CBRE’s Investment Management Launches Real Assets ETF for Inflation Protection in Rising Interest Rate Climate
Portfolio Manager Highlights Lack of Real Asset Options in ETF Market, Cites Opportunities in Digital Transformation, Decarbonization, and Market Mispricing
Portfolio Manager Advocates Retail Investors’ Inclusion in Real Asset Space Already Dominated by Global Financial Institutions
Foley Highlights Real Asset Segment as Attractively Positioned with Compelling Valuations and Potential for Strong Total Returns
CBRE’s New ETF Enters Market Amid Wall Street’s Focus on Artificial Intelligence Companies and Technology Excitement.
Foley argues that hard assets serve as a vital diversification away from technology, including high-flying AI stocks. Furthermore, he emphasizes the critical role of hard assets in facilitating the development of a digital economy.
According to Foley, investments in data centers, cell towers, and decarbonization-enabling infrastructure companies are essential. He believes that these investments will drive growth and lead to distinct outcomes.
New York Life Investments, the issuer of the fund, states that its top holdings are primarily in real estate and utilities. Notable holdings include Public Storage, Crown Castle, Nextera Energy, and Equinix, renowned for its expertise in data centers.
Over the past month, Equinix shares have seen a 7% increase.
Foley emphasizes Equinix as a prominent global entity and a crucial asset in the emerging economy.
However, since the launch of the IQ CBRE Real Assets ETF on May 10, it has experienced a decline of nearly 6%.
The IQ CBRE Real Assets ETF, launched by CBRE’s Investment Management, aims to provide investors with inflation protection, particularly in a rising interest rate environment.
The ETF’s portfolio manager, Dan Foley, highlights the lack of options in the ETF market specifically targeting real assets. He believes that there are ample opportunities in this space due to secular changes such as digital transformation, decarbonization, and market mispricing.
Foley acknowledges that global financial institutions have already made investments in this sector and advises retail investors to consider following suit.
He emphasizes the attractiveness of real assets, stating that valuations are compelling and that there are elements in place for strong total returns in the future.
The article also notes that the launch of this ETF comes at a time when artificial intelligence companies and technology dominate Wall Street’s attention. Foley argues that hard assets, including real estate, provide an important diversification away from technology and play a crucial role in enabling a digital economy.
The top holdings of the IQ CBRE Real Assets ETF, according to issuer New York Life Investments, are primarily in real estate and utilities. Some notable holdings mentioned include Public Storage, Crown Castle, Nextera Energy, and Equinix, which is renowned for its data center leadership.
While Equinix shares have seen a 7% increase over the past month, the article mentions that the IQ CBRE Real Assets ETF has experienced a decline of nearly 6% since its launch in May.
Overall, the news article highlights the launch of a new ETF that focuses on real estate and hard assets, providing insights into its investment strategy, market conditions, and notable holdings.
Source : cnbc.com