When real estate flies through the roof, consider this ETF



Low supply and high demand lead to higher property prices and IQ US Real Estate Small Cap ETF (ROOF) through the roof.

Economic recovery could attract more sellers to the market and help meet demand. Meanwhile, ROOF provides investors with small-cap housing opportunities.

ROOF is committed to investment performance that broadly matches the price and yield of the underlying IQ US Real Estate Small Cap Index. The fund invests at least 80% of its net assets, plus the amount of any loans for investment purposes, in investments included in its index.

The Index is a rule-based, capitalized, weighted and floating-adjusted index designed to enable investors to track the overall performance of the small-cap sector of publicly traded companies that are listed and predominantly listed in the United States and investing in real estate. …

ROOF investors get access to:

  • Varied exposition: Impact on seven major REIT sectors, including the specialty, retail and office industries.
  • Potential return: REITs pay 90% or more of their annual taxable income, resulting in stable cash flows that can offer attractive risk-adjusted returns.
  • Extended real estate Capabilities: Small-cap REITs offer the benefits of diversification by targeting smaller real estate, making them a suitable complement to large-cap REIT positions.


Cash transactions highlight the strength of the seller’s market

One observation of the post-pandemic residential property market is the strength of the cash transaction. Cash can help entice a home offer because it gives sellers the opportunity to accept a deal without the buyer having to apply for a mortgage.

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