Vident Financial’s PPTY- US Diversified Real Estate ETF (PPTY) has reached USD100 million in assets under management (AUM).
PPTY accomplished this impressive achievement in less than a year since its launch on 27 March 2018.
“The most important factors when investing in real estate aren’t a secret: location, property type, and leverage levels. We designed PPTY to provide investors a common-sense alternative to traditional cap-weighted real estate ETFs, which ignore these fundamentals,” says Fred Stoops, Head of Real Estate at Vident Financial. “If you wouldn’t buy a house without considering location, why would you own a real estate ETF that ignores something so basic? We’re pleased that investors have gravitated to our approach as quickly as they have.”
PPTY’s portfolio is constructed based on the actual properties owned by each company in its investment universe (ie. US REITs). This distinct approach allows PPTY to build a portfolio of REITs that delivers the consistent property type and geographic diversification that real estate investors typically seek. Leverage and governance criteria are further included to reduce exposure to high-risk companies.
Since its launch earlier on 27 March 2018 up to 31 January 2019 PPTY has delivered a total return of 17.63 per cent.
“PPTY has proven to be a very successful addition to Vident’s ETF suite and an outstanding example of our distinct principles-based investment approach,” said Vident Financial CEO Vince Birley. “We are delighted to see how PPTY is resonating with investors and advisors.”
PPTY is part of Vident Financial’s family of ETFs that also includes the Vident International Equity Fund (VIDI), Vident Core U.S. Equity Fund (VUSE), Vident Core U.S. Bond Strategy (VBND) and the Forensic Accounting Long-Short ETF (FLAG). As of DATE, Vident’s ETF family had a total of approximately USD1.6 billion in AUM.