HOMZ: HOYA CAPITAL HOUSING ETF
ETF Education Report: HOYA CAPITAL HOUSING ETF (HOMZ)
What this ETF is trying to do
The HOYA CAPITAL HOUSING ETF (ticker: HOMZ) is an exchange-traded fund that focuses on the housing sector. It holds a variety of different companies within this industry. Based on its top holdings, the fund includes companies involved in home improvement and home building, such as The Home Depot Inc and Lowe's Companies Inc.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price. For HOMZ, the one-year price return was approximately -12.82%. The year-to-date (YTD) price return was approximately -7.61%.
• Total Return: This includes the share price change plus any cash distributions paid out to investors. The one-year total return was approximately -10.44%, and the YTD total return was approximately -5.80%.
Looking further back, the three-year price return was 12.77%, while the three-year total return was 21.39%. This shows that over a longer period, the total return was higher than the price return.
To give you an idea of recent movement, the current price is $41.91. The estimated price from roughly one year ago was approximately $48.07.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. HOMZ has a distribution yield of approximately 2.91%. This means the amount of cash distributed is about 2.91% relative to the ETF's price. These distributions usually happen monthly, with 13 payments recorded over the last year.
It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they do not guarantee that your original investment will stay the same value.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of an ETF's underlying assets declines. StockValueFinder uses an "erosion-risk score" to measure this risk. HOMZ has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk and not a definitive proof that the fund's value has collapsed. Currently, there is no severe erosion-risk flag for this ETF.
Pros
• The fund has shown positive total returns over a three-year period (21.39%).
• It provides regular cash distributions, which are usually paid out monthly.
Cons
• The ETF has experienced a share-price decline over the last year (-12.82%).
• The erosion-risk score indicates "mild price erosion."
Beginner takeaway
When studying HOMZ, remember that share prices can go up or down. While the fund pays out regular cash distributions, the price of the shares themselves has decreased over the last year. Always look at both the price return and the total return to get a full picture of how an ETF is performing.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | THE HOME DEPOT INC | HD | 3.05% |
| 2 | LOWE'S COMPANIES INC | LOW | 2.84% |
| 3 | TAYLOR MORRISON HOME CORP | TMHC | 1.71% |
| 4 | MERITAGE HOMES CORP | MTH | 1.69% |
| 5 | KB HOME | KBH | 1.67% |
| 6 | M/I HOMES INC | MHO | 1.60% |
| 7 | GREEN BRICK PARTNERS INC | GRBK | 1.56% |
| 8 | TOLL BROTHERS INC | TOL | 1.56% |
| 9 | PULTEGROUP INC | PHM | 1.54% |
| 10 | NVR INC | NVR | 1.53% |