Long Pond Capital today rolled out the Long Pond Real Estate Select ETF (LPRE) on the NYSE Arca.
LPRE is seeking to capitalize upon what its prospectus terms “the greater real estate economy.” It targets mid- to large-cap companies with market capitalizations of at least $5 billion that generate the majority of their revenue from business operations in the real estate space.
According to the prospectus, LPRE primarily holds equity securities including real estate investment trusts (REITs) operating across a range of property types, real estate stocks, and securities of companies that support the real estate industry but that do not fall within that sector. The fund can also hold preferred stock and convertible securities from those companies. LPRE aims to maintain investments in around 30 companies at any given time.
The fund’s managers seek out companies that offer a long-term value proposition. They apply intensive research to every aspect of a firm. That includes from its fundamentals to its management quality to its balance sheet strength, among other criteria, according to its prospectus.
Exchange Traded Concepts serves as the investment advisor. Long Pond Capital is acting as the subadvisor. The portfolio managers of LPRE are John Khoury, Andrew Serowik, Todd Alberico, Gabriel Tan, and Brian Cooper. The fund has an expense ratio of 1.00%.
Real Estate ETFs
Historically, real estate exchange-traded funds have been embraced as an investment option for those looking to diversify their portfolio and gain exposure to the U.S. real estate market. These ETFs have also become popular for their low correlation with traditional stock and bond investments.
Investing in a real estate ETF such as LPRE allows an investor to gain exposure to the real estate market without the complexity or high cost of owning physical property.
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