Investors interested in gaining targeted exposure to the real estate space can look to Pacer Financial’s new suite of ETFs that focus on the industrial, data infrastructure and retail real estate sub-sectors.
Pacer ETFs on Wednesday launched the Pacer Benchmark Industrial Real Estate SCTR ETF (NYSEArca: INDS), Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (NYSEArca: SRVR) and Pacer Benchmark Retail Real Estate SCTR ETF (NYSEArca: RTL), which each come with a 0.60% expense ratio.
“Real estate has long been an area for diversification and income. And real estate firms and REITs have benefited from e-commerce more than many realize,” Joe Thomson, Founder and President of Pacer Financial, Inc., said in a note.
These new real estate focused ETFs help investors gain exposure to the growing e-commerce space by investing in data center and distribution center REITs, along with higher quality retail real estate.
Investing in Real Estate ETFs
INDS tries to reflect the performance of the Benchmark Industrial Real Estate SCTR Index, which is comprised of 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.
Related: How to Invest in Commercial Real Estate
SRVR tries to reflect the performance of the Benchmark Data & Infrastructure Real Estate SCTR Index, which is comprised of real estate investment trusts that specialize in the logistics required to make e-commerce work. The portfolio includes warehouses, distribution centers and similar facilities that allow for e-commerce companies to ship goods to their final destinations, sometimes within hours.
“The world has rapidly changed because of e-commerce. Our new suite of ETFs will provide investors with an opportunity to invest in the segments of the real estate market that have benefited since e-commerce has transformed our lives,” Sean O’Hara, President of Pacer ETFs Distributors, said in a note.
Additionally, RTL tries to reflect the performance of the Benchmark Retail Real Estate SCTR Index, which is made up of shopping centers, shopping malls and similar structures are thriving enterprises filled with retail establishments and are located in prime locations with quality tenants throughout the country.
“I believe we’re only on the cusp of what experiential retail can become. As the old department store model disappears, we’re witnessing a disruption and rapid technological evolution that’s ushering in an exciting new age of reinvented retail by the retail SCTR,” Benchmark CEO and Managing Partner Kevin R. Kelly, said in a note.
For more information on new fund products, visit our new ETFs category.