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.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
-
Tax Credit vs. Tax Deduction: What’s the Difference?Tax Breaks Your guide to tax deductions and credits, how the IRS treats them differently, and how they impact your tax bill.
-
Why Now May Be a Good Time to Invest in CommoditiesYou may want to consider adding inflation-hedging commodities such as bitcoin and gold to your portfolio.
-
The 5 Best Actively Managed Fidelity Funds to Buy Nowmutual funds In a stock picker's market, it's sometimes best to leave the driving to the pros. These Fidelity funds provide investors solid active management at low costs.
-
The 12 Best Bear Market ETFs to Buy NowETFs Investors who are fearful about the more uncertainty in the new year can find plenty of protection among these bear market ETFs.
-
Don't Give Up on the Eurozonemutual funds As Europe’s economy (and stock markets) wobble, Janus Henderson European Focus Fund (HFETX) keeps its footing with a focus on large Europe-based multinationals.
-
Best Bond Funds to BuyInvesting for Income The best bond funds provide investors with income and stability – and are worthy additions to any well-balanced portfolios.
-
Vanguard Global ESG Select Stock Profits from ESG Leadersmutual funds Vanguard Global ESG Select Stock (VEIGX) favors firms with high standards for their businesses.
-
Kip ETF 20: What's In, What's Out and WhyKip ETF 20 The broad market has taken a major hit so far in 2022, sparking some tactical changes to Kiplinger's lineup of the best low-cost ETFs.
-
ETFs Are Now Mainstream. Here's Why They're So Appealing.Investing for Income ETFs offer investors broad diversification to their portfolios and at low costs to boot.
-
Do You Have Gun Stocks in Your Funds?ESG Investors looking to make changes amid gun violence can easily divest from gun stocks ... though it's trickier if they own them through funds.
