REIT Profile
The ALPS Active REIT ETF aims to achieve its investment objectives by focusing on publicly traded equity securities of Real Estate Investment Trusts (REITs). Under normal market conditions, the fund commits at least 80% of its net assets to such investments. The primary focus is on common equity securities of U.S. REITs, providing exposure to a broad range of real estate sectors and property types within the U.S.
In addition to its core investment in U.S. REITs, the fund may allocate a portion of its assets to other related securities. This includes publicly traded common equity of U.S. real estate operating companies (REOCs) that are not structured as REITs but still operate in the real estate sector. The fund may also invest in preferred equity securities of both U.S. REITs and REOCs, as well as cash and cash equivalents to manage liquidity and capital allocation.
The fund utilizes an active management strategy to select investments, focusing on identifying high-quality REITs and real estate companies with strong growth potential and attractive valuations. The investment approach is designed to take advantage of market inefficiencies and capitalize on opportunities within the real estate sector. This active management strategy allows the fund to adjust its portfolio in response to market conditions and emerging trends in the real estate market.
As a non-diversified fund, the ALPS Active REIT ETF may have significant exposure to specific sectors or types of real estate investments. This concentration can lead to higher volatility and potential risk but also provides the opportunity for higher returns if the selected sectors perform well. The fund’s strategy offers investors targeted exposure to the U.S. real estate market, leveraging the benefits of REITs and related equity securities to achieve its investment goals.
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