Hoya Capital High Dividend Yield (RIET US) – Portfolio Construction Methodology

The underlying Hoya Capital High Dividend Yield Index provides rules-based exposure to 100 high-yielding U.S. real estate securities across common and preferred stock. The universe is U.S.-listed REITs and real estate operating companies plus their preferreds, subject to market cap and liquidity thresholds that exclude very small or thinly traded issues. Common stocks are placed into three equal-count tiers by market cap (large, mid, small) and classified into 14 property sectors. “Dividend Champions” are first selected by taking the higher-yielding of the two largest firms in each sector, then removing the two lowest-yield names and the two most levered, leaving 10 stocks. From the remaining universe, the highest-yielding REITs are chosen within each size tier, capped at six names per sector, while 30 of the 50 most actively traded preferreds with the highest yields are added. The index is reconstituted and equal-weighted within five buckets each June and December.

To explore RIET in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/RIET_US