Investors interested in the real estate investment trusts segment may look to ETF strategies that provide targeted exposure to the areas with the most opportunity.
“When you say real estate or you say REITs, you traditionally think index, and if you want industrials, but don’t want residential, you still have to take some of the residential,” Phil Eichinger, Senior Vice president of Pacer ETFs, said at the 2018 Morningstar Invest Conference.
With traditional index-based REITs funds, investors will have to take all of the REITs exposure since the individual sub-sectors are all grouped together. However, Pacer has come out with more targeted sub-sector exposures.
Pacer ETFs recently launched the Pacer Benchmark Industrial Real Estate SCTR ETF (NYSEArca: INDS), Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (NYSEArca: SRVR) and Pacer Benchmark Retail Real Estate SCTR ETF (NYSEArca: RTL).
These new real estate focused ETFs help investors gain exposure to the growing e-commerce space by investing in data center and distribution center REITs, along with higher quality retail real estate.