Hoya Capital Real Estate – a US-based ETF Express award-winning ETF issuer and research-focused investment adviser has launched its second fund, Hoya Capital High Dividend Yield ETF (Ticker: RIET).
The firm writes that the RIET tracks the Hoya Capital High Dividend Yield 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 with the yield as of 8/31/2021 at 6.70 per cent.
The launch of RIET follows the successful launch of Hoya Capital Housing ETF (Ticker: HOMZ), which was awarded the “Most Innovative & Successful ETF Launch” of 2019 by ETF Express.
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.
“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,” says 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 says: “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,” says Professor Morris.
Hoya Capital also announced a fee waiver for RIET, lowering the net expense ratio to 0.25 per cent from 0.50 per cent until at least September 30, 2022.
“For investors seeking income in a simple and cost-effective package, we believe RIET fills a significant and immediate investor need,” concludes Hoya Capital CEO Sheila Pettee, CFA.
“When investing in real estate, investors should remember ‘I before E’ in RIET because Income Comes First.”