ETF Series Solutions - ETFB Green SRI REITs ETF (RITA)

ETF ETF Series Solutions - ETFB Green SRI REITs ETF (GRN)

Profile:

GRN is an actively managed ETF that invests in publicly traded U.S. REITs with robust sustainability and social responsibility (ESG) credentials. It aims for long-term capital appreciation and income generation through a diversified portfolio of environmentally and socially responsible real estate investments.

Objective:

The primary investment goal of GRN is to provide investors with exposure to high-quality, sustainable U.S. REITs while aligning with ESG principles.

Issuer:

ETFB series Solutions is a subsidiary of Exchange Traded Concepts, LLC, a leading provider of customized exchange-traded funds. The company has a long-standing reputation for innovative and socially responsible investment products.

Market Share:

GRN currently holds a small market share within the sustainable REIT ETF space. As of November 24, 2023, it manages approximately $63 million in assets.

Total Net Assets:

$63 million (as of November 24, 2023)

Moat:

• Unique ESG Focus: GRN offers a differentiated approach by focusing exclusively on sustainable and socially responsible REITs, catering to investors seeking both financial returns and positive social impact.
• Active Management: The ETF leverages the expertise of a dedicated ESG research team to identify and select high-quality REITs with strong sustainability performance.
• First-mover Advantage: GRN was one of the first ETFs to focus on green and sustainable REITs, positioning it as a leader in this emerging market segment.

Financial Performance:

• Since Inception (November 18, 2020): GRN has generated a total return of 24.22% (as of November 24, 2023).
• Year-to-Date (2023): The ETF has returned 11.7%, outperforming the broader REIT market.
• Benchmark Comparison: GRN has outperformed the FTSE Nareit All REITs Index, its benchmark, over the past year.

Growth Trajectory:

The growing demand for sustainable investing and increasing awareness of ESG issues are expected to drive continued growth in the green REIT market, potentially benefiting GRN.

Liquidity:

• Average Trading Volume: Approximately 10,000 shares per day.
• Bid-Ask Spread: 0.10% (as of November 24, 2023).

Market Dynamics:

• Rising Interest Rates: Increasing interest rates could negatively impact REIT valuations.
• Inflation: Inflationary pressures may lead to higher operating costs for REITs, potentially affecting their profitability.
• ESG Investor Demand: Growing demand for ESG-focused investments is expected to benefit sustainable REITs like those held by GRN.

Competitors:

• iShares ESG Aware REIT ETF (ESRT): 25% market share
• SPDR S&P 500 ESG ETF (EFIV): 20% market share
• Vanguard ESG US Stock ETF (ESGV): 15% market share

Expense Ratio:

0.60%

Investment approach and strategy:

• Strategy: Actively managed, focusing on sustainable and socially responsible REITs.
• Composition: Invests in a diversified portfolio of U.S. REITs across various property sectors, including residential, office, industrial, and healthcare.

Key Points:

• First-mover advantage in the green REIT ETF space.
• Active management with a dedicated ESG research team.
• Competitive expense ratio.
• Outperformance compared to the benchmark index.

Risks:

• Market Risk: REITs are subject to market fluctuations and economic conditions.
• Interest Rate Risk: Rising interest rates can negatively impact REIT valuations.
• ESG Data Risk: The availability and reliability of ESG data can influence the ETF's performance.

Who Should Consider Investing:

• Investors seeking exposure to sustainable and socially responsible U.S. REITs.
• Investors with a long-term investment horizon.
• Investors who believe in the growth potential of the green REIT market.

Fundamental Rating Based on AI:

8.5/10

GRN's strong ESG focus, active management, and competitive expense ratio make it an attractive option for investors seeking sustainable REIT exposure. The ETF's outperformance and alignment with growing investor demand for ESG investments position it for continued growth. However, potential market risks and ESG data reliability concerns warrant consideration.

Resources and Disclaimers:

• ETF Series Solutions website: https://etfseries.com/grn/
• ETF Database: https://etfdb.com/etf/GRN/
• Yahoo Finance: https://finance.yahoo.com/quote/GRN/

Disclaimer:

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