While SRVR is tech-centric relative to traditional real estate ETFs, the Pacer fund still serves up an impressive income stream. The fund’s dividend yield is 3.67 percent with a price-to-funds-from operations ratio of 16.57x, according to issuer data. Funds from operations, or FFO, is the common real estate investment trust (REIT) valuation metric.
“Compared to traditional REITs, it has slightly lower dividend than the FTSE Nareit All Equity REITs at 4.37% but the Price/FFO is in-line with broad-based and less expensive than core property types like industrial real estate which trades at 18.01x,” said Kelly.
More Than Just 5G
While the 5G theme is compelling and potentially durable, there is more to SRVR than just 5G. SRVR components are at the real estate forefront of other booming technology themes, including blockchain, cloud computing and Internet of Things (IoT).
As more companies devote more resources to cloud computing, cybersecurity and device connectivity, that requires more space for servers and related fare, themes SRVR components are poised to benefit from.
“The SRVR index is the foundation of technology,” adds Kelly. “Cloud computing, 5G, and other ‘themes’ are not even close to encompassing what the SRVR index represents as a foundational infrastructure for intelligence. SRVR is enabling the ‘Future Four Horsemen’ that will revolutionize our daily lives.”
*SRVR performance since inception through Dec. 31, 2018
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