Armada ETF Advisors, a financial services firm based in Pensacola, Fla., has launched an ETF based on residential real estate, the firm announced yesterday.
The new fund, which was created in partnership with Tidal ETF Services, is the Home Appreciation U.S. REIT ETF (the ticker symbol on the New York Stock Exchange is “HAUS.”) The fund invests in publicly traded real estate investment trusts (REITs) that derive their revenue from ownership or management of residential properties.
The United States is experiencing a sustained, structural housing shortage aggravated in recent years by a lack of new construction, which has created short- and long-term investment opportunities in residential housing, Armada said.
“Unlike other real estate ETFs that invest in stocks associated with real estate, HAUS will give investors access to REITs, which invest directly in residential real estate assets,” Armada said. REIT holdings must generate at least 75% of their revenues from multifamily housing, manufactured housing, single-family rental housing or senior housing.
“With inflation near record highs, a real estate allocation provides diversification to a traditional stock-bond portfolio,” said David Auerbach, managing director of Armada ETF Advisors, in a statement. “Through its underlying REIT investments, HAUS offers investors potential additional income benefits, including quarterly dividend payouts and potential appreciation.”
“Real estate is personal. Having a roof over your head is something every person thinks and worries about,” said Justin Goldberg, CEO of Armada ETF Advisors, in a statement. “While homeownership or the ability to invest in individual properties may be out of reach for many, our goal is to provide access to real estate through the flexible ETF wrapper.”