Investors seeking market exposure to the housing market and banking system can invest without picking stocks by trading these three exchange-traded funds.
The iShares U.S. Construction ETF (ITB) - Get Report has 44 components involved in home construction heavily weighted to homebuilder stocks. D R Horton (DHI) - Get Report and Lennar (LEN) - Get Report are by far the largest components with weightings of 12% and 11%, respectively.
The iShares U.S. Regional Banks ETF (IAT) - Get Report has 54 components that are considered regional banks, but does not include the four "too big to fail" money center banks. US Bancorp (USB) - Get Report and PNC Financial (PNC) - Get Report are by far the largest components, with weightings of 17% and 11%, respectively. These banks are most likely to be involved in mortgage lending, credit cards and small-business lines of credit.
The First Trust Nasdaq ABA Community Bank Index Fund (QABA) - Get Report has 160 components that are smaller publicly traded banks. These banks fund construction and development loans and commercial real estate loans for new communities and strip malls.
Before we look at the weekly charts and key levels for these ETFs, let's look at the most recent housing market data.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.