Home-improvement stocks can boost your portfolio

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Spring is when homeowners dust off their tools and open their wallets. Home-improvement retailers enjoy an uptick in business and store traffic during the spring, and 2015 might be particularly good for the sector.

A housing market that’s back on track, lower unemployment and falling gasoline prices put more disposable income in consumers’ pockets, says Judson H. Gee, who is the managing partner at JHG Financial Advisors. “Consequently, homeowners will spend on their homes.”

Gee likes the iShares U.S. Home Construction exchange-traded fund (ETF) (NYSE: ITB; Price: $24.48) and the SPDR S&P Home Builders ETF (NYSE: XHB; Price: $33.09) better than individual stocks. “With the ETFs, investors can look long term,” he says. Pat G. Sharma, who is a financial adviser, agrees that the two ETFs are a good way to invest in this sector.