Alternative Investments/Real Estate: The Principal Real Estate Active Opportunities ETF Starts Trading Today
The ETF focuses on non-traditional real estate sectors, which include data centers, life sciences, single-family rental, medical office, and self-storage.
Principal Global Investors has launched today its first semi-transparent ETF focusing on the non-traditional property sectors of the publicly traded U.S. real estate market: The Principal Real Estate Active Opportunities ETF (NYSEARCA: BYRE) is an actively managed fund seeking total return. (BusinessWire)
Principal Real Estate Active Opportunities ETF
The new ETF will have a concentrated exposure to non-traditional property sectors, which have been highly resilient portfolio performers in recent years. This ETF is ideally included as a satellite allocation to a core equity portfolio with the following advantages:
- potential for better portfolio outcomes
- higher total returns with improved diversification
- supported by the resilient growth characteristics of many public REITs in the non-traditional sectors
- addressing structural themes ranging from demographics and infrastructure to globalization and technological innovation
- shifts in the economy
- being a semi-transparent ETF, it may face less risk that other traders can predict or copy its investment strategy. This may improve its performance.
“The Principal Real Estate Active Opportunities ETF combines two core strengths of Principal – active management and real estate investing – to provide clients with an innovative strategy that seeks to improve portfolio outcomes. The fund is thematic and one of the first semi-transparent ETFs that gives investors exposure to in-demand real estate sectors with the benefits of a liquid ETF structure,” said Jill Brown, managing director of the U.S. Wealth Platform, Principal Global Investors.
“Non-traditional sectors now represent 64% of the public REIT market as they almost doubled their share of the market cap from 2010-2020. And compared to traditional real estate sectors, non-traditional REITs have offered higher returns and higher growth over the last 10 years,” said Todd Kellenberger, client portfolio manager for Principal Real Estate Investors. “This reinforces our conviction that our semi-transparent ETF that is focused on these niche property types can be a differentiated strategy for investors seeking resilient growth and potential inflation protection.”
Latest Alternative Investment News
Meta (formerly Facebook) (NASDAQ: META) announced on Wednesday the launch of CICERO, the first artificial intelligence (AI) agent to achieve human-level performance in the popular strategy game Diplomacy. So far,…
Astera Labs announced a $150 million Series D funding round led by Fidelity Management and Research that valued the company at $3.15 billion. Other existing investors, including Atreides Management, Intel…
Indeed, according to a CNN article, travellers should get prepared for the most expensive holiday travel season ever. Average air fare is up about 40% from 2021, and rates for…
Digital Assets: Crypto Contagion Spreads To Miners – Iris Energy Unplugs Mining Hardware Amidst Default
Iris Energy (NASDAQ: IREN), the Australia-based bitcoin mining firm, said in a filing that it had taken down a large chunk of its mining capacity that had been used as…