Newcomer Rolls Out Housing ETF

Fund targets residential housing market.

Newcomer Hoya Capital Real Estate launched an ETF today that targets the U.S. residential housing industry. The Hoya Capital Housing ETF (HOMZ) tracks an index that is broken into four housing subsectors.

The fund comes with an expense ratio of 0.45% and lists on the NYSE Arca.

“At inception, HOMZ was conceived as a way for the 100 million renters in America to gain access to an asset class that was previously out of reach, as well as a way for homeowners to diversify their concentrated housing-related exposure,” said Alex Pettee, president of Hoya Capital Real Estate, in a press release.

“With housing costs and rents continuing to rise, we think that HOMZ could be a core component of millions of households’ asset allocation,” he added. “We think that financial advisors will potentially find this ETF to be a compelling solution for their clients who are impacted by rising rents and housing costs.”

Index Methodology

The underlying index for HOMZ targets a wide variety of companies associated with all aspects of the housing industry. The four sectors in the 100-component index and their weightings include the following:

• Home ownership and rental operations: 30%
• Home building and construction: 30%
• Home improvement and furnishings: 20%
• Home financing, technology and services: 20%

Sectors contain set numbers of components that are sorted into categories and equally weighted within them. For example, in the home improvement and furnishings sector, there are two companies included in the home improvement retailers, with each one in the category weighted at 3% during rebalancings, while the home furnishings and home goods category in that sector includes 18 companies weighted at 0.78% each.

Among the names included in the index are financial companies, retailers, REITs and homebuilders, including the likes of Allstate, Amazon Group, DR Horton, Wells Fargo and Zillow Group. (Visit our stock finder tool to find an ETF’s allocation to a certain stock.)

Contact Heather Bell at [email protected]