The DPRE ETF does not replicate the performance of a specific index. Instead, it actively selects securities in the real estate industry that seek both income and capital performance. It spans REIT equities, preferred stocks, and real estate related debt securities, aiming for a composition that differs from investing in a single type of real estate stock.

It suits investors who want real estate related income exposure and who understand and can accept active security selection and asset allocation rather than an index-tracking approach.

It is an ETF with an active management approach, managed by Virtus.

This is an active strategy that uses REIT equities, real estate related preferred stocks, and debt securities across the real estate sub-sectors. Top holdings include WELL, PLD, EQIX, DLR, and SPG, covering the distinct demand drivers of healthcare facilities, logistics, data centers, digital infrastructure, and retail real estate. Combining equity exposure with income-oriented securities is designed to reduce concentration in a single asset class.

• Active asset allocation without tracking an index
• Combined use of real estate equity and income-oriented securities

Assets under management (AUM) stand at $3.8M, and the total expense ratio is 0.59% per year.

Unlike index-tracking real estate ETFs, security selection and asset class allocation can affect performance and volatility. Before trading, it is worth checking the gap between market price and net asset value, as well as trading conditions.

The trajectory of real estate related securities can diverge depending on the direction of interest rates, lending conditions, rental demand, and supply changes by property type. Because the DPRE ETF uses preferred stocks and debt securities in addition to equities, it may react differently from a pure REIT stock price trend.

Fund flows into real estate sector ETFs are influenced by interest rate expectations, income preferences, and market perceptions of commercial real estate. For active products, the management philosophy and the makeup of the holdings matter more than for products tracking the same index, so investors should review portfolio disclosures and trading conditions together.

Its distinguishing feature is active management that combines real estate equity with income-oriented securities, but investors must accept volatility tied to changes in interest rates and the real estate cycle.

The VNQ ETF shown in the table is a comparison candidate seeking broad real estate equity exposure, while the SCHH ETF can serve as a benchmark for investors who prioritize low fees. The XLRE ETF offers exposure centered on large-cap real estate sector companies, and the USRT ETF and IYR ETF are options in the similar US real estate category with different asset sizes and fee structures. Unlike these index-tracking products, the DPRE ETF requires investors to also consider its active security selection and use of debt securities.

When evaluating the DPRE ETF, investors should understand its management structure, which uses equity and debt securities together, rather than judging it only on the outlook for the real estate sector. Based on the information provided, the absence of a distribution history, trading conditions, and market price relative to net asset value are also items to check in advance.

Real estate securities are affected by interest rates, the credit environment, rental demand, and supply changes by property type. Even with a structure that holds equity and debt securities together, the risk of loss does not disappear, and the gap between an ETF's market price and its net asset value can also affect investment results.

The Virtus Duff & Phelps Real Estate Income ETF can be a candidate for investors who want to build real estate related income exposure actively. However, it is advisable to approach it only after confirming the effects of the lack of distribution history, interest rate sensitivity, and active management decisions, and after comparing its structure with index-tracking products.