The Hoya Capital Housing ETF (HOMZ)

Overview

The Hoya Capital Housing ETF (HOMZ) seeks to track the Hoya Capital Housing 100 Index, providing exposure to 100 companies involved in the residential housing industry, including homebuilders, REITs, and retailers. It aims to capture the broad spectrum of the U.S. housing market.

Reputation and Reliability

Hoya Capital is a boutique ETF issuer known for its real estate and housing-focused ETFs. Their reputation is built on specialized knowledge within these sectors.

Management Expertise

The management team at Hoya Capital possesses expertise in real estate investment and analysis, evidenced by their focus on niche real estate and housing market segments.

Goal

The primary investment goal is to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Hoya Capital Housing 100 Index.

Investment Approach and Strategy

Strategy: HOMZ tracks the Hoya Capital Housing 100 Index, a rules-based index designed to represent the performance of the U.S. residential housing industry.

Composition The ETF holds a diverse mix of stocks across various sub-sectors within the housing market, including residential REITs, homebuilders, home improvement retailers, and real estate services.

Market Share: HOMZ's market share within the broader real estate ETF category is relatively small compared to larger, more diversified REIT ETFs.

Total Net Assets (AUM): 32183770

Key Competitors

• Real Estate Select Sector SPDR Fund (XLRE)
• iShares U.S. Home Construction ETF (ITB)
• iShares Residential and Multisector Real Estate ETF (REZ)

Competitive Landscape

The competitive landscape is dominated by large, diversified real estate ETFs like XLRE. HOMZ differentiates itself with its narrower focus on the residential housing sector, which can provide targeted exposure but also makes it more susceptible to sector-specific risks. Its key advantage is its specific focus, while a disadvantage is its smaller AUM and potentially lower liquidity compared to broader ETFs.

Historical Performance: Historical performance data should be sourced from official fund fact sheets and financial websites to get the correct performance over various periods.

Benchmark Comparison: Performance should be compared to the Hoya Capital Housing 100 Index to assess tracking accuracy.

Expense Ratio: 0.3

Average Trading Volume

The average trading volume is relatively low, which can impact trading costs.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs, potentially increasing transaction costs.

Market Environment Factors

Economic indicators like interest rates, housing starts, and consumer confidence significantly influence HOMZ. The ETF's performance is also tied to the growth prospects of the housing sector.

Growth Trajectory

The growth trajectory of HOMZ depends on the overall health and performance of the U.S. housing market and any changes to the composition or methodology of the underlying Hoya Capital Housing 100 Index.

Competitive Edge

HOMZ's competitive edge lies in its focused exposure to the U.S. residential housing sector, offering investors a targeted way to invest in this specific segment. It distinguishes itself from broader real estate ETFs by specifically selecting companies involved in homebuilding, real estate services, and related retail. This targeted approach can be advantageous for investors seeking exposure solely to the housing market. However, this concentration can also make it more volatile than diversified ETFs.

Volatility

HOMZ's volatility can be higher than broader market ETFs due to its concentration in the housing sector.

Market Risk

The primary market risk is tied to the performance of the U.S. housing market, which can be sensitive to economic cycles, interest rate changes, and demographic shifts.

Ideal Investor Profile

The ideal investor is someone seeking targeted exposure to the U.S. residential housing market and who understands the sector-specific risks involved.

Market Risk

HOMZ may be suitable for long-term investors who believe in the growth potential of the housing market. It is less suitable for risk-averse investors or those seeking broad market exposure.

The Hoya Capital Housing ETF (HOMZ) provides targeted exposure to the U.S. residential housing sector by tracking the Hoya Capital Housing 100 Index. It invests in a variety of housing-related industries, including homebuilders, REITs, and retailers. While offering a focused approach, it carries sector-specific risks and may exhibit higher volatility compared to diversified ETFs. Its relatively low AUM and trading volume could pose liquidity concerns for some investors, making it most suitable for those with a strong conviction in the housing market's growth prospects.

Data Sources:

• Hoya Capital website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market share data is approximate and may vary. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.