The Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR) is one of the best-performing real estate ETFs again this year and there are plenty of favorable fundamentals boosting the case for this fund.
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.
“Many of the sector ETFs for the real estate group are prosaic, if not boring, but that has started to change a bit in recent years. The Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF is one of the funds leading that change. More importantly, SRVR is a the center of some pivotal, long-term, technological disruption,” reports InvestorPlace.
Best of Breed
SRVR is home to cell tower REITs, data center REITs, and similar facilities – these cell towers and data processing centers store the information and handle the orders that start the e-commerce process, making the fund a diverse play on some of the most important emerging technological themes.
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. Additionally, there’s an element of environmentally responsible investing with data centers.
SRVR 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. It relies on dividends and REIT income and invests in a variety of tech infrastructure companies.
“SRVR yields 1.65%, which is low among REIT ETFs, but data center REITs aren’t among this year’s REIT dividend offenders of which there are plenty. In 2020, there have been 36 REIT dividend suspensions and 26 cuts, but the bulk of that negative action is centered in sub-groups SRVR provides no exposure to,” according to InvestorPlace.
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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.
