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WisdomTree launches New Economy Real Estate ETF

ETF issuer WisdomTree has announced the expansion of its thematic equity ETF product range with the launch of the WisdomTree New Economy Real Estate UCITS ETF (WTRE). 

Listed on the London Stock Exchange, Börse Xetra and Borsa Italiana, WTRE seeks to track the price and yield performance, before fees and expenses, of the CenterSquare New Economy Real Estate UCITS Index and has a total expense ratio of 0.45 per cent. 
 
The ETF provides investors with access to the global real estate companies that have exposure to technology, science and/or e-commerce related business activities such as data centres, telecommunication towers, logistics warehouses and that meet WisdomTree’s ESG criteria.
 
The firm writes that WTRE represents an exciting opportunity at the juncture of thematic investing and real estate by providing investors with access to global real estate companies that are focussed on powering the growth of many different megatrends, or the ‘new economy’. 
 
Christopher Gannatti, Global Head of Research, WisdomTree, says: “Real Estate is integral to the evolution of technologies which are being used to underpin many megatrends.  Without very specific types of real estate infrastructure, technological advancements and innovations would be limited and develop at a sub-optimal pace. Providing exposure to the infrastructure, powering the new economy, allows investors to take an alternative approach to megatrend investing and represents an exciting opportunity at the verge of thematic investing and real estate. Through the strategy, investors can potentially benefit from the cutting-edge technology and industries which could be the driving force for economic growth over the long-term.”
 
In developing WTRE, WisdomTree leveraged industry experts CenterSquare Investment Management LLC (CenterSquare), a global investment manager focused on actively managed public and private real estate and private real estate debt strategies. CenterSquare is the largest independently-owned active REIT manager globally and one of the 10 largest active REITs managers in the world. 
 
Alexis Marinof, Head of Europe, WisdomTree, says: “This launch complements our multi-award-winning thematic equity UCITS platform, which is built on innovative product development. By partnering with high-calibre sector experts like CenterSquare, we are able to deliver differentiated thematic exposures that investors cannot find elsewhere. Many investors are taking a new approach to asset allocation with themes replacing geographical allocations. Against this backdrop, 2021 was another record year in Europe for thematic ETFs with USD15.3 billion of inflows as investors look to megatrends to power their portfolios for long-term growth opportunities.”
 
The firm writes that the WisdomTree New Economy Real Estate UCITS ETF merges both qualitative and quantitative evaluations of eligible stocks in an effort to identify a portfolio of best-in-class real estate securities that are technology focused, have attractive growth and valuation characteristics relative to the investable universe and offer the diversification benefits associated with megatrends:
 
•    Cloud Computing: This is a major megatrend, changing the way that software and computer resources are consumed. The data centres that are central to its existence require specially designed warehousing to function.
•    4G and 5G Connectivity: There is a lot of excitement around 4G and 5G mobile technology and without the telecommunication tower sites designed to support this, the proliferation of this connectivity would not be possible. As mobile internet adoption accelerates, these tower sites are becoming increasingly important.
•    Logistics/Supply Chain: This sector requires very specialised buildings and warehouses, allowing more consumers and businesses to order anything they might need for fast delivery. One example of this is refrigerated storage, as many types of food need to be stored and transported within strict regulatory guidelines. 
•    Life Sciences: The industry is poised to gain an enormous array of capabilities in the coming years. Laboratories are yet another example of very specialised real estate, without which many biotech efforts would struggle to get off the ground.

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