How to Tap Tech Side of Real Estate Sector | ETF Trends

Real estate isn’t often viewed as a cyclical, yield-driven sector, but investors can harness technological advances and growth opportunities in the group with the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR).

The Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF is a strategy-driven ETF 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. There are significant real estate demands associated with the 5G rollout, enhancing the 5G ETF status of the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF.

Owing to its deep exposure to the 5G rollout theme, SRVR is handily topping traditional real estate exchange traded funds again this year.

While they are still in the early stage of implementation, 5G networks will help power a meteoric rise in the Internet of Things technology, providing the infrastructure required to carry massive amounts of data, allowing for a smarter and more connected world.

SRVR: A Super Idea

SRVR is home to cell tower REITs, data center REITs, and similar facilities – these cell towers and data processing centers store the information and handle the orders that start the e-commerce process, making the fund a diverse play on some of the most important emerging technological themes.

Data and infrastructure real estate investment trusts (REITs) are pivotal pieces of the 5G puzzle and SRVR is the only fund explicitly dedicated to those REITs. With an expense ratio of 60 basis points, the ETF also offers dividends as a source of income to investors. Additionally, there’s an element of environmentally responsible investing with data centers.

The concept is that 5G will be ubiquitous, and someday gadgets like your vacuum cleaner or lawnmower might use 5G. It’s often claimed to be one of the most important milestones in technology and, with companies like Verizon creating ads that suggest, it offers “unprecedented power” for consumers. 5G will be more reliable, faster and pervasive.

As we get ready for the next step in the telecommunications evolution, investors should be prepared for the onset of the 5G network and other technology innovations, and how it will reshape the economy.

SRVR is a strategy-driven ETF 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.

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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