RINC Profile
The AXS Real Estate Income ETF employs a passive management strategy to mirror the performance of its underlying index, before accounting for fees and expenses. This approach aims to provide investors with returns that closely align with those of the index, which is composed predominantly of common stocks from U.S.-listed real estate investment trusts (REITs). These REITs are primarily engaged in owning and managing commercial and residential mortgages, as well as mortgage-backed securities.
In line with its investment objective, the fund allocates at least 80% of its net assets, including any borrowings for investment purposes, to the securities that make up the index. This significant allocation ensures that the funds performance is closely correlated with the indexs movements, offering investors exposure to the real estate sector with a focus on income-generating assets.
The index also includes a smaller proportion of publicly traded closed-end funds, which can add further diversification within the real estate income space. These closed-end funds often invest in similar sectors as the REITs, providing additional layers of exposure to real estate investments and income sources.
The AXS Real Estate Income ETF is non-diversified, concentrating its investments in a specific sector and asset class. This focused strategy aims to deliver targeted income and growth opportunities by investing in a concentrated portfolio of real estate-related securities. Investors in this fund should expect a portfolio heavily weighted towards real estate assets and income-producing securities.
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