Hoya Capital High Dividend Yield ETF: A High Dividend Yield ETF for Investors

The Hoya Capital High Dividend Yield ETF is a popular choice for investors seeking a high dividend yield. It offers a unique blend of dividend-paying stocks and real estate investment trusts (REITs) to provide a consistent stream of income.

With a focus on high dividend yields, this ETF is designed to generate attractive income for investors. By investing in a diversified portfolio of dividend-paying stocks and REITs, investors can benefit from a steady income stream.

The ETF's investment strategy is centered around identifying companies with a history of paying consistent dividends. By doing so, investors can enjoy a relatively stable income stream, even in times of market volatility.

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The Hoya Capital High Dividend Yield ETF (RIET) is a passively managed ETF that tracks the Hoya Capital High Dividend Yield index. It was launched in 2021 by Hoya Capital Real Estate.

The fund has a diversified portfolio of 100 high-dividend-paying US-listed common and preferred stocks of REITs and real estate operating companies. This is based on the Hoya Capital High Dividend Yield index.

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Hoya Capital High Dividend Yield ETF has a management team with an average tenure of 2.23 years, consisting of Dustin Lewellyn, Ernesto Tong, and Christine Johanson. Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has a primary benchmark of the Hoya Capital High Dividend Yield USD index, with a weighting of 100%. It has 104 securities in its portfolio, with the top 10 holdings constituting 17.1% of the ETF's assets.

Here's a breakdown of the ETF's allocation:

The ETF has a trailing dividend yield of 9.47%, which is above the 4.10% category average. It normally distributes its dividend income monthly.

The Hoya Capital High Dividend Yield ETF offers a range of dividend payments throughout the year.

The ex-dividend dates are scattered throughout the year, with the most recent one being December 17, 2024.

You'll receive a dividend payment of $0.0855 on December 18, 2024, if you're a shareholder as of the ex-dividend date.

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Here's a breakdown of the dividend payments:

The pay dates are just one day after the ex-dividend dates, so be sure to mark your calendar accordingly.

The Hoya Capital High Dividend Yield ETF offers a unique investment strategy that focuses on high dividend-yielding stocks. This approach can help investors generate regular income and potentially ride out market downturns.

The fund's investment strategy involves selecting a portfolio of high dividend-yielding stocks with a strong track record of paying consistent dividends. This can help investors benefit from the stability and growth potential of dividend-paying stocks.

By focusing on high dividend-yielding stocks, the fund aims to provide a competitive dividend yield compared to other ETFs in the market. This can be attractive to income-seeking investors looking for a regular source of returns.

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If you're looking to invest in REITs, you have a couple of options to consider.

One option is the Cohen & Steers Quality Income Realty Fund, which is a great way to tap into the potential of REITs.

Retail investors should consider REITs in their portfolios for diversification and income streams.

Another option is the Hoya Capital High Dividend Yield ETF, which offers a diversified portfolio of mostly higher-yielding REITs.

Hoya Capital created REIT ETFs in response to subscriber demand for higher yielding products.

This ETF provides a stable, predictable monthly distribution with a level payout policy, making it an attractive choice for those seeking regular income.

REIT investments have been impacted by higher interest rates, creating buying opportunities for investors.

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If you're reaching retirement age, there is a good chance that you're looking for a reliable way to generate income. Dividend stocks can be a great option, offering a potentially higher return than annuities.

Dividend stocks can provide a regular income stream, with many established companies paying consistent dividends year after year. This can be especially appealing in retirement when you need predictable income to support your lifestyle.

Investing in dividend stocks requires some research and patience, but it can be a smart move for retirees. By investing in a diversified portfolio of dividend stocks, you can potentially earn more than you would with an annuity.

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The Hoya Capital High Dividend Yield ETF has a portfolio turnover rate of 34%, which is slightly lower than the average for the Real Estate category.

This relatively low turnover rate suggests that the fund holds its assets for a longer period, potentially reducing expenses and increasing after-tax returns. In contrast, high portfolio turnover can lead to higher expenses and lower returns.

In November 2024, the fund returned 2.2%, earning it a grade of F, as the Real Estate category had an average return of 3.5%.

The fund's expense ratio is 0.50% of its assets under management (AUM), which is within the range of 0.07% to 4.72% for the Real Estate category.

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High portfolio turnover can significantly impact your expenses and returns. Hoya Capital High Dividend Yield ETF has a portfolio turnover rate of 34%, which means it holds its assets for around 0.0 years.

The average portfolio turnover for the Real Estate category is 35%. This suggests that Hoya Capital High Dividend Yield ETF is slightly lower than the average.

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In November 2024, the Hoya Capital High Dividend Yield ETF returned 2.2%, earning it a grade of F. This is because the Real Estate category had an average return of 3.5%.

The letter grades of A, B, C, D, and F are based on relative rankings within the investment category. A grade of A would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

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Operational fees can add up quickly, so it's essential to understand what you're paying for. The expense ratio, for instance, is a significant 0.50% of the fund's assets under management (AUM).

The expense ratio is a broad term that encompasses various fees, including the management fee. In this case, the management fee is also 0.50% of AUM, which is a relatively standard rate.

Here's a breakdown of the operational fees:

Keep in mind that the 12b-1 fee is not applicable in this case, and the administrative fee is relatively low, at 0.01% of AUM.

Pettee Investors Inc. has a significant stake in Hoya Capital High Dividend Yield ETF, owning approximately 1.04% of the company's stock.

The fund, Pettee Investors Inc., recently raised its position in Hoya Capital High Dividend Yield ETF stock by 17.5% during the fourth quarter.

This increase in stake is notable, as it demonstrates the fund's confidence in the company's potential for growth.

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The RIET Hoya Capital High Dividend Yield ETF has underperformed since its inception.

It's invested in all 14 subsectors of REITs, aiming for a long-term dividend yield of 8-10%.

The fund's performance is still too early to tell, making it a tough call for investors to decide on its potential.

The grades for the RIET ETF are a mixed bag. The fund has returned 8.0% year to date, which is 5.0 percentage points worse than the category, earning it a grade of F.

The ETF's performance over the past year is also underwhelming, with a return of 19.2% that translates to a grade of D. Over the past three years, the fund has lost 1.2% of its value, resulting in an F grade.

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Here's a breakdown of the ETF's grades over different time periods:

The ETF's NAV return has been consistently lower than its price return over the past year, with a difference of -0.282% in 2024. This suggests that the fund's performance has been influenced by factors other than its underlying investments.

The Real Estate Average has outperformed the ETF in most time periods, with a return of 13.0% in 2024 compared to the ETF's 8.0%. This highlights the ETF's underperformance relative to its category.

The ETF's tax-cost ratio is 3.9% for the past year, which is relatively high compared to other funds in the category. This may impact the fund's after-tax returns and should be considered by investors.

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Category ratings can be a bit tricky to understand, but essentially they measure how a fund performs compared to its peers.

The fund in question falls into the 80th to 100th percentile category, which is rated as "High". This means it's performing exceptionally well compared to other funds in its category.

Here's a breakdown of the category ratings:

Understanding these ratings can help you make informed decisions about your investments.

Institutional investors are taking notice of Hoya Capital High Dividend Yield ETF, with Pettee Investors Inc. recently increasing its stake in the company by 17.5% during the fourth quarter.

This significant investment is reflected in the fund's ownership of 27,440 shares of the company's stock after buying an additional 4,080 shares during the quarter.

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Narrow focus on dividend yield may lead to poor security selection. This is a risk associated with the Hoya Capital High Dividend Yield ETF.

The RIET ETF, also managed by Hoya Capital, focuses on high yielding REITs across various market cap segments. This suggests that Hoya Capital may have a similar approach to security selection.

A narrow focus on dividend yield can cause investors to overlook other important factors, such as a company's financial health or growth prospects. This is a potential pitfall that investors should be aware of.

The Hoya Capital High Dividend Yield ETF's focus on high yielding REITs may also lead to a concentration of risk in the real estate sector. This is a concern for investors who want to diversify their portfolios.

Investors should carefully consider the potential risks and rewards of investing in the Hoya Capital High Dividend Yield ETF.

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