NEW YORK–(BUSINESS WIRE)–Amid the ongoing boom in residential real estate, Armada ETF Advisors, LLC, in partnership with Tidal ETF Services, LLC (Tidal), launches the Home Appreciation U.S. REIT ETF (NYSE: HAUS) as the first active, pure-play U.S. residential real estate exchange-traded fund (ETF). The fund invests in publicly-traded real estate investment trusts (REITs) that derive their revenue from ownership and/or management of residential properties.
The United States is experiencing a sustained, structural housing shortage aggravated in recent years by lack of building, creating short and long-term investment opportunities in residential housing. Unlike other real estate ETFs that invest in stocks associated with real estate, HAUS allows investors access to REITs, which invest directly in residential real estate assets. REIT holdings must generate at least 75% of its revenue from the following categories of prosperity: multifamily housing, manufactured housing, single-family rental housing, or senior housing.
“Real estate touches every investor, from young to old,” says David Auerbach, Managing Director of Armada ETF Advisors, LLC. “With inflation near record highs, a real estate allocation provides diversification to a traditional stock/bond portfolio. Through its underlying REIT investments, HAUS offers investors potential additional income benefits, including quarterly dividend payouts and potential appreciation.”1
Armada ETF Advisors, LLC combines the expertise of the portfolio management team with a high-profile, sector-specific Advisory Board with experience across the residential housing market, publicly-traded residential REITs and ETFs. The Advisory Board will help identify early trends, regional strengths and cycles to maximize the ETF’s core specialty.
“Real estate is personal. Having a roof over your head is something every person thinks and worries about,” notes Justin Goldberg, CEO of Armada ETF Advisors, LLC. “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.”
Toroso Investments, LLC serves as the fund’s advisor and Armanda ETF Advisors, LLC as its sub-advisor. For more information on Armada ETF Advisors, LLC and HAUS, visit: http://armadaetfs.com/
1 The Fund intends to pay quarterly dividends, but they are not guaranteed.
About Armada ETF Advisors, LLC
At Armada ETF Advisors, we believe that real estate is personal. Every individual – across all ages and socioeconomic levels – touches real estate. While ownership or the ability to invest in property may be out of reach for many, our goal is to provide broad access to the real estate asset class. We invest in publicly traded real estate investment trusts, or REITs, which themselves make investments in income-producing real estate. By packaging REITs in an exchange-traded fund (ETF), we provide diversified real estate exposure via a liquid, tax-efficient and easy-to-access vehicle. Learn more about what makes Armada ETF Advisors different here.
About Tidal ETF Services
Formed by ETF industry pioneers and thought leaders, Tidal ETF Services, LLC sets out to thoughtfully disrupt the way ETFs have historically been developed, launched, marketed, and sold. With a focus on helping ETF issuers, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring lasting ideas to market. We are advocates for ETF innovation on a mission to help issuers efficiently and effectively launch their ETFs and optimize their growth potential in a highly competitive space. Learn more at tidaletfservices.com.
Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (800) 693-8288 or visit our website at www.armadaetfs.com. Read the prospectus or summary prospectus carefully before investing.
Investments involve risk. Principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. Brokerage commissions may apply and would reduce returns. The fund is new and has limited operating history to judge.
Fund Risks: The Fund is classified as a non-diversified investment company. The Fund may invest a greater portion of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund. To the extent that the Fund invests in other funds, a shareholder will bear two layers of asset-based expenses, which could reduce returns compared to a direct investment in the underlying funds.
Through its investments in REITs, the Fund is subject to the risks of investing in the real estate market, including decreases in property revenues, increases in interest rates, increases in property taxes and operating expenses, legal and regulatory changes, a lack of credit or capital, defaults by borrowers or tenants, environmental problems, and natural disasters. The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund’s gains or losses.
The Fund may invest in debt securities which are subject to the risks of an issuer’s inability to meet its obligations under the security; failure of an issuer or borrower to pay principal and interest when due; and interest rate changes affect the prices of fixed income securities. In addition, an increase in prevailing interest rates typically causes the value of existing fixed income securities to fall and often has a greater impact on longer duration and/or higher quality fixed income securities.
Unlike typical exchange-traded funds, there are no indexes that the Funds attempt to track or replicate. Thus, the ability of the Funds to achieve its objectives will depend on the effectiveness of the portfolio manager. In general, ETFs can be tax efficient. ETFs are subject to capital gains tax and taxation of dividend income. However, ETFs are structured in such a manner that taxes are generally minimized for the holder of the ETF. An ETF manager accommodates investment inflows and outflows by creating or redeeming “creation units,” which are baskets of assets. As a result, the investor usually is not exposed to capital gains on any individual security in the underlying portfolio. However, capital gains tax may be incurred by the investor after the ETF is sold.
Investment Objective: The Home Appreciation U.S. REIT ETF (the “Fund”) seeks total return.
Distributed by Foreside Fund Services, LLC.
Gregory FCA for Armada ETFs