investing

Hoya Capital Housing (HOMZ): A Well-Built ETF

This fund invests in all aspects of the real estate market.

Housing represents the largest slice of the average American’s annual spending, at 33%. Yet the few housing-related exchange-traded funds available to investors overlook huge chunks of the market. Some invest in builders of single-family homes and home-improvement stores but forgo multifamily investments such as apartment real estate investment trusts. ETFs that do hold these REITs, meanwhile, often leave out the homebuilders and DIY shops. With the Hoya Capital Housing ETF (symbol HOMZ), you can invest in all three categories, and more.

HOMZ is offered by investment adviser Hoya Capital Real Estate. The ETF tracks the Hoya Capital Housing 100 index, made up of 100 stocks. The ETF puts 30% of assets in homebuilders and construction stocks, and another 30% in real estate operators such as apartment REITs. It then allocates 20% to home-improvement retailers, furniture stores and the like, and the last 20% to home financing, technology and services companies.

Low mortgage rates, slower-growing home prices and a glut of millennials hitting their prime home-buying years bode well for the housing industry. HOMZ provides access to an array of businesses poised to benefit.

States with the lowest beer taxes

ETF spotlight.FINAL.indd

Getty Images

The fund, launched in March 2019, has no track record to speak of. And assets, although growing well, are still small. That makes HOMZ speculative, but its approach is promising. Since its debut, the ETF has returned 17.6%, compared with 12.4% for Standard & Poor’s 500-stock index over the same period.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
Can't Sleep at Night? Consider Getting Checked Out By a Doctor
health insurance

Can't Sleep at Night? Consider Getting Checked Out By a Doctor

Older adults are more likely to suffer from sleep disorders, such as insomnia and sleep apnea. Left untreated these conditions can have dire consequen…
May 26, 2021
Midyear Investing Outlook: Where to Invest Now
Kiplinger's Investing Outlook

Midyear Investing Outlook: Where to Invest Now

After a powerful start, stocks will grind higher in the second half of 2021. But watch out for curveballs.
May 23, 2021

Recommended

Vanguard Money Market Funds: What You Need to Know
investing

Vanguard Money Market Funds: What You Need to Know

Vanguard money market funds are a notable asset storage tool. Here, we break down what you need to know about the firm's six offerings.
June 9, 2021
30 Top Stock Picks That Billionaires Love
stocks

30 Top Stock Picks That Billionaires Love

Billionaire investors were busy at the start of 2021. Here are 30 companies, of various shapes and sizes, that were some of their top stock picks in t…
June 1, 2021
Principal Healthcare Innovators: Earnings Not Wanted
Becoming an Investor

Principal Healthcare Innovators: Earnings Not Wanted

This stock fund uses "counterintuitive" criteria to target small and midsize healthcare companies focused on innovation.
May 27, 2021
Vanguard Short-Term Investment-Grade Keeps It Short and Sweet
Kip 25

Vanguard Short-Term Investment-Grade Keeps It Short and Sweet

This member of the Kiplinger 25 focuses on debt with one- to five-year maturities, making it less sensitive to interest-rate shifts.
May 25, 2021