Nuveen Adds REITS ETF Focusing on Short-Term Leases

Components are also weighted by float-adjusted market capitalization where no single REIT can make up more than 5% of the index as of any rebalance in March, June, September and December.

Top holdings include Mid-America Apartment communities 7.5%, Host Hotels & Resorts 5.5%, Essex Property Trust 5.0%, Public Storage 4.9% and Equity Residential 4.9%.

“As short-term REITS have historically outperformed the broad U.S. listed REIT universe in times of rising interest rates, we are pleased to offer investors exposure that is unique to the ETF marketplace,” Martin Kremenstein, Managing Director and Head of Exchange-Traded Funds at Nuveen, said in a note.

These types of shorter-term REITs may be a good way for income-minded investors access yield generation in a rising rate environment as short-term contracts allow businesses to more quickly reprice and adapt to changing market environments. Due to the REITs structure that allows the majority of revenue to be distributed as income to shareholders, businesses’ prudent reactions could translate to higher returns for investors.

For more information on new fund products, visit our new ETFs category.