PPTY Profile
The Vident U.S. Diversified Real Estate ETF is designed to provide comprehensive exposure to the U.S. real estate market by investing primarily in real estate companies that are predominantly traded on U.S. exchanges. The fund aims to achieve its investment objective by allocating at least 80% of its net assets, including any borrowings for investment purposes, to securities of real estate companies. This strategic focus ensures that investors gain substantial exposure to the real estate sector within the U.S. market.
The ETF follows a rules-based methodology to construct its underlying index, which provides diversified coverage of the U.S. real estate market. This methodology includes selecting real estate companies based on criteria such as market capitalization, liquidity, and sector representation. The index aims to capture a broad spectrum of the real estate market, including various segments such as residential, commercial, and industrial properties, thereby offering investors a well-rounded view of the sector's performance.
By investing in a diversified portfolio of real estate companies, the ETF seeks to mitigate risk through exposure to a range of property types and geographic regions within the U.S. This approach helps to reduce the impact of any single company's performance on the overall fund, promoting a more stable and balanced investment outcome. The fund's investment strategy is designed to reflect the performance of the U.S. real estate market while providing liquidity and market efficiency.
Investors in the Vident U.S. Diversified Real Estate ETF can benefit from a targeted investment in the U.S. real estate sector without the complexities and direct ownership issues associated with individual real estate investments. The ETF's focus on diversified real estate companies allows for easier access to the real estate market and helps investors capture potential growth opportunities within this asset class while managing exposure to market fluctuations.
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