ALPS and Cohen & Steers Launch Global Real Estate ETF
The new Cohen & Steers Global Realty Majors ETF (Amex: GRI), which
began trading today, is advised by ALPS Advisers, Inc. The index is
provided by Cohen & Steers. The ETF seeks investment results that
correspond to the performance of the Cohen & Steers Global Realty Majors
Index, which comprises securities of companies that have been evaluated on
management strength and track record, market position, and the composition
and quality of their real estate portfolios, among other factors.
Cohen & Steers Global Realty Majors ETF targets 75 industry-leading
real estate companies from an initial universe of 500 that are located in
developed markets across North America, Asia Pacific and Europe. The
companies are selected through a bottom-up process that uses quantitative
screens and qualitative analysis to identify those real estate companies
that are best positioned to gain from the securitization of global real
estate. This gives investors exposure to asset class diversification, an
opportunity to participate in the global growth of real estate securities
and direct participation in local economic growth.
Incorporating real estate securities into an ETF structure may provide
investors with the low expenses, tax efficiency, transparency and liquidity
that ETFs provide, along with an opportunity to benefit from the
potentially substantial and growing long-term income streams and
diversification benefits that real estate securities may provide.
“By partnering with a real estate securities pioneer like Cohen &
Steers to develop this ETF, we are offering investors a best-in-class
approach to participating in the global real estate market,” said Tom
Carter, Managing Director of ALPS. “Cohen & Steers has established an
impressive track record in real estate securities analysis and investment
that we believe will make this ETF a category leader.”
Many governments around the world have introduced or are evaluating the
introduction of real estate investment structures similar to U.S. REITs.
The reasons are clear: REITs give companies the potential to create
substantial, long-term income streams and offer the opportunity for
significant market growth. In fact, as a result of the emergence of
REIT-like structures, the total market capitalization of global real estate
securities has already increased from $110 billion in 1992 to $1.1 trillion
in 2007.*
“We’re pleased to be able to offer investors access to global real
estate securities through an ETF,” said Martin Cohen, Co-Chairman and
Co-Chief Executive Officer of Cohen & Steers. “In our view, real estate is
one of the best and most direct ways to invest in a country’s or region’s
economy, which makes it a powerful tool for diversification.”
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