A 'VPN' ETF to Keep Real Estate Investors Dialed In | ETF Trends

Getting real estate investment trust (REIT) exposure can give investors the diversification they need in alternative assets like real estate, but they need to tread lightly. The COVID-19 pandemic changed the landscape of real estate with an emphasis on residential over commercial property, but there are still opportunities to be had in certain sub-sectors like data infrastructure.

With a heavier reliance on technology, the need for faster download speeds is even more apparent. Additionally, with the rollout of 5G technology, more infrastructure is necessary to support the digital environment.

VPN offers investors an alternate play on commercial real estate. It gives them a different spin on commercial property-focused REITs are having to navigate an environment where work-from-home culture is supplanting the need for office space.

As such, VPN seeks to invest in companies that operate data center REITs and other digital infrastructure supporting the growth of communication networks. The Global X Data Center REITs & Digital Infrastructure ETF (VPN) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Data Center REITs & Digital Infrastructure Index.

VPN investors can get access to:

  • High Growth Potential: VPN enables investors to access high growth potential through companies providing the digital infrastructure for 5G and next generation communication networks.
  • REIT Exposure: VPN invests in REITs, among other holdings, an asset class that has historically provided high income potential.
  • ETF Efficiency: In a single trade, VPN delivers access to dozens of companies with high exposure to the data center and digital infrastructure theme.

VPN Chart

The Future is Bright for Data Infrastructure

Speaking to the growth benefits of VPN, future signs for data infrastructure are pointing to the upside. According to a Mondovisione News article: “According to Cisco’s Annual Internet Report, 66 percent of the world’s population (5.3 billion people) will have access to the internet by 2023.”

“Data centers existed long before I had the pleasure to listen to my old 56K modem’s serenade, and, today, play a significant role in our every-day life,” said Timo Pfeiffer, Chief Markets Officer at Solactive. “As investors progressively want to diversify their portfolios, Global X’s Data Center REITs & Digital Infrastructure ETF eschews traditional brick-and-mortar real estate investments for a contemporary approach that plays on the increasing demand for digital infrastructure. We are happy to work with Global X and serve as their partner to make innovative ideas publicly investible once again.”

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