The first ETF active on pure-play U.S. residential real estate hits the market
Armada ETF Advisors has launched the Home Appreciation US REIT ETF (BATS:HAUS)the market’s first active pure-play US residential property ETFs. The fund takes positions in publicly traded real estate investment trusts (REITs) that derive their income from the ownership and/or management of residential properties.
Unlike traditional real estate ETFs that invest in real estate-related businesses, HAUS offers individuals access to REITs, which invest directly in residential real estate assets, including multi-family housing, manufactured housing, single-family rental housing and housing for the elderly.
David Auerbach, Managing Director of Armada ETF Advisors, said: “With inflation near record highs, a real estate allocation provides diversification to a traditional stock/bond portfolio. Through its underlying REIT investments, HAUS offers investors potential additional income benefits, including a quarterly dividend. payments and potential appreciation. »
Additionally, Justin Goldberg, CEO of Armada ETF Advisors, added, “While home ownership or the ability to invest in individual properties may be out of reach for many, our goal is to provide access to real estate via the flexible ETF envelope.”
HAUS comes to market with an expense ratio of 0.60% and trades on the CBOE exchange.
With the prospect of rising interest rates threatening the market, real estate ETFs such as (NYSEARCA:XLRE), (NYSEARCA: IYR)and (NYSEARCA: VNQ) flip-flopped in early 2022 reversing course after remarkable gains in 2021.