ALPS Active REIT ETF (REIT)

Overview

The ALPS Active REIT ETF (REIT) is an actively managed fund that seeks to provide total return by investing primarily in real estate investment trusts (REITs) and other real estate-related companies. It aims to outperform the broader REIT market through active stock selection and sector allocation.

Reputation and Reliability

ALPS Advisors is known for its expertise in ETFs and its commitment to providing innovative investment solutions. They have a solid track record in the ETF market.

Management Expertise

The management team has extensive experience in REIT investing and active portfolio management. They possess a deep understanding of the real estate sector.

Goal

The primary investment goal of the ALPS Active REIT ETF is to achieve total return, which includes both income and capital appreciation.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index. Instead, it employs an active management strategy to select REITs and other real estate-related companies believed to have strong growth potential.

Composition The ETF primarily holds common stocks of REITs across various sub-sectors within the real estate market, such as residential, commercial, and healthcare REITs.

Market Share: The ALPS Active REIT ETF's market share within the REIT ETF sector is moderate, indicating it's not a dominant player but holds a reasonable portion of the market.

Total Net Assets (AUM): 102990000

Key Competitors

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

Competitive Landscape

The REIT ETF market is competitive with several large, established funds dominating the space. REIT offers an active management approach, which may appeal to investors seeking potential outperformance, but faces the challenge of consistently delivering returns above its passive peers such as XLRE and VNQ. ALPS Active REIT ETF's advantage lies in its active selection which can outperform but could also underperform. Competitors are less risky and provide more diversification and stability.

Historical Performance: Historical performance data is not available without a specific date range, but the fund's performance should be evaluated over various time horizons (e.g., 1-year, 3-year, 5-year, and 10-year) to assess its track record.

Benchmark Comparison: A comparison to a relevant REIT index, such as the MSCI US REIT Index, is essential to determine if the active management strategy has added value.

Expense Ratio: 0.5

Average Trading Volume

The average trading volume for REIT is moderate, which indicates reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for REIT is generally tight, suggesting relatively low transaction costs.

Market Environment Factors

Economic indicators like interest rates, inflation, and GDP growth, as well as sector-specific factors such as occupancy rates and rental income, significantly impact the performance of ALPS Active REIT ETF.

Growth Trajectory

Growth trends depend on the overall health of the real estate market and the fund's ability to identify and capitalize on emerging opportunities within the REIT sector; changes in holdings occur based on the management's active strategy.

Competitive Edge

ALPS Active REIT ETF's primary competitive advantage is its active management approach, which aims to identify undervalued REITs and capitalize on market inefficiencies. The fund's experienced management team and flexible investment strategy can adapt to changing market conditions. This active approach distinguishes it from passively managed REIT ETFs. ALPS Active REIT ETF has the potential to outperform passive benchmarks during periods of market volatility or sector rotation, though this outperformance is not guaranteed.

Volatility

REIT's volatility is moderate and can be influenced by interest rate sensitivity and overall market fluctuations.

Market Risk

REIT is subject to market risk, including interest rate risk, economic risk, and property-specific risks, which can impact the value of its underlying holdings.

Ideal Investor Profile

The ideal investor for ALPS Active REIT ETF is one seeking exposure to the real estate sector with the potential for above-average returns through active management. Investors should have a moderate risk tolerance.

Market Risk

ALPS Active REIT ETF is suitable for long-term investors seeking income and capital appreciation from REITs, but may also appeal to active traders who believe in the potential for active management to generate excess returns.

The ALPS Active REIT ETF (REIT) is an actively managed fund providing exposure to the real estate sector through REITs. It aims to deliver total return, combining income and capital appreciation. The fund's active management approach seeks to outperform passive REIT ETFs by identifying undervalued REITs. Its moderate risk and expense ratio make it suitable for long-term investors seeking real estate exposure. However, its historical performance should be carefully compared to passive benchmarks to assess the value added by active management.

Data Sources:

• ALPS Advisors Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investors should conduct their own due diligence before making any investment decisions. Past performance is not indicative of future results. Market share data are estimates and may vary.