On Wednesday, Hoya Capital Real Estate — an award-winning ETF issuer and research-focused investment advisor — announced the launch of its second fund, the Hoya Capital High Dividend Yield ETF (RIET).
RIET tracks the Hoya Capital High Dividend Yield Index (“RIET Index”), a rules-based index designed to provide diversified exposure to 100 of the highest dividend-yielding real estate securities in the United States.
RIET expects to pay monthly distributions. The RIET Index Dividend Yield as of 8/31/2021 is 6.70%. Click here to view yields and standardized performance.
The RIET Index includes 100 high dividend-yielding common and preferred securities issued by Real Estate Investment Trusts (“REITs”) and real estate operating companies. The selection process incorporates a quality screen to identify REITs with lower leverage and begins by selecting ten “Dividend Champions.” Securities are then selected based principally on dividend yield with diversification targets across real estate property sectors.
The launch of RIET follows the successful launch of Hoya Capital Housing ETF (HOMZ), which recently surpassed $80 million in assets under management. HOMZ was awarded the Most Successful & Innovative ETF Launch of 2019 by ETF Express and is the lowest-cost ETF out of 5 funds in the ETF Database Homebuilders category.
“RIET exclusively targets the income side of the real estate sector, making it the perfect complement to HOMZ, which seeks to invest in some of the fastest-growing real estate securities,” commented Alex Pettee, CFA, director of research at Hoya Capital. “With RIET and HOMZ, investors are now able to better align their portfolio with their specific investment objectives – whether it be higher income or higher growth.”
Professor Jonathan Morris of Georgetown University and founder of REIT Academy commented, “RIET is particularly innovative because it achieves its premium yield not by going all-in on the riskier segments of the real estate sector, but rather by expanding and redefining the real estate investible universe.”
“The diligently researched index selection process incorporates innovative exposure to both common and preferred stock, plus a well-crafted mix of exposure to real income-producing assets through its holdings in companies across the broader REIT universe,” concluded Professor Morris.
Hoya Capital also announced a fee waiver for RIET, lowering the net expense ratio to 0.25% from 0.50% until at least September 30, 2022, providing immediate value to investors at launch.
“For investors seeking income in a simple and cost-effective package, we believe RIET fills a significant and immediate investor need,” concluded Hoya Capital CEO Sheila Pettee, CFA. “When investing in real estate, investors should remember ‘I before E’ in RIET because Income Comes First.”
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About Hoya Capital Real Estate
Hoya Capital Real Estate (“Hoya Capital”) is a research-focused Registered Investment Advisor headquartered in Rowayton, Connecticut. Founded with a mission to make real estate more accessible to all investors, Hoya Capital specializes in managing institutional and individual portfolios of publicly traded real estate securities, focused on delivering sustainable income, diversification, and attractive total returns. For more information, visit www.HoyaCapital.com.