Less than a year after coming to market, Vident Financial’s U.S. Diversified Real Estate ETF (NYSE Arca: PPTY) reached the $100 million in assets under management milestone.
To be precise, as of Friday, Feb. 8th, PPTY had $103.88 million in assets under management, according to issuer data.
PPTY’s portfolio is constructed based on the actual properties held by each company in the investment universe. The smart beta index-based ETF screens for four primary factors when investing in real estate, including location, property type, leverage and governance.
“This distinct approach allows PPTY to build a portfolio of REITs that delivers the consistent property type and geographic diversification that real estate investors typically seek. Leverage and governance criteria are further included to reduce exposure to high-risk companies,” according to a statement from Atlanta-based Vident.
PPTY celebrates its one-year anniversary on March 27, 2019.
More About PPTY
Location can affect the value of a property and is a key driver of real estate performance. Stable targets are used to diversify geographic exposure while favoring dynamic, high-growth locations.
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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