"HOMZ ETF (NYSE: HOMZ) is the future of real estate investment"
Point Roberts, WA and Delta, BC - March 25, 2019 (Investorideas.com Newswire) Investorideas.com, a global news source and leading investor resource covering homebuilder and real estate stocks, issues commentary from a recent interview with Alex Pettee, CFA, President of Hoya Capital Real Estate, discussing the new Hoya Capital Housing ETF (NYSE: HOMZ).
Hoya Capital Real Estate is proving that investment doesn't have to be an alienating concept with their launch of HOMZ, the first exchange traded fund (ETF) to offer diversified investment options throughout the entire US housing industry.
It originally started as a "mock" company as part of an independent study in REIT portfolio management, for a Master's in Real Estate Finance program. Within a half decade, the idea of an accessible investment advising and research company had been built into an institutional platform.
An interview with Alex Pettee, CFA, President of Hoya Capital Real Estate reveals the exciting developments Hoya has made surrounding ETFs in the housing sector.
"HOMZ has been very well received by the market and we've been overwhelmed by the amount of press and investor interest. To our benefit, the housing market is always topical, and we believe that HOMZ is positioned to be the reference barometer for the entire US housing industry in the same way that other major ETFs are used to measure industry performance. The central macroeconomic theme of rising housing costs that HOMZ captures seems to be resonating with younger investors."
As Pettee puts it, "Hoya Capital Real Estate was founded with the idea of making real estate more accessible to all investors."
With the housing market in North America being virtually impenetrable for a younger generation of investors he continues to explain how HOMZ can be a powerful strategy.
"We think that HOMZ gives investors, not only millennials but anyone feeling the effects of rising housing costs, an opportunity to get their foot in the door by investing in the companies expected to benefit from rising rents and home values, including many of the companies actually collecting our rent or mortgage checks every month. Younger investors in particular have a strong affinity for ETFs, making it the perfect investment wrapper for HOMZ. We believe that ETFs are one of the greatest financial innovations of the last century because of how truly investor-friendly they are. With HOMZ, you get the liquidity, transparency, and all-day-tradability that is lacking in other platforms and investment vehicles. Plus, it's hard to beat the cost and tax efficiency of ETFs."
Being a reference barometer for the entire US housing industry is no small job. The amount and type of research that goes into achieving this standard is explained through a keen observation of macroeconomic trends. Restrictive zoning applications and rising costs to build new residential homes, coupled with housing costs exceeding the growth of wages has lead to an under investment of newer developments.
"Meanwhile, the largest "mini-generation" of Americans, the age cohort currently between 25-30 is just now entering the housing markets in full force, creating a perfect storm of factors that is continuing to drive up rents and housing costs. The effect of this underinvestment in residential construction reverberates throughout the industry."
As the market starts to trend in a positive direction, companies that provide efficient and innovative platforms to enter the housing market are ripe for the moment.
"We believe that HOMZ effectively captures these underlying improvements in efficiency and innovation throughout the sector, but also feel that HOMZ is, itself, part of this innovation."
Being an integral part of the innovation in this particular space allows for more growth and new ideas. Although the next steps tend to be dictated by the clients and investor's needs, the company shows no signs of stasis.
"...We have started to roll out our "Real Estate Robo Advisor" platform which uses real estate ETFs to construct portfolios for clients based on their individual investment needs and objectives. Clients' portfolios are built based on their investment objectives, their risk tolerance, and whether they are an owner or a renter of real estate. We believe that renters, in particular, lack the necessary exposure to real estate and could benefit by increasing their allocation to housing and housing-related assets..."
Through all the impressive developments and innovation that Hoya has already achieved, the original idea of the company rings true as the company hopes to "... eventually become the Wealthfront or Betterment of real estate."
Interview by Noel Campbell for Investorideas.com
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