- NETL is an ETF that owns net lease REITs, which have traditionally been most associated with retail real estate.
- However, NETL's underlying holdings in aggregate have a nearly 30% allocation to industrial real estate, which has been extremely hot since the pandemic.
- NETL's overall exposure to industrial properties has been rising over time.
- Since industrial REITs tend to command higher valuation multiples, I would argue that NETL should command a higher valuation multiple as well.
- And yet, NETL's cash flow multiple is lower today than it was at the end of 2019.
For further details see:
The NETLease Corporate Real Estate ETF Is Increasingly Focused On Industrial Properties