WisdomTree has today (10 February) expanded its thematic ETF range with its new real estate ETF that seeks to capture the trend of the so-called ‘new economy'.
The New Economy Real Estate UCITS ETF provides exposure to real estate companies which are exposed to "tech and science-related megatrends" and is the sixth ETF in the company's $1.2bn thematic equity ETF range.
WisdomTree said that the ‘new economy' includes sectors such as cloud computing, 4G and 5G connectivity, logistics and supply chain, and life sciences. Therefore, real estate businesses associated with those sectors will be invested in, such as data centres, telecommunication towers and logistics warehouses.
In developing the ETF, WisdomTree worked with CenterSquare Investment, which focuses on actively-managed public and private real estate and private real estate debt strategies, being the largest independently-owned active REIT manager globally and one of the ten largest active REITs managers in the world.
Mediolanum launches circular economy fund
Christopher Gannatti, global head of research at WisdomTree, said: "Real estate is integral to the evolution of technologies which are being used to underpin many megatrends. Without very specific types of real estate infrastructure, technological advancements and innovations would be limited and develop at a sub-optimal pace.
"Providing exposure to the infrastructure, powering the new economy, allows investors to take an alternative approach to megatrend investing and represents an exciting opportunity at the verge of thematic investing and real estate. Through the strategy, investors can potentially benefit from the cutting-edge technology and industries which could be the driving force for economic growth over the long-term."
Alexis Marinof, head of Europe for WisdomTree, added that "many investors are taking a new approach to asset allocation with themes replacing geographical allocations. Against this backdrop, 2021 was another record year in Europe for thematic ETFs with $15.3bn of inflows as investors look to megatrends to power their portfolios for long-term growth opportunities."
The ETF is listed on the London Stock Exchange, Börse Xetra and Borsa Italiana, and tracks the CenterSquare New Economy Real Estate UCITS Index with a total expense ratio of 0.45%.
