Tierra Funds launches first ETF focused on Latin American real estate

Dec 3rd, 2015 | By | Category: Alternatives / Multi-Asset

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Tierra Funds, an exchange-traded fund sponsor focused on the Americas region, has introduced the Tierra XP Latin America Real Estate ETF (LARE), the first US listed ETF to deliver access to real estate investment trusts (REITs) and real estate operating companies (REOCs) in Latin America.

Tierra Funds launches first ETF focused on Latin American real estate

The ETF offers exposure to a combination of Mexican and Brazilian REITs, as well as major real estate equities in Mexico, Brazil (pictured), and Chile.

The ETF is designed to tap into the growth potential and opportunities in the Latin American property market. “LARE offers investors both current income and growth potential as well as access to local real estate equities that are otherwise not available in competing products,” said James Anderson, Managing Partner at Tierra Funds. “Favorable demographics, continued economic integration, and expanding local capital markets suggest that Latin America real estate may be a compelling addition to a portfolio.”

Tierra XP have partnered with ETF Managers Group, a white-label services provider to the exchange-traded funds industry, in launching the ETF. “We are excited to be involved in another first-to-market ETF,” said Sam Masucci, founder and CEO of ETF Managers Group. “We believe that LARE is an excellent way to access this market segment and provide an investment portfolio with balanced exposure.”

The ETF seeks to replicate the performance of the Solactive Latin America Real Estate Index by holding a combination of Mexican and Brazilian REITs, as well as major real estate equities in Mexico, Brazil, and Chile. Currently REITs and REOCs represent approximately 54% and 46%, respectively, of the fund’s 52 components.

Listed on NYSE Arca the ETF carries an expense ratio of 0.79%.

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