The last six-to-eight months have seen a handful of new, income-focused ETFs hit the market. I think these funds give investors attractive and conservative investment options. Their dividend yields are in the 6%–7% range, with lots of potential for dividend growth.
One interesting aspect of these new funds is that each uses a different investment strategy to achieve a similar investment goal. It will be interesting to watch and compare the performance of these new ETFs.
And now, another ETF of this category has hit the market…
The Home Appreciation U.S. REIT ETF (HAUS) started trading on March 1. When I saw the news about the new fund, I got on the phone with Armada ETF Advisors Managing Director David Auerbach to chat about the company’s new fund. I subscribe to Dave’s REIT-news-focused newsletter, and we went to dinner at a recent MoneyShow. Dave is my go-to guy for REIT-related information.
As the name indicates, HAUS invests in REITs focused on residential living. The residential REIT sector subdivides into four subsectors:
- Multifamily housing
- Single-family rental housing
- Manufactured housing
- Senior housing
The HAUS ETF will be actively managed. Armada put together a board of directors with decades of experience in REIT operations and analysis. The board will help the portfolio manager allocate to those subsectors and individual REITs with the highest potential returns.
According to Auerbach, experts in the housing field predict the U.S. will need millions of new housing units in the coming years. With higher interest rates, it will be more challenging for first-time buyers to get into homeownership, which means the potential buyers will stay as renters for longer.
Also affecting housing inventory and prices are the new migrations triggered by individual state reactions to the pandemic and state tax policies.
The current housing shortage will continue, which will lead to higher rental rates across the first three of these subsectors. Senior housing had its own set of problems with the pandemic and can be viewed as a post-pandemic play.
Because of that, I have added HAUS shares to my brokerage account, where I have now purchased seven income growth-focused ETFs so I can compare their returns over time. Now, I also have a list of more than 30 high-yield dividend stocks that I’ve personally vetted. Along with my 36-month plan, those stocks can turn your investment or retirement portfolio into an income-generating machine – and even pay your bills for life! Click here for the details.