Fundamental Income, the sponsor of the Fundamental Income Net Lease Real Estate Index (NETLXT), which powers the NETLease Corporate Real Estate ETF (NYSE: NETL) (the Fund), rang the Closing Bell at the New York Stock Exchange to commemorate NETL surpassing $40 million in assets under management as of January 22, 2020.
Launched in partnership with Exchange Traded Concepts on March 22, 2019, NETL remains the first and only ETF to offer investors pure-play exposure to Net Lease Real Estate Investment Trusts (REITs), one of the fastest-growing sectors within the REIT space. Net Lease REITs provide sustainable cash flows and identifiable growth by leasing their properties through long-term contractual leases on a net lease basis.
NETL is designed to offer investors pure access to the rapidly growing public, U.S. net lease real estate sector, which as defined by NETL, currently includes 23 publicly traded net lease REITs totaling over $124 billion in cumulative market cap. NETL provides exposure to over 23,500 properties, over 2,000 tenants and over 40 different classifications of industries.
These Net Lease REITs focus solely on single-tenant, free-standing properties, and exclude mall and shopping center REITs, multi-tenant office REITs, multi-family REITs, and residential REITs, amongst others.
NETL is a passive, rules based ETF that tracks the Fundamental Income Net Lease Real Estate Index (NETLXT), calculated by NASDAQ. From March 22, 2019 through December 31, 2019, NETL returned 12.36%.
Performance data represents past performance and does not guarantee future results. An investor’s return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than performance data quoted. Performance data current to the most recent month-end can be obtained by calling 800-617-0004. The gross expense ratio for NETL is 0.60%.
For more information on Fundamental Income, please visit www.fundamentalincome.com.
About Fundamental Income
Founded in 2018 and headquartered in Phoenix, Arizona, Fundamental Income was created to identify and create investment strategies rooted in solid, understandable fundamentals focused on generating sustainable income with predictable growth. The Fundamental Income Net Lease Real Estate Index (NETLXT), calculated by NASDAQ, was constructed on December 21, 2018 to define and track the publicly traded Net Lease REIT sector. The firms principals are proven leaders and innovators within the Net Lease REIT community and have extensive experience in Net Lease Real Estate, capital markets and credit opportunities with over $13 billion of transaction experience.
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 NETLease ETF please call 1-405-778-8377 or visit the website at www.Netleaseetf.com. Read the prospectus or summary prospectus carefully before investing.
Investments involves risk. Principal loss is possible. The fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Index, and consequently the Fund, is expected to concentrate its investments in real estate companies. As a result, the value of the Fund’s shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries.
Investments in real estate companies and REITs involve unique risks, including limited financial resources, they may trade less frequently and in limited volume, and they may be more volatile than other securities. In addition, securities in the real estate sector are subject to certain risks associated with direct ownership of real estate and the risk that the value of their underlying real estate may go down. Companies in the Net Lease Real Estate sector may be affected by unique factors related to leasing properties to single tenants including dependence on the financial performance of its’ tenants and lease terms related to rent escalations based on economic measurements. The fund may invest in foreign securities which involves political, economic and currency risks, differences in accounting methods and greater volatility. Investments in small and mid-sized companies have historically been subject to greater investment risk than large company stocks.
Definitions: A Triple Net lease is a form of real-estate lease agreement where the tenant or lessee is responsible for the ongoing expenses of the property, including real estate taxes, building insurance, and maintenance, in addition to paying the rent and utilities. Cash Flow is the net amount of cash and cash-equivalents being transferred into and out of a business. The Fundamental Income Net Lease Real Estate Index is a selection of qualifying equity REITs that own properties leased to single tenants under long-term, net lease agreements which specify that the tenant is responsible for paying rent and most, if not all, property expenses. It is not possible to invest directly in an index.
The NETLease Corporate Real Estate ETF is distributed by Quasar Distributors, LLC.
Caitlyn Foster, 610-228-2056