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Is Columbia Research Enhanced Real Estate ETF (CRED) a Strong ETF Right Now?
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The Columbia Research Enhanced Real Estate ETF (CRED - Free Report) made its debut on 04/26/2023, and is a smart beta exchange traded fund that provides broad exposure to the Real Estate ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Columbia Threadneedle. It has amassed assets over $279.11 million, making it one of the average sized ETFs in the Real Estate ETFs. Before fees and expenses, CRED seeks to match the performance of the Bloomberg Barclays U.S. Credit Bond Index.
The Beta Advantage Lionstone Research Enhanced REIT Index reflects a rules-based strategic beta approach to investing in the companies that comprise the FTSE Nareit All Equity REITs Index.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.33%, making it on par with most peer products in the space.
CRED's 12-month trailing dividend yield is 0%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Real Estate sector - about 100% of the portfolio.
Looking at individual holdings, Prologis Inc (PLD - Free Report) accounts for about 15.57% of total assets, followed by American Tower Corp (AMT - Free Report) and Crown Castle Inc (CCI - Free Report) .
Its top 10 holdings account for approximately 61.29% of CRED's total assets under management.
Performance and Risk
The ETF has added about 0.27% so far.
With about 74 holdings, it effectively diversifies company-specific risk.
Alternatives
Columbia Research Enhanced Real Estate ETF is not a suitable option for investors seeking to outperform the Real Estate ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Real Estate Select Sector SPDR ETF (XLRE - Free Report) tracks Real Estate Select Sector Index and the Schwab U.S. REIT ETF (SCHH - Free Report) tracks Dow Jones U.S. Select REIT Index. Real Estate Select Sector SPDR ETF has $4.41 billion in assets, Schwab U.S. REIT ETF has $5.68 billion. XLRE has an expense ratio of 0.10% and SCHH charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Real Estate ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Columbia Research Enhanced Real Estate ETF (CRED) a Strong ETF Right Now?
The Columbia Research Enhanced Real Estate ETF (CRED - Free Report) made its debut on 04/26/2023, and is a smart beta exchange traded fund that provides broad exposure to the Real Estate ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Columbia Threadneedle. It has amassed assets over $279.11 million, making it one of the average sized ETFs in the Real Estate ETFs. Before fees and expenses, CRED seeks to match the performance of the Bloomberg Barclays U.S. Credit Bond Index.
The Beta Advantage Lionstone Research Enhanced REIT Index reflects a rules-based strategic beta approach to investing in the companies that comprise the FTSE Nareit All Equity REITs Index.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.33%, making it on par with most peer products in the space.
CRED's 12-month trailing dividend yield is 0%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Real Estate sector - about 100% of the portfolio.
Looking at individual holdings, Prologis Inc (PLD - Free Report) accounts for about 15.57% of total assets, followed by American Tower Corp (AMT - Free Report) and Crown Castle Inc (CCI - Free Report) .
Its top 10 holdings account for approximately 61.29% of CRED's total assets under management.
Performance and Risk
The ETF has added about 0.27% so far.
With about 74 holdings, it effectively diversifies company-specific risk.
Alternatives
Columbia Research Enhanced Real Estate ETF is not a suitable option for investors seeking to outperform the Real Estate ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Real Estate Select Sector SPDR ETF (XLRE - Free Report) tracks Real Estate Select Sector Index and the Schwab U.S. REIT ETF (SCHH - Free Report) tracks Dow Jones U.S. Select REIT Index. Real Estate Select Sector SPDR ETF has $4.41 billion in assets, Schwab U.S. REIT ETF has $5.68 billion. XLRE has an expense ratio of 0.10% and SCHH charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Real Estate ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.