Due to its indexing methodology, PPTY has a greater tilt toward potential growth segments like residential and industrial real estate, whereas traditional market-cap indices favors the retail segment, which has come under greater stress due to changing consumer habits.
“The most important factors when investing in real estate aren’t a secret—location, property type, and leverage levels. We designed PPTY to provide investors a common-sense alternative to traditional cap-weighted real estate ETFs, which ignore these fundamentals.” said Fred Stoops, Head of Real Estate at Vident Financial. “If you wouldn’t buy a house without consider location, why would you own a real estate ETF that ignores something so basic?”
PPTY’s underlying index incorporates specific considerations in real estate location exposure to maximize potential growth opportunities.
From inception through the end of January 2019, PPTY returned 17.63%. PPTY charges 0.53% per year, or $53 on a $10,000 investment.
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