The Indexes are weighted upon a modified free floating Enterprise Value metric that utilizes in part the Penrose square root law to provide a formal structure of normalized weighting to the Indexes, according to ETRE.
“A weighting system that incorporates Enterprise Value as the basis for an index more closely approaches the actual performance of the real estate marketplace, and provides a benchmark for single asset exchange traded property valuation,” said ETRE COO and co-founder Jesse Stein in the statement.
The indexes launched at the start of May. The statement did not mention any pending agreements with issuers of exchange traded funds for use of the indexes on new ETFs.
Full List of NASDAQ OMX ETRE REIT Indexes
ETF Trends editorial team contributed to this post.