ETF Trends CEO Tom Lydon discussed the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.
SRVR is a strategy-driven exchange traded fund 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.
Lydon discussed how online buying is becoming a staple in many consumers’ lives, and is likely to only burgeon in the future with the development of 5G networks, as consumers seek to vastly increase capacity, lower latency, and heighten speeds.
“Well everybody talks about online buying. The Amazons of the world I think, more and more, financial advisors and their clients are using Amazon. They’re using Uber. They’re buying food online. Now, more and more that staples are being delivered to your office, that’s a great first step. When you think about where we’re going. We’re just getting started. Areas like online shopping for example. Online shopping online represents 10% of retail buying in the country today. It’s amazing cause when I heard that number I was blown away. I would’ve thought it would’ve been a lot more. And you know that number is gonna move north. On top of that, there’s a lot of discussion about 5G, and what that’s gonna mean as far as data, as far as our cell phones, and that type of thing. And that’s gonna continue to grow as well,” Lydon said.
Unlike other ETFs that may share an infrastructure focus, Lydon clarifies what makes SRVR unique is its online focus and discrimination.
“There are certain companies that specialize just in this, and what the folks at Pacer have done is identified companies, put them into an index, and made it available for investors through this simple ETF,” Lydon explained.
Still, for investors who are concerned they may be over-allocating their portfolios to real estate, the benefit of ETFs is the ability to look at the fund’s holdings.
“The great thing about ETFs is that it is easy to look under the hood and find out what constituents or companies make up that index. Find out what those companies are all about, then look at your current portfolio,” he said.
“If you feel that old school real estate in the form of shopping centers or corporate buildings might not be as popular as a build-out for online shopping or 5G, and you want to divest from old school and buy the future, here’s a great opportunity to consider in this simple ETF,” Lydon explained.
Listen to the SRVR ETF podcast episode here:
For more podcast episodes featuring Tom Lydon, visit our podcasts category.