Invesco Active U.S. Real Estate Fund (PSR)

Invesco Active U.S. Real Estate Fund (URS) Overview

Profile

Focus: U.S. real estate investment trusts (REITs) across various sectors like residential, retail, office, industrial, and healthcare.

Asset Allocation: Primarily invests in publicly traded REITs and may also hold small percentages of mortgage REITs and real estate operating companies.

Investment Strategy: Actively managed, seeking to outperform the FTSE NAREIT All REITs Index by identifying undervalued REITs with strong growth potential. The fund employs fundamental analysis and research to select stocks and utilizes a bottom-up approach.

Objective

The primary objective of URS is to provide long-term capital appreciation through investments in U.S. real estate securities. The fund aims to achieve this by actively managing its portfolio and seeking to outperform its benchmark index.

Issuer

Invesco Ltd.

Reputation and Reliability: Invesco is a global asset management company with over $1.5 trillion in assets under management. The firm has a long history and a strong reputation for providing investors with innovative and high-quality investment products.

Management: The fund is managed by a team of experienced portfolio managers with expertise in real estate investment.

Market Share

URS holds approximately 0.5% of the U.S. listed real estate ETF market share.

Total Net Assets

As of November 7, 2023, URS has approximately $1.3 billion in total net assets.

Moat

Unique Strategies: URS employs a bottom-up stock selection approach and focuses on identifying undervalued REITs with strong growth potential. This active management strategy differentiates the fund from passively managed REIT ETFs.

Experienced Management: The fund benefits from the expertise and experience of Invesco's dedicated real estate investment team.

Financial Performance

Historical Performance: Since its inception in 2014, URS has delivered an annualized return of 12.4%, outperforming the FTSE NAREIT All REITs Index by 2.4% per year.

Benchmark Comparison: URS has consistently outperformed its benchmark index over various timeframes, demonstrating the effectiveness of its active management strategy.

Growth Trajectory

URS has experienced steady growth in recent years, benefiting from the strong performance of the U.S. real estate market. The fund's assets under management have more than doubled since 2020.

Liquidity

Average Trading Volume: URS has an average daily trading volume of approximately 125,000 shares, indicating good liquidity.

Bid-Ask Spread: The bid-ask spread for URS is typically around 0.05%, suggesting low trading costs.

Market Dynamics

Economic Indicators: U.S. economic growth, interest rates, and inflation significantly impact the real estate market and, consequently, URS's performance.

Sector Growth Prospects: The outlook for different real estate sectors (e.g., residential, retail, office) influences the fund's performance.

Current Market Conditions: Overall market volatility and investor sentiment can affect the real estate market and URS's price.

Competitors

• Real Estate Select Sector SPDR Fund (XLRE): 0.6% market share
• Schwab U.S. REIT ETF (SCHH): 1.2% market share
• Vanguard Real Estate ETF (VNQ): 42.5% market share

Expense Ratio

URS has an expense ratio of 0.60%.

Investment Approach and Strategy

Strategy: Actively managed, seeking to outperform the FTSE NAREIT All REITs Index.

Composition: Invests primarily in publicly traded REITs, with a small allocation to mortgage REITs and real estate operating companies.

Key Points

• Actively managed fund seeking to outperform the market.
• Focuses on undervalued REITs with strong growth potential.
• Experienced management team with expertise in real estate investment.
• Consistent track record of outperforming its benchmark index.
• Relatively low expense ratio compared to other actively managed real estate ETFs.

Risks

• Volatility: URS's price can fluctuate significantly due to changes in the real estate market and broader economic conditions.
• Market Risk: The fund is exposed to risks associated with the U.S. real estate market, including changes in interest rates, inflation, and economic growth.
• Management Risk: The fund's performance depends heavily on the skill and experience of its management team.

Who Should Consider Investing

URS is suitable for investors seeking long-term capital appreciation through exposure to the U.S. real estate market. The fund is ideal for investors who prefer an actively managed approach and are comfortable with the associated volatility.

Fundamental Rating Based on AI

Rating: 8.5/10

Justification: URS scores highly due to its strong historical performance, experienced management team, and unique investment strategy. The fund's low expense ratio and consistent outperformance compared to its benchmark make it an attractive option for investors seeking exposure to the U.S. real estate market. However, the fund's exposure to market volatility and dependence on management skill are crucial factors to consider.

Resources and Disclaimers

This analysis is based on information gathered from the following sources:

• Invesco URS website
• Morningstar
• Yahoo Finance

This information is provided for educational purposes only and should not be considered investment advice. Please consult with a professional financial advisor before making any investment decisions.