Principal Exchange-Traded Funds - Principal Real Estate Active Opportunities ETF (BYRE)

Overview

The Principal Real Estate Active Opportunities ETF (BYRE) is an actively managed ETF focusing on real estate investments, aiming to generate total return by investing in public and private real estate markets. It seeks opportunistic investments across various real estate sectors and geographies, utilizing Principal Global Investors' real estate expertise.

Reputation and Reliability

Principal Funds is a well-established asset manager with a long history of providing investment solutions, recognized for its real estate investment capabilities.

Management Expertise

The ETF is managed by a team of experienced real estate professionals at Principal Global Investors, leveraging their in-depth market knowledge and active management strategies.

Goal

Seeks to generate total return by investing in public and private real estate markets.

Investment Approach and Strategy

Strategy: Actively managed, selecting real estate investments based on market analysis and opportunistic strategies.

Composition A mix of publicly traded REITs and private real estate investments, aiming to capitalize on opportunities across the real estate spectrum.

Market Share: BYRE's market share is relatively small compared to larger, passively managed real estate ETFs.

Total Net Assets (AUM): 32010000

Key Competitors

• Vanguard Real Estate ETF (VNQ)
• Real Estate Select Sector SPDR Fund (XLRE)
• iShares Core U.S. REIT ETF (USRT)

Competitive Landscape

The real estate ETF market is dominated by passively managed, broad-based ETFs like VNQ and XLRE. BYRE differentiates itself through active management and a focus on opportunistic investments, including private real estate. This active approach may offer higher potential returns but also introduces higher fees and potential underperformance relative to the benchmark. BYRE aims to provide diversification and access to potentially higher-yielding real estate investments.

Historical Performance: Past performance is not indicative of future results. Review specific performance data from Principal Funds or financial data providers.

Benchmark Comparison: Compare BYRE's performance against a relevant real estate benchmark index, such as the FTSE NAREIT All Equity REITs Index, to assess its active management effectiveness.

Expense Ratio: 0.79

Average Trading Volume

BYRE's average trading volume is relatively low, which may affect order execution.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs, potentially increasing trading costs.

Market Environment Factors

Interest rate changes, economic growth, demographic shifts, and real estate market cycles influence BYRE's performance.

Growth Trajectory

BYRE's growth is dependent on its ability to deliver superior returns through active management and attract investor interest in its unique investment approach. Any shifts in real estate sector focus or strategy should be monitored.

Competitive Edge

BYRE's competitive advantage lies in its active management and access to private real estate investments, providing diversification and potential for higher returns compared to passive REIT ETFs. The fund's active approach seeks to capitalize on market inefficiencies and identify undervalued real estate opportunities. The management team's expertise in real estate analysis and portfolio construction is crucial to its success. However, active management also comes with higher fees and the risk of underperforming the benchmark.

Volatility

BYRE's volatility can be higher than broad-based real estate ETFs due to its active management and exposure to private real estate.

Market Risk

Real estate market fluctuations, interest rate sensitivity, and specific risks associated with private real estate investments are key considerations.

Ideal Investor Profile

Investors seeking higher potential returns through active management, diversification beyond publicly traded REITs, and exposure to private real estate may find BYRE suitable.

Market Risk

BYRE is more suitable for investors with a higher risk tolerance and a longer-term investment horizon, as well as those comfortable with active management and potentially higher fees.

The Principal Real Estate Active Opportunities ETF (BYRE) is an actively managed ETF that invests in both public and private real estate markets. It seeks to generate total return by capitalizing on real estate opportunities. BYRE offers a differentiated approach compared to passively managed REIT ETFs, but comes with higher fees and potential volatility. Investors should consider their risk tolerance and investment goals before investing. The fundu2019s success relies on the manager's expertise and market conditions.

• Vanguard Real Estate ETF (VNQ)
• Real Estate Select Sector SPDR Fund (XLRE)
• iShares Core U.S. REIT ETF (USRT)
• REM
• IYR

Data Sources:

• Principal Funds Website
• ETF.com
• Bloomberg
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results. Data is subject to change.