IndexIQ has launched the IQ US Real Estate Small Cap ETF (ticker: ROOF), which it says is the first ETF focused on small-cap U.S. real estate.
The ETF will provide exposure to a wide variety of Real Estate Investment Trusts, including mortgage, retail, residential, warehousing, self-storage and hotel REITs, thus providing income. It tracks the IS US Real Estate Small Cap Index
“Performance among both small- and large-cap REITs took a big hit at the start of the financial crisis in 2007, but since 2009, REITs have been se performance resurgence, with small-cap offerings far outpacing the performance of their large-cap counterparts,” said IndexIQ CEO Adam Patti.
“In today’s environment, investors are hungry for income-producing assets,” Patti continued. “With ROOF, ETF investors now have the potential to capture a robust new income stream and significant capital appreciation by isolating small-cap U.S. real estate exposure, and they can do this in a transparent, liquid, tax-efficient way.”