PPTY. The real estate ETF for investors
who know location, property type, and leverage matter.

Why invest in real estate?

Real estate is an important component of any diversified portfolio due to its low correlation 1 with other asset classes and unique characteristics such as:

  • Potential Inflation Protection: Because commercial rental agreements of properties held by REITS often contain inflation-linked rental escalation clauses and tenants are generally responsible for operating costs, real estate has historically served as an effective inflation hedge.
  • Dividend Income: Since REITs must pay 90% of their earnings to shareholders through dividends, they have historically served as a source of income to investors. (a)
  • History of High Returns: Among the best performing asset classes historically, across economic environments. (b) (c)

This unique combination of characteristics – a historical track record of inflation protection, income generation, and attractive returns – drive the diversification benefits seen from incorporating real estate in long-term portfolios. (c)

How to invest in real estate?

We believe investors should consider four primary factors when investing in real estate:

  • Location: Location is a key driver of real estate performance. We use stable targets to obtain diversified geographic exposure that favors dynamic, high-growth locations
  • Property Type: Apartment or office? Industrial or retail? Differences between property types matter. We use fixed allocations to ensure diversification and balance
  • Leverage: Responsible use of leverage can enhance returns, but too much debt is dangerous. We favor companies with prudent leverage
  • Governance: Firms with significant governance risks such as external management are excluded from our portfolio

(a) Please note that companies cannot guarantee that they will always be able to pay or increase their dividends.

(b) Source: de Bever, Leo, Stanton, Richard, Van Nieuwerburgh, Stijn, A review of real estate and infrastructure investments by the Norwegian Government Pension Fund Global, December 1, 2015.

(c) Past performance is not indicative of future results.

About PPTY

U.S. Diversified Real Estate ETF (PPTY) is designed for investors who know that location, property type, and leverage matter. PPTY is a rules-based fund that uses stable geographic and property type targets to provide diversified exposure to U.S. real estate. Our portfolio is constructed based on the actual properties held by each company in our investment universe. This focus on the underlying real estate allows PPTY to deliver consistent exposure and reliable diversification.

About Vident Financial

Vident Financial was founded in 2014 and grew from a Principles-Based philosophy. We implement that Principles-Based philosophy in the construction, management and research of our solutions.

PPTY Quick Look

ETF Info As of: 03/22/2019
Ticker PPTY
Index Calculator Solactive
CUSIP 26922A511
Net Assets $107,305,302.23
Shares Outstanding 3,600,000
Number of Holdings 116
Premium/Discount 0.07%

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The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus and summary prospectus (PPTY) contains this and other important information about the investment company, and a free hardcopy of the prospectus may be obtained by calling 1-800-617-0004. Read carefully before investing.

Investments involve risk. Principal loss is possible. The Funds have the same risks as the underlying securities traded on the exchange throughout the day at market price. The Fund’s investments will be concentrated in an industry or group of industries to the extent the Index is so concentrated, and the Index is expected to be concentrated in real estate-related industries. The composition of the Index is heavily dependent on a proprietary quantitative model as well as information and data supplied by third parties (“Models and Data”). The Fund is a recently organized, non-diversified management investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision. the Fund will be considered to be non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. The Fund is expected to invest substantially all of its assets in real estate-related companies. Investments in real estate companies involve unique risks. Real estate companies, including REITs, may have limited financial resources, may trade less frequently and in limited volume, and may be more volatile than other securities. The risks of investing in real estate companies include certain risks associated with the direct ownership of real estate and the real estate industry in general. Securities in the real estate sector are subject to the risk that the value of their underlying real estate may go down. As with all ETFs, Shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of Shares will approximate the Fund’s NAV, there may be times when the market price of Shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply and demand of Shares or during periods of market volatility. The equity securities of smaller companies have historically been subject to greater investment risk than securities of larger companies.

The Vident Funds are distributed by Quasar Distributors, LLC. The fund's investment advisor is Exchange Traded Concepts LLC. PPTY sub-advisor is Vident Investment Advisory (VIA). Vident Financial owns the indexes that underline the funds. Quasar is not affiliated with Vident Financial, Exchange Traded Concepts, or Vident Investment Advisory.

Diversification does not guarantee a profit or protect from loss in a declining market.

1 Correlation is a mutual relationship or connection between two or more things.