AVRE Profile
The Avantis Real Estate ETF (ticker: AVRE) is strategically designed to provide investors with broad exposure to the global real estate sector. The fund primarily invests in a diverse array of real estate securities, with a strong emphasis on real estate investment trusts (REITs) and REIT-like entities. These investments span multiple property sectors, including residential, commercial, industrial, and specialty real estate, enabling the fund to capture a wide range of opportunities within the real estate market.
Under normal market conditions, the fund is committed to allocating at least 80% of its assets to securities issued by REITs and other real estate-related companies. This significant allocation ensures that the fund maintains a robust focus on the real estate sector, offering investors a high degree of sector-specific exposure. The inclusion of REITs and similar entities provides the fund with access to diversified income streams and potential capital appreciation derived from various property types and geographic locations.
In addition to its core investment strategy, the fund manager may engage in securities lending as part of its operational activities. This practice involves lending out securities held in the fund's portfolio to generate additional income, which can be reinvested or used to enhance the fund's overall return. The collateral from such lending activities is typically invested in safe, eligible securities, such as government money market funds, to ensure liquidity and preserve capital.
The Avantis Real Estate ETF's investment approach is underpinned by a focus on achieving comprehensive global real estate exposure while employing strategies to optimize returns and manage risk. By investing in a broad spectrum of real estate securities and leveraging operational practices like securities lending, the fund aims to deliver attractive returns to investors seeking diversified exposure within the real estate sector. The fund's disciplined approach to investing in REITs and other real estate entities reflects its commitment to capturing opportunities across the global real estate market.
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