First Trust has launched the Alerian Disruptive Technology Real Estate Ucits ETF (DTRE), aimed at investors who in some cases the firm said were still scarred by the adverse reaction in real estate funds to the Brexit referendum .
The fund offers direct exposure to companies providing the physical infrastructure realted to the “digital revolution”.
Rupert Haddon, managing director at First Trust, said: “Property investors have had issues for some time in Europe. For many, the scars are still raw following liquidity issues in the open-ended property market following the Brexit referendum.
“For others, we can understand the reticence in allocating to broad, market-cap weighted Reits [real estate investment trusts] which are typically positioned within declining areas such as the high street or offices. DTRE could provide the solution to both of these issues.”
First Trust said the fund will aim to correspond to the price and yield generated by the Alerian Global IT Real Estate and Infrastructure index, which provides exposure to companies that own and lease real estate that supports rapid data transfer, distributed data handling and e-commerce warehousing.
The maximum weight of any stock comprising the index is limited to 10% of the fund’s net assets. The index committee will classify each index security as either “Pure Play” or “Diversified”, which are given a collective weight of 80% and 20% in the index, respectively.
The fund, which is listed on the London Stock Exchange, has a total expense ratio of 0.60% and base currency of US dollars.
© 2022 funds europe
