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2 Innovative Real Estate ETFs

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  • (1:20) - What Is Net Lease Real Estate?
  • (5:10) - Why Should Consider These Types of Funds?
  • (9:50) - Understanding The Top Holdings Within Net Lease Corporate Real Estate ETF: NETL
  • (12:20) - What Impact Will Rising Interest Rates Have On REITs?
  • (14:45) - Hoya Capital Housing ETF: HOMZ
  • (20:50) - How Has The Housing Sector Been Performing? 
  • (25:00) - What Is The Long Term Outlook For The Housing Sector?
  •             Podcast@Zacks.com

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 which 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 , 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 homebuilding 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.

Make sure to be on the lookout for the next edition of ETF Spotlight. If you have any comments or questions, please email podcast@zacks.com.

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