HOMZ vs PKB

HOMZBHoya Capital Housing ETF

PKBCInvesco Building & Construction ETF

In short

HOMZ Most housing ETFs pick a lane: homebuilders or apartment REITs. HOMZ buys the whole chain, landlords, builders, home-improvement retailers and housing finance and tech names, sizing each segment by its share of GDP.

PKB Not a homebuilder tracker. PKB has run a rules-based screen since 2005, ranking US builders, engineers and construction firms on momentum, quality and value, then holding roughly 30 of them.

Stated mandate

HOMZ The Fund seeks to track the performance of the Hoya Capital Housing 100TM Index before fees and expenses.

PKB The Fund seeks to track the performance of its designated underlying index before fees and expenses. It is an index fund that invests primarily in securities comprising that index and is not actively managed.

Why people hold it

• HOMZ Four housing segments in one ticker: rental operators, builders, home improvement and furnishings, and housing finance, tech and services, each sized by its contribution to GDP rather than market cap.sec.gov
• The 2019 original: launched as the first ETF offering diversified exposure across the entire US housing sector, and still tracking the index its adviser built.prnewswire.com
• 0.30% a year, below the 0.45% median for its index-tracking peers, on an index reconstituted and rebalanced on a set schedule each June and December.sec.govsec.gov 2
• Distributions arrive monthly rather than quarterly, a cadence more common among bond funds than equity sector funds.

• PKB The index scores companies on price momentum, earnings momentum, quality, management action and value, so the lineup follows a model's ranking rather than sheer market cap.invesco.com
• Trading since 2005, it has a live record stretching across the housing bust and the rebuild that followed, which is rare on the construction shelf.
• The net is wider than houses: builders plus the engineering and construction outfits behind commercial buildings and large-scale infrastructure are all eligible.invesco.com
• Rebalanced and reconstituted on a set quarterly schedule, so the roster refreshes with the model instead of drifting for years.invesco.com

Worth knowing

• HOMZ A small, thinly traded fund. Spreads can run wider than on mega-cap index trackers, and small funds carry more risk of being closed or repositioned.
• One industry, roughly 100 stocks. Housing moves with mortgage rates and construction cycles, so this can drift well apart from a broad market fund.
• Cheap for a themed index fund, still a multiple of plain broad-market trackers: SCHK charges 0.03% and VT 0.06%.

• PKB The 0.57% expense ratio sits well above the 0.20% median of its peer cohort. That is the price tag on a screened, narrow-industry portfolio.
• About 30 stocks in one cyclical industry: individual names and the building cycle swing this fund far more than a broad US equity fund.
• It is thinly traded next to the giant sector ETFs, so spreads and trade timing carry more weight than they would on a heavily traded fund.

Full HOMZ profile⁠

Full PKB profile⁠