The Hoya Capital Housing ETF (HOMZ)

Overview

The Hoya Capital Housing ETF (HOMZ) focuses on investing in a broad range of companies involved in the U.S. housing industry, including homebuilders, real estate operators, and related technology companies. Its asset allocation is primarily in equities. The investment strategy seeks to capture the growth and innovation within the housing ecosystem.

Reputation and Reliability

Hoya Capital is a research-focused investment advisor specializing in real estate. While relatively newer compared to larger firms, they have gained recognition for their niche expertise in the housing sector.

Management Expertise

The management team at Hoya Capital possesses experience in real estate investment, research, and portfolio management, demonstrating a strong understanding of the housing market dynamics.

Goal

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

Investment Approach and Strategy

Strategy: HOMZ aims to track the Hoya Capital Housing 100 Index, which is designed to reflect the performance of the U.S. housing sector.

Composition The ETF holds stocks of companies involved in various segments of the housing industry, encompassing homebuilders, real estate management, technology, and retail.

Market Share: HOMZ has a modest market share within the broader real estate and housing ETF market.

Total Net Assets (AUM): 37000000

Key Competitors

• ITB
• XHB
• PKB

Competitive Landscape

The housing ETF market is dominated by larger, more established funds like ITB and XHB. HOMZ differentiates itself by offering a more comprehensive exposure to the entire housing ecosystem, including technology and retail. The advantages of HOMZ includes broad exposure, and the disadvantage includes smaller AUM compared to its competitors.

Historical Performance: Historical performance data should be analyzed over various time periods (e.g., 1-year, 3-year, 5-year, and 10-year, if available) from reputable financial data sources.

Benchmark Comparison: The ETF's performance needs to be compared against the Hoya Capital Housing 100 Index, or a similar benchmark like the S&P Homebuilders Select Industry Index.

Expense Ratio: 0.3

Average Trading Volume

HOMZ exhibits moderate liquidity with an average trading volume of approximately 20,000 shares per day.

Bid-Ask Spread

The bid-ask spread for HOMZ is typically around 0.10%, indicating a reasonable cost for trading.

Market Environment Factors

Economic indicators like interest rates, housing starts, and consumer confidence, along with sector-specific trends like demographic shifts and technological advancements, influence HOMZ.

Growth Trajectory

Growth depends on housing market expansion, technological adoption, and consumer spending patterns. Changes to strategy include index adjustments for representative holdings.

Competitive Edge

HOMZ's competitive advantage lies in its comprehensive focus on the entire U.S. housing ecosystem, encompassing diverse segments beyond traditional homebuilders. Its unique index provides exposure to technology-driven companies, allowing investors to capitalize on innovation. The ETF's relatively small size can offer agility in adapting to market trends. It offers investors a targeted approach to the housing market.

Volatility

The volatility of HOMZ should be assessed by calculating its standard deviation and beta compared to the broader market. These metrics provide insight into the ETFu2019s price fluctuations and sensitivity to market movements.

Market Risk

HOMZ is exposed to risks associated with the housing market, including interest rate fluctuations, economic downturns, and changes in consumer sentiment. Its reliance on the housing sector makes it sensitive to cyclical trends.

Ideal Investor Profile

The ideal investor for HOMZ is someone seeking targeted exposure to the U.S. housing market, including its diverse segments and technology-driven innovation. Investors who believe in the long-term growth potential of the housing ecosystem would also benefit.

Market Risk

HOMZ is suitable for long-term investors looking for targeted exposure and diversification within the housing sector. It is less suited for extremely risk-averse investors due to the sector-specific focus.

The Hoya Capital Housing ETF (HOMZ) provides a targeted investment approach to the U.S. housing market, including technology and retail aspects of the sector. While its AUM is relatively small compared to competitors, its comprehensive exposure to the housing ecosystem is a distinctive feature. Investors should be aware of the market risk associated with housing market cycles. HOMZ suits long-term investors looking for targeted housing exposure, but smaller AUM can affect the volatility of the fund.

Data Sources:

• Hoya Capital
• ETF.com
• Yahoo Finance
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered as financial advice. Investment decisions should be based on individual circumstances and consultation with a financial advisor. Market data is subject to change.