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

ETF ETF Series Solutions - ETFB Green SRI REITs ETF Summary

Profile:

The ETF Series Solutions - ETFB Green SRI REITs ETF (GRN) is an actively managed exchange-traded fund focusing on sustainable green and social impact. It invests in real estate investment trusts (REITs) demonstrating strong ESG (Environmental, Social, and Governance) principles. The ETF employs a quantitative and fundamental approach to select companies that align with the green and social impact investment theme.

Objective:

The ETF aims to provide long-term capital appreciation by investing in a diversified portfolio of green and socially responsible REITs.

Issuer:

ETF Series Solutions is a subsidiary of ETF Series Solutions Trust and ETF Series Solutions LLC, which are all part of Victory Capital Management Inc.. Victory Capital is a global asset management firm with over $171 billion in assets under management (as of June 30, 2023).

Reputation and Reliability: Victory Capital has a strong reputation in the financial industry, with over 30 years of experience managing investment products. The firm is known for its expertise in active management and its commitment to ESG investing.

Management: The ETF is managed by a team of experienced portfolio managers at Victory Capital, led by David Rolley, Portfolio Manager and Chief Investment Officer of VictoryShares. Rolley has over 20 years of experience in the investment industry, with a focus on ESG and sustainable investing.

Market Share:

GRN is a relatively new ETF, launched in June 2023. As of November 7, 2023, its market share in the green and socially responsible REITs space is approximately 1.5%.

Total Net Assets:

The ETF currently has total net assets of approximately $25 million.

Moat:

GRN's competitive advantage lies in its unique combination of:

• Active Management: The ETF utilizes a quantitative and fundamental screening process to select green and socially responsible REITs, offering a more selective approach than passively managed green REIT ETFs.
• ESG Focus: The ETF's specific focus on green and social impact investing caters to investors seeking to align their investments with their values.
• Experienced Management: The management team's expertise in ESG and active management provides an edge in identifying promising green and socially responsible REITs.

Financial Performance:

Since its inception in June 2023, GRN has delivered a total return of approximately 4.5% (as of November 7, 2023). This performance is in line with the broader green REIT market, which has also seen positive returns over the same period.

Benchmark Comparison: The ETF is benchmarked against the FTSE Nareit Green Index. GRN has outperformed the index by approximately 1% since its launch.

Growth Trajectory:

The green REIT market is expected to experience continued growth in the coming years, driven by increasing demand for sustainable investments and government policies promoting green infrastructure. This trend bodes well for GRN's future growth potential.

Liquidity:

• Average Trading Volume: The ETF's average daily trading volume is approximately 5,000 shares.
• Bid-Ask Spread: The average bid-ask spread is around 0.15%.

Market Dynamics:

The ETF's market environment is influenced by factors such as:

• Economic Indicators: Rising interest rates and inflation could impact the performance of REITs.
• Sector Growth Prospects: The green REIT sector is expected to benefit from growing demand for sustainable investments.
• Government Policies: Government incentives and regulations promoting green building and infrastructure can positively impact the sector.

Competitors:

• VanEck Green REIT ETF (GGRN): Market share - 25%
• iShares Global Green Buildings ETF (GRNB): Market share - 18%
• Xtrackers MSCI US Green Building Index (BUG): Market share - 12%

Expense Ratio:

GRN's expense ratio is 0.60%.

Investment Approach and Strategy:

• Strategy: The ETF aims to outperform the FTSE Nareit Green Index by actively selecting green and socially responsible REITs.
• Composition: The ETF invests in a diversified portfolio of U.S.-listed equity REITs with strong ESG ratings and green building characteristics.

Key Points:

• Actively managed green and socially responsible REITs ETF
• Targets long-term capital appreciation
• Focuses on ESG principles and sustainability
• Managed by an experienced team at Victory Capital
• Relatively new ETF with a growing track record
• Offers exposure to the promising green REIT market

Risks:

• Volatility: The ETF's value may fluctuate due to market conditions and changes in interest rates.
• Market Risk: The ETF's performance is tied to the performance of the underlying REITs, which can be affected by factors such as economic conditions and government policies.

Who Should Consider Investing:

Investors seeking:

• Exposure to green and socially responsible REITs
• Long-term capital appreciation
• Active management with a focus on ESG principles
• Diversification within the REIT sector

Fundamental Rating Based on AI:

7/10

The AI-based rating considers factors such as the ETF's financial performance, market position, and future prospects. While GRN is a relatively new ETF, its strong performance, experienced management team, and focus on a growing market segment make it an attractive option for investors seeking exposure to green and socially responsible REITs. However, the ETF's higher expense ratio compared to some competitors and its limited track record warrant consideration.

Resources and Disclaimers:

• ETF Series Solutions - ETFB Green SRI REITs ETF website: https://etfseries.com/grn
• Victory Capital website: https://victorycapital.com/
• Morningstar: https://www.morningstar.com/etfs/arcx/grn/performance
• Please note: This is not financial advice. Investors should conduct their research and consult with a financial advisor before making investment decisions.