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Actively managed ALPS Active REIT ETF highlighted amid rate pressure
ETF Trends says an S&P 500 real estate components index is down nearly 8% over the past month as the 10- and 30-year Treasury yields stay elevated.
ETF Trends points to elevated 10- and 30-year Treasury yields and the Federal Reserve’s recent interest rate hike, saying the setup is challenging for real estate stocks, an asset class it describes as rate-sensitive.
The outlet cites an index made up of the S&P 500’s real estate components as down almost 8% over the past month, and frames the decline as tied to rate-related vulnerabilities in the sector.
ETF Trends recommends the actively managed ALPS Active REIT ETF as a way for investors to stay exposed to real estate equities, arguing active management can help avoid some of the group’s most vulnerable names during periods of rising rates.
The article also notes that Boston Properties (BXP) is included on Morningstar’s recently unveiled list of top ideas in the real estate space.
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