Pacer ETFs has launched three exchange-traded funds designed to tap into both established and emerging real estate sectors, with an emphasis on e-commerce.
The Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR) invests in U.S. companies that get the majority of their revenue from real estate operations in the data and infrastructure sector. Specifically, it focuses on cell tower REITs, data center REITs and similar facilities that store information and handle e-commerce orders.
The fund’s top three holdings are data center company Equinix Inc. (15.3 percent) and two cell tower REITs, American Tower Corp. (15.2 percent) and Crown Castle International Corp. (14.5 percent). And it comes with a dividend yield of 3.48 percent.
The second product, the Pacer Benchmark Industrial Real Estate SCTR ETF (INDS), focuses on industrial REITs that are part of the e-commerce distribution and logistics networks, along with self-storage facilities.
This includes warehouses, distribution centers and other facilities that allow e-commerce companies to ship goods to their final destinations, sometimes within hours.
The top holdings are Prologis Inc. (15 percent) and Duke Realty Corp. (12.3 percent). The fund's yield is 3.77 percent.
The third leg of this stool, the Pacer Benchmark Retail Real Estate SCTR ETF (RTL), invests in commercial retail REITs with a focus on assets located in prime locations with quality tenants.
The top holdings are Simon Property Group (15 percent), with its emphasis on regional malls; Realty Income Corp. (12.5 percent), which focuses on free-standing facilities; and GGP Inc. (11 percent), which invests in regional malls. RTL has the highest yield of the group at 5.42 percent.
All three ETFs track modified, market cap-weighted indexes developed by Benchmark Investments LLC, and all three sport expense ratios of 0.60 percent.
Based in the Philadelphia suburb of Paoli, Pa., Pacer has 13 ETFs with about $2.2 billion in assets under management. Before its just-released troika of real estate ETFs, its prior product, which launched in April, targets companies deemed best for hiring military veterans.