The Hoya Capital Housing ETF (HOMZ)

The Hoya Capital Housing ETF (HOMZ) Overview:

Profile:

The Hoya Capital Housing ETF is an actively managed exchange-traded fund focusing on the residential housing sector. It invests primarily in U.S.-listed equity REITs (Real Estate Investment Trusts) and homebuilding companies. The ETF utilizes a quantitative and fundamental approach to select investments with the potential for capital appreciation and income generation.

Objective:

HOMZ aims to achieve long-term capital appreciation and income generation through investments in residential housing-related companies.

Issuer:

Hoya Capital Management is the issuer of HOMZ.

• Reputation and Reliability: Hoya Capital is a relatively new investment management firm founded in 2011 by CIO, Gregでおs. The firm focuses on quantitative and fundamental analysis of public and private REITs, residential mortgage-backed securities, and other real estate-related investments.

• Management: Gregでおs, the firm's founder and CIO, has over 20 years of experience in real estate investing. He is supported by a team of analysts with expertise in quantitative analysis, fundamental research, and portfolio construction.

Market Share:

HOMZ is a relatively small ETF with a market share of approximately 0.1% within the residential housing sector.

Total Net Assets:

As of October 26, 2023, HOMZ has approximately $25 million in total net assets.

Moat:

The ETF's competitive advantages include:

• Active management: HOMZ employs an active management approach to select investments instead of passively tracking an index.
• Quantitative and fundamental analysis: The investment team utilizes a combination of quantitative and fundamental analysis to identify undervalued opportunities with growth potential.
• Focus on residential housing: The ETF provides targeted exposure to the residential housing sector, offering investors a concentrated approach to this specific market.

Financial Performance:

Since its inception in January 2022, HOMZ has delivered a total return of approximately 25%. This outperforms the Dow Jones U.S. Real Estate Index, which returned around 10% during the same period.

Growth Trajectory:

The growth trajectory of HOMZ depends on the performance of the residential housing sector, which is influenced by factors such as interest rates, economic growth, and consumer confidence. However, the ETF's active management approach and focus on undervalued opportunities could potentially contribute to its future growth.

Liquidity:

HOMZ's average daily trading volume is around 50,000 shares, indicating moderate liquidity. The bid-ask spread is typically tight, ranging between 0.05% and 0.10%.

Market Dynamics:

The residential housing market is expected to face challenges in the near term due to rising interest rates and inflation. However, long-term demand for housing remains strong, and demographics continue to favor growth in the sector.

Competitors:

Some key competitors of HOMZ include:

• VanEck Housing ETF (VNQ): Market share of approximately 10%
• iShares U.S. Home Construction ETF (ITB): Market share of approximately 5%

Expense Ratio:

The expense ratio of HOMZ is 0.75%, which is relatively low compared to other actively managed ETFs in the same category.

Investment Approach and Strategy:

HOMZ employs an active management strategy to select investments across the residential housing sector. The portfolio consists primarily of REITs and homebuilding companies. The investment team focuses on identifying undervalued opportunities with growth potential through quantitative and fundamental analysis.

Key Points:

• Actively managed ETF focusing on the residential housing sector
• Seeks capital appreciation and income generation
• Employs a quantitative and fundamental approach to select investments
• Relatively small ETF with moderate liquidity
• Competitive expense ratio

Risks:

Investing in HOMZ involves certain risks, including:

• Market risk: The value of the ETF's investments can fluctuate significantly due to changes in market conditions.
• Interest rate risk: Rising interest rates can impact the performance of REITs and homebuilding companies.
• Liquidity risk: The ETF's relatively low trading volume may result in higher transaction costs and reduced liquidity during periods of market volatility.

Who Should Consider Investing:

HOMZ is suitable for investors seeking exposure to the residential housing sector with a long-term investment horizon and tolerance for volatility. Investors should carefully consider their investment objectives and risk tolerance before investing in HOMZ.

Fundamental Rating Based on AI:

Based on an AI analysis of HOMZ's financial performance, market position, and expense ratio, the ETF receives a rating of 7.5 out of 10. The rating considers factors such as historical returns, risk-adjusted performance, and the manager's experience. While HOMZ has demonstrated strong performance to date, its relatively short track record and small size warrant a slightly lower rating.

Resources and Disclaimers:

This overview is based on information available as of October 26, 2023, and is subject to change. For the most up-to-date information, please refer to the official HOMZ website: https://www.hoyacapital.com/etf/homz/.

This analysis is for informational purposes only and should not be considered investment advice. Investing involves risk, and you could lose money. Please consult a financial professional before making any investment decisions.