Alternative Investments/Real Estate: First Trust Launches Disruptive Technology Real Estate ETF In Europe
The ETF is listed on London Stock Exchange in USD and GBP.
The First Trust Alerian Disruptive Technology Real Estate UCITS ETF, a new launch from First Trust, offers investors exposure to unconventional, digital-related real estate plays around themes including cloud computing (through exposure to data centers), 5G connectivity (telecommunication tower sites), and e-commerce logistics (specialized buildings and warehouses). (ETF Strategy)
The London-listed ETF is suitable for investors looking for real estate opportunities outside of the humdrum office and retail sectors that are on a decline.
The fund will therefore scout for companies that provide the physical infrastructure underpinning the digital revolution, in a liquid, transparent format, with minimal overlap to the technology sector and broader indices.
Companies that will make the grade would typically own and lease real estate that supports rapid data transfer, including the latest generation-capable cell towers and fiber-optic cable networks; distributed data handling, including data center and cloud computing networks as well as E-commerce warehousing, including distribution and storage warehouses and logistics facilities.
First Trust Alerian Disruptive Technology Real Estate UCITS ETF
The new ETF tracks the Alerian Global IT Real Estate & Infrastructure Index which selects its constituents from a universe of developed market REITs and real estate operating companies with market capitalizations above $100 million and average daily trading volumes greater than $5 million.
The ETF has a total expense ratio of 0.60%.
Fundspeak
Rupert Haddon, Managing Director, First Trust says: “Our focus has always been on offering products that offer clients access to untapped market segments, and DTRE forms the natural next step for our European business.”
“With the mass adoption of Cloud, IoT, Robotics & AI, and 5G as well as other disruptive technologies, in addition to accelerating digitization, the growing need for infrastructure to support our digital activities and the immense amount of data behind them has become paramount.”
Robert Hughes, Chief Commercial Officer of Alerian says: “Consumer trends and behaviors are creating significant demand for continued enhancements to the infrastructure required to support an accelerating move towards a more digital reality.”
Related Story: Palladius Launches Real Estate Fund On The RealtyMogul Platform
Image Credit: StockVault Author Mircea Lancu (Creative Commons CCO)
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