Cramer’s Play on Retail and Housing

There’s a bull market in many retail properties and a turn in residential and non-residential construction, and Cramer has a single way to play both themes—the iShares Dow Jones U.S. Real Estate Fund.

This REIT ETF is about 20 percent retail, and its largest holding is Simon Property Group , the best performing REIT. While Cramer thinks Simon has run too much to buy on its own, it provides an excellent mix of high-end shopping malls and lower-end outlets. IYR also contains Tanger Factory Outlet Centers, one of Cramer’s favorite REITS, for outlets and Taubman Centers for shopping centers.

Residential REITS are 14 percent of the IYR, and its number four holding is Equity Residential , the largest residential REIT in America by market cap. It also has exposure to non-residential construction in names like Boston Properties and Vornado Realty Trust .

In addition, it has other “worthwhile” holdings outside of these themes, like American Tower and Annaly Capital Management .

“The IYR gives you safety through diversification, it lets you play multiple themes relating to the improving U.S. economy, and it also pays you a bountiful 3.8 percent yield to boot,” Cramer said, “which is why for only the second time in the history of Mad Money, I'm recommending an ETF over individual stocks.”

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer

    Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book