ATLANTA--(BUSINESS WIRE)--Vident Financial, LLC rang the Opening Bell at the NYSE this morning to celebrate the successful launch of their U.S. Diversified Real Estate Fund (NYSE Arca: PPTY).
A real estate-focused ETF, PPTY is a rules-based, multi-factor alternative to traditional market cap-weighted funds. PPTY seeks to track, before fees and expenses, the performance of the U.S. Diversified Real Estate Index.
“Location, property type, leverage, and governance matter when investing in real estate,” said Fred Stoops, Head of Real Estate at Vident Financial. “These factors aren’t just common sense. They’re crucial to real estate, but ignored by cap-weighted funds.”
PPTY’s portfolio is constructed based on the actual properties owned by each company in its investment universe. This unique, real estate-centric approach allows PPTY to build a portfolio of public companies that delivers the consistent property type exposure and geographic diversification that real estate investors typically seek. Leverage and governance criteria are further included to reduce exposure to high-risk companies.
Since its launch on March 27th of this year, PPTY has gathered more than $70 million in assets and delivered a total return in excess of 11% through July 31st.
| PPTY ETF - MONTH END AS OF: 06/30/2018 | Inception Date: 3/24/18 | |||||||||||
| Cumulative (%) | Avg Annualized (%) | |||||||||||
| 1 Month | 3 Month | YTD | Since Inception | 1 Year | Since Inception | |||||||
| Fund NAV | 3.63 | 8.75 | TBD | 11.86 | TBD | TBD | ||||||
| Market Price | 3.53 | 10.74 | TBD | 11.98 | TBD | TBD | ||||||
Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted. Short term performance is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. The expense ratio of the fund is 0.53%. To obtain performance data current to the most recent month-end, please call (800) 617-0004.
“We are thrilled to be ringing today’s Opening Bell,” said Vince Birley, CEO of Vident Financial. “We’re equally as thrilled with how investors and advisors have responded to the exposure offered by PPTY. By moving beyond market cap, we felt like we were providing the marketplace with an important alternative to traditional REIT exposure, and we’ve been very pleased with how our thoughtful, research-driven approach has resonated.”
Today’s Bell Ringing also comes just a few days before Vident will officially mark its fifth anniversary on August 23rd.
“When we opened our doors five years ago, we set out to build a firm and a fund family centered around a principles-based investment decision making process that looks at long-term investment opportunities, identified by focusing on countries and companies with strong leadership and good governance,” added Birley. “Those factors are some of our key principles and remain at the core of our approach to this day. We can’t wait to see what the next five years will bring.”
PPTY is part of Vident’s family of ETFs, which also includes the Vident FLAG-Forensic Accounting Long-Short ETF (FLAG), the Vident Core International Equity Fund (VIDI), Vident Core US. Equity Fund (VUSE), and the Vident Core U.S. Bond Strategy (VBND). As of August 7th, Vident’s ETF family had a total of approximately $2 billion in assets under management.
About Vident Financial
Vident Financial develops investment market solutions (indices and funds) based on a distinct philosophy. Their investment strategies are founded upon sound principles that help identify environments where capital is going to thrive long-term, measuring different factors (human productivity, quality leadership, etc.) embedded within multiple process layers. Visit www.videntfinancial.com for more information.
Vident ETF's are dedicated to a principle based investing approach, overweighting in countries and companies with strong leadership and governance that foster greater prosperity. Therefore, prudent fiscal management and ethical governance are emphasized. Vident Financial has been dedicated to answering to one shareholder, the Vident ETF shareholder. Vident's company structure assures that excess profits are used for the ETF shareholders either in the form of further research or fee reductions; Vident recently announced a 10% reduction in fees on the Vident funds as of January 31, 2018. Vident's corporate structure advocating for the fund shareholders has been compared to Vanguard's corporate structure.
Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s prospectus, which may be obtained by visiting www.pptyetf.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Because the Fund is a fund of funds, its investment performance largely depends on the investment performance of the Underlying Funds in which it invests. An investment in the Fund is subject to the risks associated with the Underlying Funds that comprise the Index, including risks related to investments in derivatives, REITs, foreign securities and municipal securities. Fixed-income securities’ prices generally fall as interest rates rise. High yield securities are subject to the increased risk of an issuer’s inability to meet principal and interest payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of the non-investment grade securities markets, real or perceived adverse economic conditions, and lower liquidity. Preferred stock is subject to many of the risks associated with debt securities, including interest rate risk. In addition, preferred stock may not pay a dividend, an issuer may suspend payment of dividends on preferred stock at any time, and in certain situations an issuer may call or redeem its preferred stock or convert it to common stock. International investments may also involve risk from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, and from economic or political instability. There is no guarantee that the fund will meet its investment objective. The Fund may invest in derivatives, including futures contracts, which are often more volatile than other investments and may magnify the Fund’s gains or losses. The fund is new with limited operating history.
Leverage may cause the effect of an increase or decrease in the value of the portfolio securities to be magnified and the fund to be more volatile than if leverage was not used. Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be non-diversified, as a result, the Fund may be more exposed to the risks associated with and developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund.
Diversification - Diversification does not assure a profit nor protect against principal loss in a declining market.
Definition: U.S. Diversified Real Estate Index (PPTYX) - The index is designed to track the performance of real estate investment trusts (REIT) and other companies that invest directly or indirectly in real estate through development, management, or ownership, including property agencies.
Short term performance in particular is not a good indication of the fund’s future performance and an investment should not be made based solely on returns.
Exchange Traded Concepts, LLC ("ETC") serves as the investment advisor to the U.S. Diversified Real Estate ETF, (PPTY), and is distributed by Quasar Distributors, LLC. Within the Vident fund family, the Flag ETF is not distributed by Quasar.
