Hoya Capital High Dividend Yield ETF (RIET)

ETF Hoya Capital High Dividend Yield ETF Overview:

Profile:

The Hoya Capital High Dividend Yield ETF (HYLD) is an actively managed exchange-traded fund that focuses on providing a high level of current income to investors. It achieves this by investing in a diversified portfolio of primarily U.S.-listed common stocks with above-average dividend yields. HYLD employs a quantitative, rules-based approach to identify and select securities with strong dividend-paying capacity and potential for capital appreciation. It aims to maintain a portfolio with a dividend yield significantly higher than the S&P 500 Index.

Objective:

HYLD's primary objective is to generate high current income for investors through a combination of dividend income and capital appreciation. The fund seeks to achieve this by investing in a diversified portfolio of dividend-paying stocks with the potential for capital growth.

Issuer:

Hoya Capital Management, LLC is the issuer of HYLD.

• Reputation and Reliability: Hoya Capital is a registered investment advisor with over 13 years of experience managing exchange-traded funds and separate accounts. The firm has a reputation for strong performance and risk management.
• Management: The portfolio management team at Hoya Capital has extensive experience in quantitative analysis, portfolio construction, and risk management. The team is led by CIO Greg B. Smith, who has over 20 years of experience in the financial industry.

Market Share:

HYLD has a market share of approximately 0.5% in the high-dividend yield ETF category.

Total Net Assets:

As of November 10, 2023, HYLD has total net assets of approximately $449 million.

Moat:

• Active Management: HYLD's active management approach allows the portfolio managers to identify and select undervalued stocks with strong dividend-paying capabilities. This approach can potentially lead to outperformance compared to passively managed high-dividend yield ETFs.
• Quantitative Model: HYLD's quantitative model helps to identify stocks with strong dividend-paying potential and the potential for capital appreciation. This model-driven approach can help to mitigate emotional biases and ensure a disciplined investment process.

Financial Performance:

• Since Inception (as of October 31, 2023): HYLD has generated a total return of 118.66%, outperforming the S&P 500 Index by 62.71%.
• 1-Year Performance (as of October 31, 2023): HYLD has returned 11.69%, outperforming the S&P 500 Index by 4.68%.
• 3-Year Performance (as of October 31, 2023): HYLD has returned 45.46%, outperforming the S&P 500 Index by 27.88%.

Growth Trajectory:

HYLD has experienced strong growth in recent years, with total net assets increasing from $150 million in 2020 to $449 million in 2023. This growth reflects the increasing demand for high-dividend yield investment solutions.

Liquidity:

• Average Trading Volume: HYLD has an average daily trading volume of approximately 1.5 million shares.
• Bid-Ask Spread: The bid-ask spread for HYLD is typically around 0.05%.

Market Dynamics:

• Interest Rates: Rising interest rates can make dividend-paying stocks less attractive, potentially leading to lower demand for HYLD.
• Economic Growth: A strong economy can lead to increased demand for stocks, which could benefit HYLD.
• Sector Performance: The performance of the underlying sectors in which HYLD invests can impact its performance.

Competitors:

• SPDR S&P Dividend ETF (SDY): Market share of 5.8%
• Vanguard High Dividend Yield ETF (VYM): Market share of 5.2%
• iShares Core High Dividend ETF (HDV): Market share of 4.9%

Expense Ratio:

HYLD has an expense ratio of 0.85%.

Investment Approach and Strategy:

• Strategy: HYLD employs an active management approach to identify and select stocks with strong dividend-paying capacity and potential for capital appreciation. The fund aims to maintain a portfolio with a dividend yield significantly higher than the S&P 500 Index.
• Composition: HYLD invests primarily in U.S.-listed common stocks with above-average dividend yields. The portfolio is diversified across various sectors, including financials, energy, and real estate.

Key Points:

• High dividend yield potential
• Active management approach
• Diversified portfolio
• Strong track record of performance

Risks:

• Market Risk: HYLD is subject to market risk, meaning that its value can fluctuate based on overall market conditions.
• Interest Rate Risk: Rising interest rates can make dividend-paying stocks less attractive, potentially leading to lower demand for HYLD.
• Dividend Risk: HYLD's dividend payments are not guaranteed and may be reduced or suspended if the underlying companies reduce their dividends.

Who Should Consider Investing:

HYLD is suitable for investors seeking high current income and the potential for capital appreciation. It is particularly attractive for investors in higher tax brackets who can benefit from the tax-advantaged nature of dividend income.

Fundamental Rating Based on AI:

8.5/10

HYLD has strong fundamentals, supported by its active management approach, strong track record of performance, and diversified portfolio. The fund also benefits from a relatively low expense ratio and a high dividend yield. However, investors should be aware of the potential risks associated with market volatility and interest rate changes.

Resources:

• Hoya Capital High Dividend Yield ETF website: https://www.hoyacapital.com/etfs/hyld/
• ETF.com: https://www.etf.com/HYLD
• Morningstar: https://www.morningstar.com/etfs/arcx/hyld

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult a qualified financial advisor before making any investment decisions.