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

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