Nuveen Adds REITS ETF Focusing on Short-Term Leases

Nuveen has been slowly growing its NuShare line of exchange traded funds, adding a real estate investment trust option that targets short-term leases.

On Tuesday, Nuveen rolled out the NuShares Short-Term REIT ETF (BATS: NURE). NURE has a 0.35% expense ratio.

The NuShares Short-Term REIT ETF tries to reflect the peformance of the Dow Jones U.S. Select Short-Term REIT Index, which is comprised of real estate investment trusts that invest in residential or commercial real estate with a shorter-than-average lease duration than REITs investing in other sectors.

NURE provides “access to REITs with short-term lease agreements which may be less volatile and sensitive to interest-rate changes than longer-term REIT,” according to Nuveen.

Specifically, the underlying index concentrates holdings in apartment buildings, hotels, self-storage facilities or manufactured home properties. The benchmark will also exclude mortgage REITs, hybrid REITs, certain other types of REITs, real estate finance companies, mortgage brokers and bankers, commercial home builders, large landowners and subdividers of unimproved land, and companies that have more than 25% of their assets in direct mortgage investments.

Current holdings include apartment REITs 49.9%, hotel REITs 25.3%, self storage REITs 16.3% and manufactured home REITs 8.5%.