Press release
Principal® Lists First Semi-Transparent ETF on NYSE
Actively managed real estate ETF aims to provide durable growth amid inflationary pressures with concentrated exposure to non-traditional REIT sectors DES
About this update from Principal Financial Group Inc
[{"type":"text","content":"\nActively managed real estate ETF aims to provide durable growth amid inflationary pressures with concentrated exposure to non-traditional REIT sectors\n\n DES MOINES, Iowa--(BUSINESS WIRE)--\nPrincipal Global Investors® announced the Principal Real Estate Active Opportunities ETF (Ticker: BYRE), the firm’s first semi-transparent ETF, is available for trading upon today’s market open of the New York Stock Exchange. It is a new, actively managed, semi-transparent ETF that has a focused concentration on the non-traditional property sectors of the publicly traded U.S. real estate market. The objective of the fund seeks total return.\n\n“The Principal Real Estate Active Opportunities ETF combines two core strengths of Principal – active management and real estate investing – to provide clients with an innovative strategy that seeks to improve portfolio outcomes. The fund is thematic and one of the first semi-transparent ETFs that gives investors exposure to in-demand real estate sectors with the benefits of a liquid ETF structure,” said Jill Brown, managing director of the U.S. Wealth Platform, Principal Global Investors.\n\nDue to its concentrated exposure to non-traditional property sectors, the Principal Real Estate Active Opportunities ETF can enhance core equity portfolios for investors as a satellite allocation. This creates the potential for better portfolio outcomes and higher total returns with improved diversification generated by the resilient growth characteristics of many public REITs in the non-traditional sectors.\n\nNon-traditional real estate sectors, which include property types like data centers, life sciences, single-family rental, medical office, and self-storage, have been highly resilient the past few years. Shifts in the economy and structural themes ranging from demographics and infrastructure to globalization and technological innovation are driving change and opportunity for these non-traditional property types.\n\n“Non-traditional sectors now represent 64% of the public REIT market as they almost doubled their share of the market cap from 2010-2020. And compared to traditional real estate sectors, non-traditional REITs have offered higher returns and higher growth over the last 10 years1,” said Todd Kellenberger, client portfolio manager for Principal Real Estate Investors. “This reinforces our convictio...