Opinions Stephen Weiss, Founder, Short Hills Capital Partners
iShares DJ Home Construction ETFITBSHORTOct 20, 2023
$72.77
Stock price when the opinion was issued
$92.90
As of Jun 05, 2026. Market Open.
E.T.F.'s
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WEAK BUY
When the market turns, buying US homebuilders is like catching a falling knife. The risk/reward looks in your favour. Housing shortage in the US. The easy thing to do is to buy the ITB ETF, a great way to not have to make a big bet one way or the other. But you're fighting the macro of mortgage rates at 10 to 15-year highs. Not a great setup from a sentiment perspective. As long as builders can sell homes, and they continue to be affordable, they have great earnings power.
E.T.F.'s
BUY
Home Construction? These go in cycles and he thinks we are at the bottom of the current one and he is back looking. You have to think if demand increases and interest rates remain low, there will be pent up demand, especially when people return to work. Plus there is a good boom in the home renovation space. He thinks the sector has legs going forward.
E.T.F.'s
PAST TOP PICK
(A Top Pick Oct 03/19, Up 6%) A play on construction whose seasonality is end-October to February. This is trending higher, supported by major moving averages. He's buying into what goes into building new homes, like lumber which he's done very well with. Even 12 months ago, ITB outperformed, and it has since gone straight up since then. It's exhausted its run, so he's looking for something with juice.
E.T.F.'s
TOP PICK
He's bullish U.S. housing. This ETF has risen this week, while the market has fallen. Seasonally, it's Oct. 28 - Feb. 5 because it's the run-up to homebuying in the spring. Investors are pricing in lowering interest rates, because it has been penalized by the threat of higher rates.
Jon VialouxOwned
E.T.F.'s
He remains short this, because he doesn't see good news in home or commercial construction.