Real estate and infrastructure stocks are favored for their resiliency in inflationary and rising rate environments.
Investing in real estate and infrastructure through the Goldman Sachs Future Real Estate and Infrastructure Equity ETF (GREI) can offer investors attractive yield, strong growth potential, low correlations to traditional asset classes, and inflation-hedging benefits while focusing on assets that we believe are on the right side of disruption.
GREI actively invests in global companies found in the real estate and infrastructure sectors. In seeking long-term capital growth, the fund targets the broad real estate space while zooming in on the utility industry of the infrastructure sector, according to VettaFi.
The fund utilizes a fundamental approach allowing ESG integration and selects firms based primarily on any of the key themes associated with secular growth drivers including, but not limited to, innovation, demographic shifts, experiences over things, environmental sustainability, and social sustainability. The fund also does not require the companies to derive any current or future revenue from both sectors and may hold securities of any market cap. According to VettaFi, it aims for its portfolio to have economic ties to at least three countries, including the US.
GREI draws on a deep bench of 80+ experienced investors around the world, conducting active, bottom-up security selection with a strong valuation discipline to identify real estate and infrastructure companies that facilitate the secular growth trends above.
The top holdings in the fund include National Grid plc (NG, 4.9%), American Tower Corp (AMT, 4.4%), NextEra Energy Inc (NEE, 4.3%), Transurban Group (TCL, 3.8%), Vinci SA (DG, 3.4%), Communications Corp (3.1%), Alexandria Real Estate Equities Inc (ARE, 3.0%), Equinix Inc (EQIX, 2.8%), Vonovia SE (VNA, 2.7%), and Equity LifeStyle Properties Inc (ELS, 2.5%), as of May 20, according to the firm’s website.
The fund charges a 75 basis point expense ratio.
For more news, information, and strategy, visit the Future ETFs Channel.