Listed on the New York Stock Exchange, HOMZ is a diversified, passively-managed ETF that seeks to track the Hoya Capital Housing 100 Index, a rules-based index designed to track the 100 companies that collectively represent the performance of the US housing sector including home builders, home rental operators, home improvement companies, and home financing, services, and technology firms.
"We designed the Housing 100 Index to be the new benchmark for the US Housing Industry, capturing the compelling thematic growth trends of this critical asset class," said Alex Pettee, CFA, President and Director of Research & ETFs at Hoya Capital Real Estate. "There's more to real estate than REITs and there's more to Housing than Homebuilders."
The US Housing Industry has exhibited impressive resilience in 2019 as the combination of historically low housing supply and strong demographic-driven demand has provided a favorable macroeconomic backdrop for the US housing sector in the next decade and beyond.
"The effects of the housing shortage, we believe, has been a continued rise in housing costs and a growing share of spending towards housing and housing-related services." Pettee continued, "Millennials are coming full-steam into the US housing markets over the next decade, whether the supply-side is ready for it or not."
Housing is the single largest annual expenditure for the average American household, accounting for a third of average annual spending.1 "We believe that many investors – particularly renting households – lack adequate exposure to residential real estate. With housing costs and rents continuing to rise, we believe that HOMZ could be a core component of millions of households' asset allocation," Pettee continued. "For institutional investors, we believe that HOMZ is potentially the most efficient way to express a directional view on the US housing sector or for investors seeking to hedge an existing housing-related exposure."
"We believe that HOMZ provides a modernized and intuitive evolution in the homebuilding and real estate fund categories," Pettee continued. Reflecting the underlying strength of the US housing industry this year, from its launch on March 19, 2019 through September 30, 2019, HOMZ has outperformed the S&P 500 by 872 basis points based on Market Value. During this time, HOMZ has generated a cumulative total return of 14.91% compared to a return of 6.19% on the S&P 500 based on Market Value.
Click here for a link to the Fund's performance. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent month-end can be obtained by calling 1-833-HOYA-CAP.
Award Methodology: Awards are based on a "peer review system" whereby ETF Express readers – including institutional and high net worth advisors, managers, and other industry professionals at fund administrators, prime brokers, custodians, and advisers – are invited to elect a "best in class" in a series of categories via an online survey. There were 1,202 votes cast in total. ETF Express worked with Algo-Chain to pre-select ETF Providers in each category based on investment performance during the twelve month period of May 2018-May 2019 leading up to the award selection. Subjective categories did not have pre-selected categories. In each category, the firms with the most votes at the end of the voting period are subject to a final review by ETF Express's Senior Editorial team. Awarded on October 24, 2019.
About Hoya Capital Real Estate
Hoya Capital Real Estate is a research-focused Registered Investment Advisor based in Rowayton, Connecticut. Hoya Capital is among the most widely-read and cited publishers of real estate commentary and research. For more information about Hoya Capital Housing ETF, visit www.TheHousingETF.com.
Important Disclosures
Click Here for Prospectus.
Investing involves risks. Principal loss is possible. The Fund is not actively managed. The Fund's investments will be concentrated in housing and real estate-related industries. Investments in real estate companies and the construction and housing industry involve unique risks. Real estate companies, including REITs, may have limited financial resources, may trade less frequently and in limited volume, and may be more volatile than other securities. Many factors may affect real estate values, including the availability of mortgages and changes in interest rates. Real estate companies are also subject to heavy cash flow dependency, defaults by borrowers, and self-liquidation. The construction and housing industry can be significantly affected by the real estate markets. Compared to large cap companies, small and mid-capitalizations companies may be less stable and their securities may be more volatile and less liquid. As with all ETFs, Shares may be bought and sold in the secondary market at market prices and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Although it is expected that the market price of Shares will approximate the Fund's NAV, there may be times when the market price of Shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply and demand of Shares or during periods of market volatility.
Basis points are a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% or 1/100th of a percent.
*An investment in the fund is subject to fees and expenses. Distributions are not guaranteed. Diversification does not assure a profit nor protect against loss in a declining market. It is not possible to invest directly in an index.
The S&P 500 Index is a broad-based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general. You cannot invest directly in an index.
1Bureau of Labor Statistics. Consumer Expenditure Survey, 2018. https://www.bls.gov/news.release/cesan.nr0.htm.
Hoya Capital Real Estate is the advisor to HOMZ and is distributed by Quasar Distributors, LLC.
Company Contact
Alex Pettee, CFA
Hoya Capital Real Estate, President, Director of Research & ETFs
[email protected]
(833) HOYA-CAP (Ext: 1)
SOURCE Hoya Capital Real Estate
Related Links
https://www.hoyacapital.com
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