The Kelly Residential & Apartment Real Estate ETF Cuts Net Fee to Zero, Making RESI the Lowest Cost Real Estate ETF
Kelly ETFs has reduced the net expense ratio of the Kelly Residential & Apartment Real Estate ETF (NYSE Arca: RESI) to zero through a fee waiver agreement, effective for at least one year. This ETF focuses on the residential real estate sector, including single-family homes and apartment buildings, aiming to provide investors with a hedge against inflation. The firm cites strong household growth and low housing supply as potential growth drivers. However, risks associated with real estate investment, including market volatility and the limited operating history of the fund, should be considered.
- Net expense ratio of RESI ETF reduced to zero, enhancing investor appeal.
- Focus on the residential real estate sector aligns with strong demand and inflationary pressures.
- Investment risks include market volatility and reliance on REITs, which may bear additional fees.
- Limited operating history of the RESI ETF poses risks for prospective investors.
The Proposed Fee Waiver Agreement Will Contractually Be in Place for at Least a Year
The RESI ETF was the first pure play ETF focusing on the residential and multifamily real estate sector with companies specializing in single-family residential homes, apartment buildings, student housing and manufactured homes.
“We believe the inflationary pricing power of our constituents, coupled with their necessity and strong demand, provides a compelling investment opportunity. Single family rentals and apartments, REITs reset their rents every year, which can serve as a hedge against inflation. Now investors can capture the benefits of investing in publicly traded residential REITs at a compelling expense ratio – zero,” said
“Historically low housing supply comes at a time when household growth – the primary driver of housing demand – is strong and accelerating,” noted
Kelly Intelligence is the adviser, and index provider, for the RESI ETF. To learn more about Kelly ETFs and its product suite, please visit KellyETFs.com.
About Kelly ETFs
Kelly ETFs strives to create disruptive exchange-traded funds (ETFs) that offer investors the opportunity to capture highly liquid, pure-play exposure to the best-in-class companies identified in each emerging theme or sector. Based in
Residential and Apartment Real Estate Companies Investing Risk. Real estate is highly sensitive to general and local economic conditions and developments. The
Limited Operating History Risk. The Fund is a recently organized investment company with a limited operating history. As a result, prospective investors have a limited track record or history on which to base their investment decision.
REIT Investment Risk. REITs may have limited financial resources, may trade less frequently and in limited volume, and may be more volatile than other securities. In addition, to the extent the Fund holds interests in REITs, it is expected that investors in the Fund will bear two layers of asset-based management fees and expenses (directly at the Fund level and indirectly at the REIT level). The risks of investing in REITs include certain risks associated with the direct ownership of real estate and the real estate industry in general.
With respect to the Kelly Residential & Apartment Real Estate ETF, the Adviser has agreed to reduce its unitary management fee to
Before investing carefully consider a fund’s investment objective, risks, charges, and expenses contained in the prospectus available at KellyETFs.com. Read carefully before investing.
Distributor:
View source version on businesswire.com: https://www.businesswire.com/news/home/20220502005237/en/
Krista@KellyIntel.com
Source: Kelly ETFs
FAQ
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