The PSR ETF: A Real Estate ETF for Uncertain Times | ETF Trends

Despite a vaccine being readied for global deployment, there’s still a lot of uncertainty in the market. The real estate market is a particularly challenging place to navigate, which highlights the need for active management funds like the Invesco Active U.S. Real Estate ETF (PSR).

PSR structures and selects its investments primarily from a universe of securities that are included within the FTSE NAREIT All Equity REITs Index at the time of purchase. The selection methodology uses quantitative and statistical metrics to identify attractively priced securities and manage risk.

The Fund will invest principally in equity real estate investment trusts (REITs). Portfolio management generally conducts a security and portfolio evaluation monthly.

Of course, when it comes to active management, the question of cost is always apparent. PSR’s expense ratio comes in just at 0.35%.

PSR Chart

What’s In Store for Real Estate in 2021?

Real estate is certainly a slippery slope to climb these days with social distancing measures limiting the need for office space. Nowadays, residential homes are becoming the live/work havens of much of the population.

As an RISMedia article puts it, it’s “safe to say that 2020 threw everyone for a loop. The coronavirus pandemic has impacted the lives of billions of people worldwide, and perhaps the most surprising element of all has been how COVID has supercharged the U.S. real estate markets rather than upended them.”

“This has been a strange year. But there has been a lot of good in this year too,” said Brian Buffini, founder and chairman of Buffini & Company, at this year’s “Bold Predictions: 2021 Real Estate Market Outlook,” which was held as a virtual webcast on Dec. 8.

Nonetheless, as National Association of REALTORS® (NAR) Chief Economist Lawrence Yun puts it, the real estate market has remained resilient. With interest rates low these days, the access to borrowed capital is cheaper for would-be real estate owners.

“The housing market has shown remarkable resiliency in 2020—and 2020 is certainly a year of surprise on many fronts,” said Yun.

Can a languishing economy amidst the pandemic cause another Great Recession? That seems to be on the minds of many investors, but Yun begs to differ.

“It’s different from the Great Recession,” Yun said, noting the differences in today’s market versus those from over a decade ago. “We don’t have subprime lending that’s giving out mortgages to just anyone.”

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