Wednesday was International Data Center Day. Yes, there’s such an occasion and with that in mind, it’s worth noting that this corner of the real estate market may a credible play in the coronavirus environment, one that can be tapped 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.
Some analysts don’t see the COVID-19 pandemic as representing a significant disruption to the global data center market.
“The coronavirus (COVID-19) is by far the most significant theme to affect the technology industry in 2020. COVID-19 is a major factor behind cutbacks in spending on non-critical maintenance and construction projects at the world’s data centers, but it will not affect long-term infrastructure equipment spending,” according to GlobalData.
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.
What makes SRVR unique is its online focus and discrimination.
“The global demand for data storage and processing power will continue to increase exponentially. However, the future is not all rosy for the infrastructure industry. Companies will be aggressively cutting costs throughout the remainder of 2020,” said Stuart Ravens, chief analyst, thematic research, at GlobalData.
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.
“While core data center infrastructure may get an investment boost, non-core investments will be delayed or canceled,” said Ravens. “This might mean edge computing projects are put on hold, and investment in high-performance computing for advanced AI R&D projects may also be slashed.”
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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.