~ by Snehasish Chaudhuri, MBA (Finance).
Pacer Benchmark Industrial Real Estate SCTR ETF (NYSEARCA:INDS) is an exchange-traded fund that presents a compelling opportunity for investors looking to tap into the potential of the real estate market in the industrial sector. By focusing on companies that generate a significant portion of their revenue from industrial real estate operations, INDS allows investors to diversify their portfolios while capitalizing on the increasing demand for logistics assets.
INDS Is A Relatively New Industrial REIT Fund With Low Yield But High Total Returns
Pacer Benchmark Industrial Real Estate SCTR ETF is an innovative ETF that invests in stocks of companies operating across all types of equity real estate investment trusts. With assets mainly invested in the U.S. equity market, as well as other strong markets globally, INDS offers investors exposure to a diversified portfolio. Despite its relatively low yield, INDS has consistently delivered high average total returns, making it an attractive investment option.
Performance Of INDS's Overall Portfolio Can Be Termed Quite Satisfactory
INDS has strategically allocated its assets, with a focus on self-storage REITs. By investing 65 percent of its total assets in reputable self-storage REITs such as Prologis, Inc., Public Storage, and Life Storage Inc., INDS has demonstrated its ability to select stocks with strong price growth potential. Additionally, INDS has shown a positive price growth and total return, even during a challenging year for the REIT market.
Growth Of e-Commerce Should Boost The Demand For Industrial Real Estates
The rise of e-commerce is a significant driver of the increased demand for industrial real estate. As consumers increasingly turn to online shopping, the need for warehouse space and logistics infrastructure grows exponentially. E-commerce businesses require three times the amount of industrial space compared to traditional brick-and-mortar retail businesses. This trend is expected to continue, further fueling the demand for industrial real estate.
Investment Thesis
The industrial REIT sector is poised for long-term growth, driven by strong supply and demand dynamics for logistics assets. Pacer Benchmark Industrial Real Estate SCTR ETF presents a lucrative option for long-term investors, as it provides exposure to a portfolio of industrial REITs. With a history of strong total returns and a portfolio of stocks with reasonable valuations, INDS offers the potential for attractive returns.
The future of industrial real estate looks promising, and investing in INDS allows investors to participate in this growth opportunity. With a well-diversified portfolio and a focus on the industrial sector, INDS is a solid choice for investors looking to maximize their returns in the real estate market.
Disclaimer: This article does not constitute financial advice. Investors are advised to conduct their own research and consult with a professional financial advisor before making any investment decisions.