What Is the AVRE ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
An active ETF that offers low-cost diversification across high-quality global real estate REITs, pursuing both value and profitability.
SubscribeWhat Is This ETF?
Rather than following an approach similar to the S-Network Space index, this fund uses the S&P Global REIT Index as its benchmark while moving away from a simple market-cap-weighted method, building its portfolio with added value and quality factors. Its investment scope is broad, covering real estate assets in emerging markets as well as developed markets.
It suits long-term investors who want the income from real estate assets together with factor-based investing, aiming for excess returns in the global real estate market.
It is an actively managed ETF launched by Avantis in 2021.
How Does It Invest?
| Item | Details |
|---|---|
| Benchmark | S&P Global REIT Index (targeting excess returns) |
| Management Style | Active (factor-based screening) |
| Rebalancing Frequency | As needed (active management) |
| Dividend Frequency | Quarterly |
| Total Expense Ratio | 0.17% |
The fund uses a strategy that overweights REITs with strong profitability and relatively undervalued stocks. It holds more than 300 securities to spread out individual risk, and it runs an efficient trading process that minimizes transaction costs.
- Factor-based security selection combining value and profitability
- Broad exposure to the global real estate market
Size and Costs
Assets under management (AUM) stand at $882.5M, and the Expense Ratio is 0.17% per year.
Despite being an active fund, its fees are very low, which is a major strength in terms of cost efficiency for long-term holders.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeVolatility has appeared across the real estate sector as interest rate conditions change, but a portfolio centered on high-quality REITs with solid financial structures has shown relative stability. Growth in data center and specialty REITs has also helped drive performance.
As expectations build that interest rates have peaked and dividend appeal comes into focus, capital inflows into the real estate sector are gradually recovering. Demand remains steady for investments backed by real assets as an inflation hedge.
Strengths and Weaknesses
You can actively invest in high-quality global real estate stocks at a low cost, but you need to be aware of the high sensitivity to interest rates and the risks unique to the real estate market.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
DRAM, VOLT, and CANC, which can be seen in the table, are active products focused on specific themes and differ in nature from AVRE, but they all share the trait of using active strategies. If you are looking for direct competitors within the real estate sector, there is the global REIT fund REET, and if you want to focus only on the US market, VNQ and SCHH are also excellent alternatives.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 DRAM | Roundhill Memory ETF | $48.01 | -7.2% | $20.1B | 0.65% | - | - |
 SECT | Main Sector Rotation ETF | $70.58 | -2.5% | $2.9B | 0.69% | 0.7% | +10.0% |
 VOLT | Tema Electrification ETF | $33.95 | -2.5% | $995.9M | 0.75% | 0.26% | +11.2% |
 CANC | Tema Oncology ETF | $42.29 | -0.1% | $216.2M | 0.75% | 0.05% | +37.6% |
 HRTS | Tema Heart & Health ETF | $38.87 | +0.9% | $57.1M | 0.75% | 1.22% | +19.6% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| WELL | Welltower Inc | 0.21% | $234.60 | +0.6% | $172.1B | - | 1.35% |
| PLD | Prologis Inc | 0.20% | $127.98 | -0.0% | $124.1B | 28.2 | 3.34% |
| EQIX | Equinix Inc | 0.16% | $1013.70 | -2.2% | $100.3B | 60.9 | 2.04% |
| AMT | American Tower Corp | 0.05% | $187.78 | +1.0% | $87.1B | 26.5 | 3.81% |
Investor Checkpoints
Before adding AVRE, which layers a distinctive factor-based approach onto the growth of the global real estate market, to your portfolio, you should review the following points carefully.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📈 Interest Rate Sensitivity | Check how rate policy changes by the Fed and major economies worldwide affect REITs | Monitor continuously |
| 📊 Factor Reflection | Verify that value and profitability metrics are well reflected in the actual portfolio construction | Regular review |
| 💵 Fee Adequacy | Assess cost efficiency relative to similar global REIT ETFs | Top tier |
| 📅 Dividend Stability | Confirm the holdings' ability to generate cash flow and sustain dividends | Maintained |
The real estate sector is highly sensitive to macroeconomic interest rate levels and economic conditions, so you should check in advance its correlation with other asset classes in your portfolio during market downturns.
It is an efficient choice for investors who want to actively hold high-quality global real estate stocks at a low fee. It is well suited for pursuing long-term performance by applying the advantages of factor-based investing to real estate assets.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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