Investing involves risks. Principal loss is possible. The Fund is not actively managed. The Fund’s investments will be concentrated in housing and real estate-related industries. Investments in real estate companies and the construction and housing industry involve unique risks. Real estate companies, including REITs, may have limited financial resources, may trade less frequently and in limited volume, and may be more volatile than other securities. Many factors may affect real estate values, including the availability of mortgages and changes in interest rates. Real estate companies are also subject to heavy cash flow dependency, defaults by borrowers, and self-liquidation. The construction and housing industry can be significantly affected by the real estate markets. Compared to large cap companies, small and mid-capitalizations companies may be less stable and their securities may be more volatile and less liquid. As with all ETFs, Shares may be bought and sold in the secondary market at market prices and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Although it is expected that the market price of Shares will approximate the Fund’s NAV, there may be times when the market price of Shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply and demand of Shares or during periods of market volatility.
Chart Data Sources
New Home Sales
: US Census Bureau. Monthly New Residential Sales, November 2019 (Release Date: December 23, 2019) New Home Sales is an economic indicator which records sales of newly constructed residences in the United States of America.
Housing Starts & Building Permits
: US Census Bureau. Monthly New Residential Construction, December 2019. (Release Date: January 19, 2020) Housing starts is an economic indicator that reflects the number of privately owned new housing units on which construction has been started in a given period. Building permits represent the number of new privately-owned housing units authorized by building permits in the United States.
Supply of New Homes
: US Census Bureau.Monthly New Residential Sales, November 2019 (Release Date: December 23, 2019). Median Number of Months on Sales Market for Newly Completed Homes is a measure of the available supply of newly-completed homes in the United States.
Traffic of Prospective Homebuyers
: National Association of Homebuilders. NAHB/ Wells Fargo Housing Market Index, January 2020. (Release Date: January 18, 2020). The Traffic of Prospective Home Buyers Index, which measures NAHB member-reported foot traffic from potential homebuyers, is a component of the National Association of Home Builders (NAHB) Housing Market Index (HMI), which is a gauge of builder opinion on the relative level of current and future single-family home sales. HMI can range between 0 and 100. Readings above 50 mean that most of Association members evaluate sales conditions as favorable.
Additional Data Sources
1) US Census Bureau. Monthly New Residential Construction, December 2019. (Release Date: January 19, 2020) Housing starts is an economic indicator that reflects the number of privately owned new housing units on which construction has been started in a given period.
2) National Association of Homebuilders. NAHB/ Wells Fargo Housing Market Index, January 2020. (Release Date: January 18, 2020). The Traffic of Prospective Home Buyers Index, which measures NAHB member-reported foot traffic from potential homebuyers, is a component of the National Association of Home Builders (NAHB) Housing Market Index (HMI), which is a gauge of builder opinion on the relative level of current and future single-family home sales. HMI can range between 0 and 100. Readings above 50 mean that most of Association members evaluate sales conditions as favorable.
3) Bureau of Labor Statistics. Consumer Expenditure Survey, 2018. (Release Date: September 10, 2019). Spending on housing is measured as a percent of average annual expenditures of all consumer units.
4) S&P Dow Jones Indices. S&P 500 Index Fact Sheet. November 2019. The S&P 500 is a stock market index that tracks the stocks of 500 large-cap U.S. companies. It represents the stock market's performance by reporting the risks and returns of the biggest companies.
ETF Express Award Methodology
Awards are based on a “peer review system” whereby ETF Express readers – including institutional and high net worth advisors, managers, and other industry professionals at fund administrators, prime brokers, custodians, and advisers – are invited to elect a “best in class” in a series of categories via an online survey. There were 1,202 votes cast in total. ETF Express worked with Algo-Chain to pre-select ETF Providers in each category based on investment performance during the twelve month period of May 2018-May 2019 leading up to the award selection. Subjective categories did not have pre-selected categories. In each category, the firms with the most votes at the end of the voting period are subject to a final review by ETF Express’s Senior Editorial team. Awarded on October 24, 2019.
ETF.com Award Methodology
Winners are selected in a three-part process designed to leverage the insights and opinions of leaders throughout the ETF industry.
Step 1
: The awards process began with open nominations, which started Dec. 4, 2019, and closed Jan. 4, 2020. Self-nominations were accepted, and nominations were not limited to a maximum number of categories.
Step 2
: Following the open nominations process, the ETF.com Awards Nominating Committee—made up of ETF.com editorial staff—reviews nominations. Nominations are screened for eligibility (appropriate timing and category). If more than five unique entries are received in the nominations process, the members of the Nominating Committee will force-rank their top five, resulting in a final slate for each category. Votes will be resolved on a majority basis, and ties broken where possible with head-to-head runoff votes. If ties cannot be broken, more than five finalists are allowed. The Nomination Committee completed its work by Jan. 10, 2020. Shortly thereafter, the nominees were be published on ETF.com.
Step 3:
Winners among these finalists will be selected by a majority vote of the ETF.com Awards Selection Committee, a group of independent ETF experts from across the ETF community. Committee members will recuse themselves from voting in any category in which they or their firms appear as finalists. Ties will be decided where possible with head-to-head runoff votes. Voting will be complete by Jan. 31, 2019, but results will be kept confidential until they are announced in March, and published in the April ETF Report.
Categories
: ‘Best New US Equity ETF’ is awarded to an ETF Launched in 2019 that is judged by the ETF Awards Nominating Committee to be the best new ETF of the year in the equity category. ‘Most Innovative New ETF’ is awarded to an ETF Launched in 2019 that is judged by the ETF Awards Nominating Committee to be the most innovative new ETF of the year. ‘New ETF Issuer of the Year’ ETF’ is awarded to an ETF Issuer that launched their first fund in that is judged by the ETF Awards Nominating Committee to be the best new ETF issuer.
The Hoya Capital Housing ETF seeks to track the performance, before fees and expenses, of the Hoya Capital Housing 100 Index. The Index is a rules-based index designed to track the 100 companies that collectively represent the performance of the US Housing Industry, divided into four residential real estate-related business segments: 1) Home Ownership and Rental Operations; 2) Home Building and Construction; 3) Home Improvement and Furnishings; 4) Home Financing, Technology & Services. Designed to track total annual spending on housing and housing-related services at the national level, each of the four segments is weighted based on its relative contribution to GDP.
Hoya Capital Real Estate is the advisor to HOMZ and is distributed by Quasar Distributors, LLC.
