Tidal ETF Trust - Intelligent Real Estate ETF (REAI)

Overview

The Intelligent Real Estate ETF (NYSEARCA: IREE) is an actively managed ETF that seeks long-term capital appreciation by investing in a portfolio of publicly traded real estate companies. It focuses on companies that are adapting to technological innovations and changing consumer preferences.

Reputation and Reliability

Tidal ETF Services LLC is a relatively newer ETF provider. Its reputation is still developing, but it focuses on providing solutions for emerging investment managers.

Management Expertise

While Tidal serves as the trust, the actual management expertise relies on the sub-advisor responsible for security selection and portfolio construction. Further research needed into the sub-advisor.

Goal

The Intelligent Real Estate ETF aims for long-term capital appreciation through investments in real estate companies.

Investment Approach and Strategy

Strategy: The ETF is actively managed, meaning it does not track a specific index. Its strategy involves identifying real estate companies adapting to technological and consumer trends.

Composition The ETF primarily holds stocks of publicly traded real estate companies, including REITs (Real Estate Investment Trusts) and real estate operating companies.

Market Share: Data on IREE's specific market share is limited due to its niche focus and relatively small AUM compared to broader real estate ETFs.

Total Net Assets (AUM): 1147739

Key Competitors

• Real Estate Select Sector SPDR Fund (XLRE)
• Vanguard Real Estate ETF (VNQ)
• iShares U.S. Real Estate ETF (IYR)

Competitive Landscape

The real estate ETF market is dominated by broad-based index funds like XLRE and VNQ. IREE differentiates itself with an active management approach focused on technological disruption in the real estate sector. A key advantage is its targeted focus, but it faces the disadvantage of higher expense ratios and potential underperformance compared to passively managed, lower-cost competitors.

Historical Performance: Historical performance data for IREE should be reviewed over various timeframes (e.g., 1-year, 3-year, 5-year) to assess its risk-adjusted returns. Due to the dynamic nature of market data, the exact performance figures will vary based on the query date.

Benchmark Comparison: The ETF's performance should be compared against a broad real estate index (e.g., the MSCI US REIT Index) to evaluate its effectiveness in generating alpha.

Expense Ratio: 0.45

Average Trading Volume

The average trading volume of IREE is relatively low, suggesting that it may be less liquid compared to more established real estate ETFs.

Bid-Ask Spread

Due to the lower trading volume, the bid-ask spread for IREE may be wider, potentially increasing trading costs for investors.

Market Environment Factors

Economic indicators like interest rates, inflation, and GDP growth significantly impact the real estate sector. Technological advancements and changing demographics also affect IREE's holdings.

Growth Trajectory

IREE's growth trajectory depends on the fund's ability to identify and capitalize on emerging trends within the real estate industry. Changes in holdings should be monitored.

Competitive Edge

IREE's competitive edge lies in its active management and focus on real estate companies leveraging technology and adapting to evolving consumer preferences. This targeted approach allows it to potentially outperform broader real estate ETFs. The fund seeks opportunities in areas like proptech, data analytics, and smart building technologies. However, the active management strategy introduces risks related to the manager's stock-picking abilities. Successful implementation of this strategy can differentiate IREE from passive real estate ETFs.

Volatility

IREE's volatility should be evaluated relative to its benchmark and competitor ETFs. Actively managed funds can exhibit higher volatility depending on the investment strategy.

Market Risk

Specific risks include interest rate sensitivity, economic downturns impacting real estate values, and the potential for technological disruption to negatively affect certain real estate business models.

Ideal Investor Profile

The ideal investor is one seeking targeted exposure to technologically forward-thinking real estate companies. They should be comfortable with active management and potentially higher volatility.

Market Risk

IREE is more suitable for investors with a higher risk tolerance and a longer-term investment horizon. It is not necessarily the best fit for passive index followers.

The Intelligent Real Estate ETF (IREE) is an actively managed ETF focusing on real estate companies adapting to technological change. It aims for long-term capital appreciation and differentiates itself from passive ETFs by targeting specific opportunities. Its smaller size and active management style may lead to higher volatility and trading costs. Investors should carefully consider their risk tolerance and investment objectives before investing. The ETF may be suitable for those seeking targeted exposure to innovation in the real estate sector.

Data Sources:

• ETF.com
• Morningstar
• Company Fact Sheet

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Market data is dynamic and subject to change. Consult with a qualified financial advisor before making any investment decisions.