• Alex Pettee, CFA

Our team at Hoya Capital is graciously honored to highlight that the Hoya Capital Real Estate's recent ETF launch was named the Most Successful & Innovative ETF Launch of 2019 by ETF Express! Additionally, our ETF was just named one of five finalists for the upcoming 2019 ETF.com Awards in three categories including Best New Equity ETF and Most Innovative New ETF. Hoya Capital was also named a finalist for New ETF Issuer of the Year!

ETF Express Award Methodology

Awards are based on a “peer review system” whereby ETF Express readers – including institutional and high net worth advisors, managers, and other industry professionals at fund administrators, prime brokers, custodians, and advisers – are invited to elect a “best in class” in a series of categories via an online survey. There were 1,202 votes cast in total. ETF Express worked with Algo-Chain to pre-select ETF Providers in each category based on investment performance during the twelve month period of May 2018-May 2019 leading up to the award selection. Subjective categories did not have pre-selected categories. In each category, the firms with the most votes at the end of the voting period are subject to a final review by ETF Express’s Senior Editorial team. Awarded on October 24, 2019. 

 

ETF.com Award Methodology

Winners are selected in a three-part process designed to leverage the insights and opinions of leaders throughout the ETF industry. Step 1: The awards process began with open nominations, which started Dec. 4, 2019, and closed Jan. 4, 2020. Step 2: Following the open nominations process, the ETF.com Awards Nominating Committee—made up of ETF.com editorial staff—reviews nominations. Nominations are screened for eligibility (appropriate timing and category). If more than five unique entries are received in the nominations process, the members of the Nominating Committee will force-rank their top five, resulting in a final slate for each category. Votes will be resolved on a majority basis, and ties broken where possible with head-to-head runoff votes. If ties cannot be broken, more than five finalists are allowed. The Nomination Committee completed its work by Jan. 10, 2020. Shortly thereafter, the nominees were be published on ETF.com. Step 3: Winners among these finalists will be selected by a majority vote of the ETF.com Awards Selection Committee, a group of independent ETF experts from across the ETF community. Committee members will recuse themselves from voting in any category in which they or their firms appear as finalists. Ties will be decided where possible with head-to-head runoff votes. Voting will be complete by Jan. 31, 2019, but results will be kept confidential until they are announced in March, and published in the April ETF Report.

  • US equity markets continued to roll this week with fresh records across the major indexes, powered by "Goldilocks" economic data and resolutions on the U.S.-China trade deal and the USMCA.

  • With gains of more than 2.5%, it was the best week for REITs in nearly a year. Homebuilders surged 4.5%, leading the S&P 500 to gains of 1.9%.

  • The US housing market picked up in 2020 where it left off in 2019 with signs of continued reacceleration. Housing starts surged to 13-year highs while homebuyer traffic climbed to 20-year highs.

  • It was a strong holiday season for retailers. Total retail sales recorded 3.6% growth for full-year 2019. Brick and mortar sales, however, slowed to 2.1% growth following a strong 2018.

  • Despite indications of a pick-up in economic activity, inflationary pressures remain muted, as Core CPI and PPI came in cooler than expected in December. Core CPI ex-Shelter is higher by just 1.5%.

To continue reading, click here to visit Seeking Alpha!

  • Alex Pettee, CFA

The US housing market picked up in 2020 where it left off in 2019 with signs of continued reacceleration, highlighted by Housing Starts data on Friday which surged to 13-year highs. The strong end of 2019 for home construction comes after one of the worst eight-to-twelve month periods for home construction since the financial crisis. For the US housing industry, the story of the last twelve months continues to center around the resilient demographic-led growth in household formations along with the sharp pullback of the 30-year fixed mortgage rate, which has stimulated renewed activity across nearly all segments of the housing industry.

The US Census Bureau reported that housing starts rose to a 1.61 million-unit rate in December, coming in far above estimates of 1.38 million. Helped by unseasonably warm weather in December, the monthly rate of Housing Starts jumped 40% year-over-year and ended 2019 with full-year growth of 3.2%, a rather remarkable feat given the dismal data earlier in the year. The gains were broad-based with single-family rising for the seventh consecutive month and multifamily showing continued signs of reacceleration as well. The rate of single-family starts jumped 29.6% year-over-year in December and ended 2019 with full-year gains of 1.4%. The rate of multifamily starts, meanwhile, jumped 74.6% in December and ended the year with full-year gains of 7.8%.

This report is consistent with yesterday's homebuilder sentiment data. Homebuilders are just about as confident as ever, according to data released on Monday morning from the National Association of Homebuilders (NAHB). With a reading of 75, the Housing Market Index remained near the highest level in 20 years, down one point from last month's high of 76. (Readings above 50 are positive) Among the three subcomponents, Current Sales declined two points to 84, Futures Sales remained steady at 79, and Buyer Traffic hit all-time record highs at 58, up 1 point from December.

Bottom Line Strong housing data has been very welcome news not only for the single-family homebuilders but for the housing-related industries that are feeling the "multiplier" effects of new home construction and existing home turnover. Through the first 2+ weeks of 2020, Homebuilders have jumped nearly 10%, leading the Hoya Capital Housing Index's gains of 3.3% YTD. REITs are higher by 2.0% so far this year, slightly underperforming the S&P 500's gains of 3.0%. 

For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Apartments, Homebuilders, Student Housing, Single-Family Rentals, Manufactured Housing, Cell Towers, Healthcare, Industrial, Data Center, Malls, Net Lease, Shopping Centers, Hotels, BillboardsOffice, Storage, Timber, and Real Estate Crowdfunding.