REX HOOD Growth & Income ETF (HOII) seeks to provide both capital appreciation and income generation by investing in companies that demonstrate strong growth potential while maintaining dividend-paying capabilities. This dual-mandate strategy targets stocks that combine earnings growth characteristics with sustainable dividend yields.
How It Works
The fund employs an active management approach to select companies that meet specific growth and income criteria, including consistent earnings growth, strong return on equity, and reliable dividend payment history. Portfolio construction balances growth-oriented stocks with dividend-paying equities across market capitalizations. The management team conducts fundamental analysis to identify undervalued companies with both growth prospects and income generation potential, rebalancing positions based on changing market conditions and company fundamentals.
Key Features
- Dual-mandate approach combining growth and income objectives in a single ETF, eliminating need for separate allocations
- Recently launched in November 2024, offering modern portfolio construction with current market opportunities and valuations
- Zero expense ratio structure provides cost-effective access to professional active management without ongoing fees
Risks
- This ETF can lose value if growth companies experience earnings disappointments or dividend-paying stocks cut distributions during economic downturns, potentially declining 20-30%
- Active management risk means fund performance depends heavily on manager stock selection skills, potentially underperforming passive growth or income alternatives
- Newly launched fund lacks performance history and may experience higher volatility as portfolio strategy becomes established in various market conditions
Who Should Own This
Best suited for moderate-to-aggressive investors with 3-7 year time horizons seeking both growth and income in a single holding. Medium-to-high risk tolerance required due to equity volatility and active management uncertainty. Works as satellite allocation (10-20% of portfolio) for investors wanting professional dual-mandate exposure without separate growth and dividend ETF purchases.