Fund is the first and only ETF to provide targeted exposure to the performance of the small-cap U.S. REIT space..
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The IQ US Real Estate Small Cap ETF (NYSE Arca: ROOF) celebrated its third anniversary on June 14th, it was announced by the fund’s sponsor, IndexIQ. At its introduction, ROOF was the first Exchange-Traded Fund (ETF) to provide exposure to the overall performance of small capitalization U.S. real estate companies, and remains unique in the fast-growing ETF marketplace.
“Small-capitalization REITs historically have offered investors the opportunity for higher yields and less correlated performance,” said Adam Patti, chief executive officer at IndexIQ. “Those factors were among our reasons for developing ROOF and its underlying index, and we have been very pleased with the way the fund has performed.”
ROOF seeks to replicate, before fees and expenses, the performance of the IQ US Real Estate Small Cap Index, a float-adjusted, market-cap weighted index that seeks to track the overall performance of small-capitalization US real estate companies. As of March 31st, the top three sector allocations in the fund and index were Mortgage REITs (approximately 23 percent of holdings), Office REITs (approximately 18 percent), and Specialized REITs (approximately 14 percent). The fund and index also offer exposure to Hotel REITs, Diversified REITs, Retail REITs and Residential REITs.
“Small-cap REITs can serve as an effective complement to investors’ large-cap REIT exposure,” added Patti. “Not only do they offer the potential for outperformance , but in many cases these REITs also become acquisition targets in their own right, further benefiting shareholders.”
Source: ETFWorld.com
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