XLRE - INDS: Focused Industrial REIT With Higher Total Return Potential But Somewhat Risky
2024-03-14 12:24:45 ET
Summary
- Pacer Industrial Real Estate ETF (INDS) is a concentrated play on industrial REITs, focusing on warehouses and self-storage facilities.
- The ETF is passively managed and seeks to replicate the Solactive GPR Industrial Real Estate Index.
- INDS has performed well against its competitors, with a higher total return, thanks to its concentration in the e-commerce and logistics sector.
Pacer Industrial Real Estate ETF ( INDS ) is a relatively new fund that began trading in early 2018. INDS is a focused play of industrial REITs comprised primarily of industrial warehouses and self-storage facilities. This is hard to find in the REIT universe. INDS invests in industrial REITs that are a subset of the warehouse e-commerce distribution and logistic networks and self-storage facilities. As consumer e-commerce spending continues to grow and thrive, there is an expected need for an additional 200 million square feet of e-commerce dedicated logistical space over the next five years. In addition, the percentage of total retail sales represented by e-commerce is expected to continue its relentless climb, as shown in the chart below. While we like the REIT concentration that INDS represents, we rate this fund a hold for now based on valuation....
INDS: Focused Industrial REIT With Higher Total Return Potential But Somewhat Risky