On the back of strong year-to-date inflows and investors’ desire to access 5G concepts, the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR) is notching new milestones.
Thanks to the nearly $82 million in 2020 inflows, SRVR recently topped $300 million in assets under management. To be precise, SRVR has $301.77 million in assets as of Feb. 25, according to issuer data.
The Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF is a strategy-driven ETF that aims to offer investors exposure to U.S. companies that generate the majority of their revenue from real estate operations in the data and infrastructure sector. There are significant real estate demands associated with the 5G rollout, enhancing the 5G ETF status of the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF. Data and infrastructure real estate investment trusts (REITs) are pivotal pieces of the 5G puzzle and SRVR is the only fund explicitly dedicated to those REITs. With an expense ratio of 60 basis points, the ETF also offers dividends as a source of income to investors.
“There’s more to the SRVR story. In addition to being a realistic 5G ETF, the fund touches another booming theme: cloud computing,” according to InvestorPlace. “All those data centers that are powered by high-flying semiconductor makers require space, and lots of it. Rising demand for data consumption and cloud storage are two of the most pivotal factor seen driving members of SRVR’s underlying index.”
SRVR Serves Up Returns
Dating back to at least early 2019, SRVR has been a dominant force in terms of real estate investment trust (REIT) ETF returns.
Over the past 12 months, SRVR is higher by 36% while the MSCI US REIT Index is up just over 13%.
The possible applications of 5G technologies are only in the exploration stages, and the possibility of returns is uncertain and may not be realized soon. Nonetheless, it presents an opportunity that could see early adopters reap the benefits, especially if the technology is utilized to its fullest capabilities.
5G technology will use a higher frequency band versus the current 4G technology standard, resulting in faster transmission of data. Being able to transmit copious amounts of data at a faster rate is certainly of benefit for wireless companies and their users, but 5G could be a major disruptor in various industries.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.