Guggenheim Investments has launched the Guggenheim Emerging Markets Real Estate ETF (EMRE), the first exchange-traded fund to focus exclusively on emerging markets real estate.
The fund invests primarily in publicly traded emerging markets real estate securities that seek to benefit from the growth of the real estate industry and the income typically generated by real estate investments across nearly two dozen emerging market countries.
EMRE seeks investment results that generally correspond to the performance, before fees and expenses, of the AlphaShares Emerging Markets Real Estate Index. The index is designed to measure and monitor the performance of the investable universe of publicly traded companies and real estate investment trusts that derive a majority of their revenues from real estate development, management and/or ownership of property in the countries of the S&P BMI Emerging Markets Index.
EMRE is the fifth ETF in Guggenheim’s product line affiliated with index provider AlphaShares, a firm led by chief investment officer Dr Burton G Malkiel, author of A Random Walk Down Wall Street.
“Emerging markets real estate provides the potential for an attractive return stream that combines the growth potential from these regions’ favourable geopolitical and demographic megatrends with an attractive yield component,” says Dr Malkiel. “Investments in emerging markets real estate also may offer added portfolio diversification because of the sector’s low correlation to US equities and offer potential protection from inflation in a rising interest rate environment.”
“We’re pleased to offer advisors and investors another innovative solution and the first ETF to access one of the most under-exposed areas of the global real estate market,” says William Belden, managing director, product development at Guggenheim Investments.