REAI: INTELLIGENT REAL ESTATE ETF
Understanding the Intelligent Real Estate ETF (REAI)
What this ETF is trying to do
The Intelligent Real Estate ETF, known by its ticker symbol REAI, is an exchange-traded fund that focuses on real estate. It holds a variety of different companies within its portfolio. Based on the top holdings provided, the fund includes companies like Plymouth Industrial REIT Inc, Service Properties Trust, and CBL & Associates Properties Inc. Because the list of holdings is partial, these are just some of the companies the fund invests in, not all of them.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only how much the share price has changed.
• Total Return: This includes both the change in share price and any cash distributions (dividends) paid out to investors.
For REAI, the numbers show:
• Year-to-Date (YTD): The price return is approximately 10.69%, while the total return is approximately 11.62%.
• One Year: The price return was approximately 1.74%, and the total return was approximately 3.74%.
• Three Year: The price return was approximately 6.25%, and the total return was approximately 18.25%.
To give you an idea of price movement, the current price is $20.83. The estimated price from roughly one year ago was approximately $20.47.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. REAI has a distribution yield of approximately 1.83%. This number describes the cash distributions relative to the ETF's price. Over the last 12 months, there were two payouts. The frequency of these payments is described as irregular or less frequent. It is important to remember that a distribution yield is not the same as total return.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Investors often care about this because they want to make sure their original investment stays stable while they collect income.
For REAI, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Pros
• Positive Returns: The fund has shown positive price returns and total returns over the one-year and three-year periods.
• Stable Risk Profile: The erosion-risk measurements suggest the fund is currently categorized as stable.
Cons
• Irregular Income: The distributions do not happen on a regular, predictable schedule.
• Lower Yield: The distribution yield of 1.83% may be considered low depending on an investor's specific goals.
Beginner takeaway
When studying REAI, remember that price changes and cash distributions are two different things. While the share price might go up or down, the total return tells you the full picture by including those cash payments. Always look at both the price return and the total return to understand how an ETF has performed.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | PLYMOUTH INDUSTRIAL REIT INC | PLYM | 2.13% |
| 2 | SERVICE PROPERTIES TRUST | SVC | 1.98% |
| 3 | CBL & ASSOCIATES PROPERTIES INC NEW | CBL | 1.90% |
| 4 | KILROY REALTY CORP | KRC | 1.87% |
| 5 | XENIA HOTELS & RESORTS INC | XHR | 1.87% |
| 6 | OMEGA HEALTHCARE INVESTORS INC | OHI | 1.82% |
| 7 | PIEDMONT REALTY TRUST INC CLASS A | PDM | 1.82% |
| 8 | MACERICH CO | MAC | 1.74% |
| 9 | HOST HOTELS & RESORTS INC | HST | 1.73% |
| 10 | APPLE HOSPITALITY REIT INC | APLE | 1.72% |