How do I buy iShares ETFs?

You can purchase any iShares ETF through most online brokerages or financial advisors, just as you would a stock.

How often does the iShares U.S. Home Construction ETF distribute dividends?

Dividends are typically paid quarterly.

Is the iShares U.S. Home Construction ETF a good long-term investment?

It can be if you believe in the long-term resilience of the U.S. housing market. However, because it's highly cyclical, most buy-and-hold investors use it as a satellite holding rather than a core allocation.

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How to Invest in iShares U.S. Home Construction ETF (ITB)

By Tony Dong – Updated Feb 24, 2026 at 4:32 PM EST | Fact-checked by Frank Bass

Key Points

Warren Buffett's Berkshire Hathaway invested in U.S. homebuilders; iShares ETF offers similar exposure.
iShares U.S. Home Construction ETF tracks a housing sector index, reflecting top companies.
This ETF is ideal for those anticipating a U.S. housing market upturn or ongoing demand.

Warren Buffett and Berkshire Hathaway (BRK.A +0.75%) (BRK.B +0.90%) recently disclosed new positions in several major U.S. homebuilders in their latest 13-F filing. For investors looking to follow that lead in a diversified way, the iShares U.S. Home Construction ETF (ITB +0.57%) offers an accessible option.

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NYSEMKT: ITB

iShares Trust - iShares U.s. Home Construction ETF

Today's Change

(0.57%) $0.51

Current Price

$90.05

Key Data Points

AUM

$2.1B

Dividend Yield

0.71%

Expense Ratio

0.37%

Top Holdings

DHI

16.69%

PHM

10.35%

LEN

7.83%

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This exchange-traded fund (ETF) holds a basket of homebuilding and related stocks -- companies that earn revenue from constructing, furnishing, and supplying new homes. For beginner investors, it's a simpler, diversified way to make the same trade without picking individual builders.

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What is the iShares U.S. Home Construction ETF?

This ETF passively tracks the Dow Jones U.S. Select Home Construction Index, which includes companies from the home construction, building materials and fixtures, furnishings, and home improvement retail subsectors. Like most indexes, to remain in the index, all holdings must meet basic size and liquidity requirements (typically minimum thresholds for market cap and average shares traded).

Because it is a passive ETF, the goal is not to beat the benchmark but to replicate its performance as closely as possible, giving investors direct exposure to the U.S. housing-related sector in a single holding.

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How to buy the iShares U.S. Home Construction ETF

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the ETF: Enter the ticker "ITB" into the search bar to bring up the ETF's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Holdings of the iShares U.S. Home Construction ETF

The ETF held 46 companies in late 2025, spanning home construction, building materials, furnishings, and retail. These are cyclical businesses that tend to rise and fall with housing starts and interest-rate cycles, reflected in the fund's three-year beta of 1.49, meaning it has been almost 1.5 times more volatile than the broader market. These are the top 10 holdings:

D.R. Horton (DHI +1.10%): 14.9%
Lennar Class A (LEN +0.49%): 9.6%
PulteGroup (PHM +0.57%): 8.5%
NVR (NVR +2.25%): 7.8%
Sherwin-Williams (SHW +0.37%): 4.7%
Home Depot (HD +0.69%): 4.6%
Toll Brothers (TOL -0.51%): 4.5%
Lowe's (LOW +0.69%): 4.4%
TopBuild (NYSE:BLD): 4.2%
Lennox (LII -0.14%): 3.2%

Together, these account for more than half of total assets, so performance is closely tied to the largest homebuilders and suppliers.

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Should you invest in the iShares U.S. Home Construction ETF?

You might consider this ETF if your investment thesis is that U.S. housing starts will rebound or that interest-rate cuts could spark a new homebuilding upcycle. Other potential catalysts include improving household formation trends, easing material costs, and constrained housing supply.

The fund can work as a short-term tactical trade if you expect housing activity to strengthen in the near term or as a long-term thematic holding if you see sustained demand for new housing. However, given its narrow sector focus and relatively limited number of holdings, it's best used as a satellite position -- a smaller targeted addition that complements a broader core portfolio of more diversified ETFs.

Does the iShares U.S. Home Construction ETF pay a dividend?

Yes, the iShares U.S. Home Construction ETF pays dividends. The ETF has a 30-day Securities and Exchange Commission (SEC) yield of 0.53% with quarterly distributions. The dividend yield is modest because most of its holdings reinvest heavily in growth rather than paying large dividends.

What is the iShares U.S. Home Construction ETF's expense ratio?

The expense ratio measures how much investors pay annually for the fund's management and operations. This ETF charges 0.38%, or about $38 per $10,000 invested, which is average for a sector-specific ETF.

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Expense Ratio

A percentage of mutual fund or ETF assets deducted annually to cover management, operational, and administrative costs.

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Historical performance of iShares U.S. Home Construction ETF

Annualized total returns as of Sept. 30, 2025.
Metric	1 Year	3 Year	5 Year	10 Year
Net Asset Value	(14.27%)	28.49%	14.54%	15.93%
Market Price	(14.23%)	28.44%	14.54%	15.93%

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The bottom line

This ETF offers a straightforward way to gain exposure to the U.S. housing sector at a reasonable fee and without picking individual stocks. It mirrors the performance of top homebuilders and suppliers, making it an appealing tool for investors bullish on the next housing cycle. Just keep in mind that it's a cyclical, sector-specific fund best suited as a supporting player rather than a portfolio centerpiece.

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Investing in iShares U.S. Home Construction ETF FAQ

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Tony Dong has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway, D.R. Horton, Home Depot, Lennar, NVR, and TopBuild. The Motley Fool recommends Lowe's Companies and Sherwin-Williams. The Motley Fool has a disclosure policy.

How to Invest in iShares U.S. Home Construction ETF (ITB)

Key Points

NYSEMKT: ITB

Key Data Points

What is the iShares U.S. Home Construction ETF?

How to buy the iShares U.S. Home Construction ETF

Holdings of the iShares U.S. Home Construction ETF

Should you invest in the iShares U.S. Home Construction ETF?

Does the iShares U.S. Home Construction ETF pay a dividend?

What is the iShares U.S. Home Construction ETF's expense ratio?

Expense Ratio

Historical performance of iShares U.S. Home Construction ETF

The bottom line

Related investing topics

Best ETFs for Long-Term Growth

How to Invest in SPDR S&P Homebuilders ETF (XHB)

How to Invest in iShares U.S. Infrastructure ETF (IFRA)

How to Invest in iShares Core High Dividend ETF (HDV)

Investing in iShares U.S. Home Construction ETF FAQ

How do I buy iShares ETFs?

How do I buy iShares ETFs?

How often does the iShares U.S. Home Construction ETF distribute dividends?

How often does the iShares U.S. Home Construction ETF distribute dividends?

Is the iShares U.S. Home Construction ETF a good long-term investment?

Is the iShares U.S. Home Construction ETF a good long-term investment?

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What is the iShares U.S. Home Construction ETF?

Should you invest in the iShares U.S. Home Construction ETF?

Does the iShares U.S. Home Construction ETF pay a dividend?

What is the iShares U.S. Home Construction ETF's expense ratio?

Expense Ratio

The bottom line

Best ETFs for Long-Term Growth

How to Invest in SPDR S&P Homebuilders ETF (XHB)

How to Invest in iShares U.S. Infrastructure ETF (IFRA)

How to Invest in iShares Core High Dividend ETF (HDV)

Investing in iShares U.S. Home Construction ETF FAQ

How do I buy iShares ETFs?

How do I buy iShares ETFs?

How often does the iShares U.S. Home Construction ETF distribute dividends?

How often does the iShares U.S. Home Construction ETF distribute dividends?

Is the iShares U.S. Home Construction ETF a good long-term investment?

Is the iShares U.S. Home Construction ETF a good long-term investment?

NYSEMKT: ITB

Key Data Points

How to buy the iShares U.S. Home Construction ETF

Holdings of the iShares U.S. Home Construction ETF