ETF Research Center

iShares US Home Construction Index Fund is an exchange-traded fund located in the USA. The Fund seeks investment results that correspond generally to the price and yield performance of the Dow Jones US Select Home Builders Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Barclays Global Fund Advisors
Website	www.ishares.com
Inception date	May 05, 2006
Assets (mns)	$1,289
Currency	USD
Expense ratio	42 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	State Street Bank & Trust
Weighting	Market Cap
Index replication	Optimized
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	46
Wgt avg mkt cap (mns)	$27,442
Large cap (>$10bn)	63.1%
Mid cap ($2-10bn)	29.6%
Small cap (<$2bn)	7.3%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	65.0 %
DR HORTON INC	13.2 %
LENNAR CORP-CL A	12.4 %
NVR INC	9.1 %
PULTE HOMES INC	7.4 %
SHERWIN-WILLIAMS CO/THE	4.7 %
HOME DEPOT INC	4.3 %
LOWE'S COS INC	4.3 %
TOLL BROTHERS INC	3.8 %
MASCO CORP	3.1 %
TOPBUILD CORP	2.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	99.5 %
	CANADA	0.4 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
49.3%	44.2%	13.7%	15.5%	0.9%

Market Correlations
versus...	Beta	R-squared
S&P500	1.02	45%
MSCI EAFE	0.99	35%
MSCI Emg. Mkts.	0.69	28%

Technical Indicators
Recent close	$44.91
30d moving avg.	$44.47
Annualized volatility	18.4%
Short interest (ETF)	0.0%
Short interest (Underlying)	5.6%
Relative strength (RSI)	56

Liquidity measures
Avg. volume (thou.)	2,455
Turnover	8.6%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$3,420

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the iShares US Home Construction ETF based on the alternatives' overlap in portfolio holdings with ITB. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

ITB

Expense:

42 bp

ALTAR Score™:

8.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH ITB
Ticker	Fund Name	Overlap¹ vs ITB (%)	Expense ratio (bp)	Savings vs ITB (bp)	ALTAR Score™ (%)	ALTAR vs ITB (%)
XHB	SPDR S&P Homebuilders	53.4	35	7	7.7	-0.7
PKB	Invesco Dynamic Building & Construction	33.9	60	-18	6.5	-1.8
HOMZ	Hoya Capital Housing	33.6	45	-3	6.3	-2.0
RCD	Invesco S&P Equal Weight Consumer Discretionary	13.2	40	2	8.4	+0.0
PSCD	Invesco S&P Small Cap Consumer Discretionary	11.4	29	13	8.3	-0.1
XLY	Consumer Discretionary Select Sector SPDR	11.3	13	29	5.7	-2.7
VCR	Vanguard Consumer Discretionary	10.8	10	32	5.5	-2.9
FDIS	Fidelity MSCI Consumer Discrettionary	10.7	8	34	5.4	-3.0
FXD	First Trust Consumer Discretionary	10.6	64	-22	8.0	-0.3
PEZ	Invesco DWA Consumer Discretionary Momentum	9.9	60	-18	4.9	-3.5
PRN	Invesco DWA Industrials Momentum	8.6	60	-18	4.2	-4.2
RTH	VanEck Vectors Retail	8.6	35	7	5.7	-2.6
EES	WisdomTree SmallCap Earnings	8.5	38	4	9.3	+0.9
RXI	iShares S&P Global Consumer Discretionary	8.4	46	-4	6.8	-1.6
VAMO	Cambria Value & Momentum	7.8	64	-22	6.3	-2.1
JHMC	John Hancock Multifactor Consumer Discretionary	7.7	40	2	5.9	-2.5
IEDI	iShares Evolved U.S. Discretionary Spending	7.3	18	24	5.0	-3.4
KNOW	Direxion All-Cap Insider Sentiment	7.3	59	-17	10.2	+1.8
IYC	iShares DJ US Consumer Services	7.2	42	0	5.0	-3.3
RZV	Invesco S&P Smallcap 600 Pure Value	6.6	35	7	8.6	+0.2

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	iShares US Home Construction
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	16.3	%
Divided by: Fwd. P/BV	1.9	x
Less: Expense ratio	42	bp
Equals: ALTAR Score	8.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.