How does the HAUZ ETF select its holdings?

The HAUZ ETF's holdings are selected using an integrated investment approach that combines long-term drivers of expected returns identified through research, portfolio design, portfolio management, and trading functions. The fund focuses on companies of all sizes, with increased exposure to smaller capitalization, lower relative price, and higher profitability companies in the International Universe.

What is the International Universe for the HAUZ ETF?

The International Universe, as defined by the Advisor, represents a market capitalization-weighted set of non-U.S. companies in developed markets that have been authorized as approved markets for investment by the Advisor's Investment Committee.

How does the HAUZ ETF consider sustainability impact in its investment decisions?

The HAUZ ETF takes into account the impact that companies may have on the environment and other sustainability considerations. It may exclude or underweight securities of companies that are considered less sustainable compared to others in its investment universe. Conversely, it may overweight securities of companies that are deemed more sustainable based on various factors such as greenhouse gas emissions intensity, fossil fuel reserves, land use, water use, social controversies, and more.

Does the HAUZ ETF use derivatives or foreign currency transactions?

Yes, the HAUZ ETF may gain exposure to approved market companies through purchasing equity securities in the form of depositary receipts. Additionally, it may use futures contracts and options on futures contracts for foreign or U.S. equity securities and indices, and may enter foreign currency exchange transactions to manage exposure to foreign currencies.

5 min read

By Beqa Bumbeishvili, ETF Insider

What is the HAUZ ETF ?

In the world of finance, Exchange-Traded Funds (ETFs) have gained immense popularity as versatile investment instruments. One such ETF that has caught the attention of investors is the HAUZ ETF. In this article, we will delve into the details of the HAUZ ETF, exploring its overview, underlying and exposure, benefits, and considerations before investing.

HAUZ ETF Overview:

The HAUZ ETF follows a passive or indexing investment approach, aiming to mirror the performance of the Underlying Index. This index is a free-float capitalization weighted representation of publicly traded real estate securities from various countries outside the United States, excluding Pakistan and Vietnam. The ETF uses a representative sampling indexing strategy, investing in a sample of securities that resemble the characteristics of the entire Underlying Index. As of July 31, 2022, the Underlying Index comprised 641 securities with an average market capitalization of approximately $1.443 billion and a minimum market capitalization of approximately $3.7 million. It included securities from countries such as Australia, Canada, China, France, Germany, Japan, and the United Kingdom, among others.

HAUZ ETF Underlying and Exposure: What Does It Track and How?

As mentioned earlier, the HAUZ ETF is primarily focused on real estate securities from countries outside the United States. It invests at least 80% of its total assets in component securities (including depositary receipts) of the Underlying Index. The ETF's underlying index consists of equity real estate investment trusts (REITs) from companies incorporated outside the United States, excluding Pakistan and Vietnam. The ETF is designed to reconstitute and rebalance its portfolio in line with the changes in the Underlying Index's constituents, which occur quarterly. This ensures that the ETF's performance aligns with the performance of the index it tracks.

HAUZ overlap What is the HAUZ ETF ?

HAUZ ETF: Benefits to Invest in This ETF

Investing in the HAUZ ETF offers several benefits for investors. As a real estate-focused ETF with global exposure, it provides a convenient and diversified way to gain access to international real estate markets. This diversification can help mitigate risks associated with investing in a single real estate market. Moreover, the ETF's passive investment strategy keeps costs relatively low compared to actively managed funds. Additionally, its focus on real estate securities can provide investors with an opportunity to participate in the potential growth of the global real estate sector.

: HAUZ ETF Considerations Before Investing

While the HAUZ ETF offers numerous advantages, investors should be aware of some key considerations before adding it to their portfolio. Firstly, as with any investment in real estate securities, the performance of the ETF can be influenced by factors such as changes in global economic conditions and interest rates. Secondly, the ETF's concentration in the real estate sector exposes it to risks associated with that specific industry. Investors should carefully assess their risk tolerance and diversification needs before investing in the HAUZ ETF.

Conclusion:

The HAUZ ETF provides investors with an opportunity to gain exposure to international real estate markets through a passive investment approach. Its focus on global real estate securities and cost-efficient structure make it an attractive option for those looking to diversify their investment portfolios. However, as with any investment, thorough research and consideration of individual financial goals and risk tolerance are essential.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The content presented here does not provide any investment advisory services.

Sources:

HAUZ ETF issuer
HAUZ ETF official page

HAUZ quote and analysis

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FAQ

What is the HAUZ ETF?
The HAUZ ETF, also known as the International Sustainability ETF, is an actively managed exchange-traded fund that aims to provide investors with exposure to a broad and diverse group of non-U.S. companies in developed markets, while incorporating sustainability impact considerations in its investment decisions.
How does the HAUZ ETF select its holdings?
The HAUZ ETF's holdings are selected using an integrated investment approach that combines long-term drivers of expected returns identified through research, portfolio design, portfolio management, and trading functions. The fund focuses on companies of all sizes, with increased exposure to smaller capitalization, lower relative price, and higher profitability companies in the International Universe.
What is the International Universe for the HAUZ ETF?
The International Universe, as defined by the Advisor, represents a market capitalization-weighted set of non-U.S. companies in developed markets that have been authorized as approved markets for investment by the Advisor's Investment Committee.
How does the HAUZ ETF consider sustainability impact in its investment decisions?
The HAUZ ETF takes into account the impact that companies may have on the environment and other sustainability considerations. It may exclude or underweight securities of companies that are considered less sustainable compared to others in its investment universe. Conversely, it may overweight securities of companies that are deemed more sustainable based on various factors such as greenhouse gas emissions intensity, fossil fuel reserves, land use, water use, social controversies, and more.
Does the HAUZ ETF use derivatives or foreign currency transactions?
Yes, the HAUZ ETF may gain exposure to approved market companies through purchasing equity securities in the form of depositary receipts. Additionally, it may use futures contracts and options on futures contracts for foreign or U.S. equity securities and indices, and may enter foreign currency exchange transactions to manage exposure to foreign currencies.

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