2 Innovative Real Estate ETFs

Running length 00:15:25

In this episode of ETF spotlight, we focus on two very innovative real estate and housing ETFs. In the first part, my guest is Alexi Panagiotakopoulos, co-founder of Fundamental Income, and in the second part, I speak with Alex Pettee, president of Hoya Capital Real Estate.

The NETLease Corporate Real Estate ETF (NETL - Free Report) --the first net lease REIT ETF--made its debut in March this year. It has significantly outperformed the most popular REIT ETF—the Vanguard Real Estate (VNQ - Free Report) since its inception.

A net lease is a lease agreement between the property owner and the tenant in which the tenant is responsible for paying both the rent and most of the property expenses.

The ETF follows a modified market-cap weighted index that includes 24 companies that own more than 23,000 properties across all 50 states leased to tenants operating in a variety of industries.

Its top holdings are STORE Capital (STOR - Free Report), Realty Income (O - Free Report) and National Retail Properties (NNN - Free Report).

The Hoya Capital Housing ETF (HOMZ - Free Report) holds 100 companies involved in the housing industry including residential REITs, homebuilders, home improvement companies, and real estate services and technology firms. Lowe's (LOW - Free Report) and Home Depot (HD - Free Report) are its top holdings.

How does HOMZ differ from the existing home building and real estate ETFs like the iShares U.S. Home Construction ETF (ITB - Free Report), and the Vanguard Real Estate (VNQ - Free Report)?

Real Estate is one of the best performing sectors this year, thanks mainly to low-interest rates. How will rising rates impact housing and real estate ETFs?

Tune into the podcast to learn more about these ETFs.

Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and ...

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