The housing market in the U.S. is a tough one to read right now. Home prices have soared over the past few years -- even though mortgage rates have risen significantly -- and made buying real estate less affordable.

In addition, inventory is at historic lows in many U.S. markets, with little relief in sight. If you're looking to invest in the housing market, it can be difficult to find cash-flowing rental properties to buy.

Not only that, but directly owning investment properties isn't a good idea for everyone. Even if you own a profitable rental property, cash flow can be inconsistent, and it's a much more hands-on type of investment than stocks, ETFs, or mutual funds.

One alternative is to invest in the housing market through stocks. However, many investors are hesitant to put their money in just one company. Should you buy an apartment real estate investment trust (REIT)? If so, one that focuses on urban or suburban markets? Should you buy a single-family housing REIT?

If you want exposure to the housing market but aren't sure which stock to choose, you may want to consider an exchange-traded fund (ETF) -- specifically, the iShares Residential and Multisector Real Estate ETF (REZ -0.41%).

About the ETF

The iShares Residential and Multisector Real Estate ETF is the most residential-concentrated major real estate ETF in the market. In addition to its residential exposure, the "multisector" part of the name refers to investments in healthcare and self-storage real estate, as well.

The ETF owns 45 different investments, as of the latest available information. Of the top 10 by portfolio weight, six are residential REITs, two are healthcare, and two are self-storage. The top holdings in the residential space include the urban-focused apartment giants AvalonBay Communities and Equity Residential, single-family REIT Invitation Homes, and Sun Belt-focused apartment REIT Mid America Apartment Communities.

The idea is that you'll have exposure to both the single-family and multifamily residential housing markets and a wide variety of geographic locations. You'll also have the benefit of diversification with the healthcare and self-storage exposure.

But there are a couple of key points to know. First, over the past three years, the fund's beta has been 0.84. Beta is a measure of how volatile a stock or ETF is, compared with the S&P 500. The short explanation is that a beta below 1 indicates a below-average level of volatility. In short, the iShares Residential and Multisector Real Estate ETF isn't likely to subject you to violent price fluctuations.

Second, like other ETFs, this fund passes through the dividends paid by its underlying investments and is a solid income play. Based on the share price as of this writing, the ETF has a dividend yield of about 3.3%.

Costs to consider

Like any ETF, the iShares Residential and Multisector Real Estate ETF has investment expenses. And the fund's expense ratio of 0.48% is significantly higher than many other index funds. If you invest $1,000 in this ETF, your annual investment expenses will be $4.80.

However, there are a few things to keep in mind. For one, while this is an index fund (as opposed to an actively managed ETF), it's a highly specialized one. As a general rule, the more focused an ETF's investment objectives, the more you're going to pay.

Second, it's the only major ETF in the public markets that's concentrated in residential real estate, so there are no lower-cost alternatives. (Although you could construct a weighted portfolio of residential, healthcare, and self-storage REITs yourself.)

The bottom line

The iShares Residential and Multisector Real Estate ETF isn't the cheapest ETF out there but can give you exposure to several of the best-run housing REITs in the market, as well as some of the most rock-solid REITs in self-storage and healthcare. If you're looking for broad exposure to the U.S. housing market in your stock portfolio, it could be worth a closer look.