Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF Building Blocks Channel
  2. Find Active Advantages With This REIT ETF
ETF Building Blocks Channel
Share

Find Active Advantages With This REIT ETF

Tom LydonApr 29, 2022
2022-04-29

Real estate stocks and the related exchange traded funds are performing notably better than the broader market this year, despite rising interest rates.

Just look at the ALPS Active REIT ETF (REIT). Entering the April 28 trading session, REIT held a year-to-date advantage of more than 800 basis points over the S&P 500. That’s a testament not only to the defensive traits of the real estate sector, but REIT’s active management as well.

Speaking of the benefits of REIT being an actively managed fund, it’s home to some stocks that real estate analysts are bullish on. Take the case of Realty Income (NYSE:O), which is a triple-net REIT, meaning that its tenants are responsible for the maintenance of the properties.

“And so, Realty Income just sits back and collects a simple rent payment from them without having any major expenses, and it makes it a very safe stable business, and even in recessions their cash flows are not changed very much because they have such a wide cushion between what the operator, the tenants’, cash flows are versus the rent payments, that their rent payments are never at risk of being potentially cut,” says Morningstar analyst David Harrel.

Realty Income, which accounted for 3.4% of REIT’s portfolio at the end of last year, is primarily known for owning retail properties, but it’s diversifying its client base. Earlier this year, the real estate company said that it is acquiring the real estate assets of Encore Boston Harbor from Wynn Resorts for $1.7 billion. That venue is widely viewed as New England’s glitziest casino-hotel.

Harrel is also constructive on healthcare REIT Ventas (NYSE:VTR). Ventas owns healthcare centers, life sciences real estate, and senior housing facilities.

“One of the things that we like about them is that they do have their life science and their medical office portfolios, which were not impacted by the pandemic and generally should be relatively defensive during most recessions,” adds the Morningstar analyst. “Medical office is a portfolio that just should continue to grow at 2% to 3% every year and is insulated from most economic impacts. Life science is a sector that should have a significant growth ahead of it, as many pharmaceuticals continue to invest in their overall research capabilities and many universities are expanding their research campuses."

Ventas represented 3.14% of REIT’s portfolio at the end of 2021, according to issuer data.

Other REIT ETFs include the Schwab US REIT ETF (SCHH A) and the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR).

For more news, information, and strategy, visit the ETF Building Blocks Channel.

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X