is getting closer to its goal of rolling out 45 new ETFs this year with a new family of funds. The REIT-based Adelante Shares Real Estate ETFs
will begin trading today on the NYSE Arca
. The Adelante family includes seven ETFs. XShares recently received an additional $10 million in funding from investor Grail Partners
. In addition, XShares will welcome Bill Henson
from Grail as its new CEO on October 1.
XShares Advisors LLC, a financial services company based in New York, announced that its newest family of funds, Adelante Shares Real Estate Exchange-Traded Funds (ETFs), will begin trading today on the New York Stock Exchange (NYSE Arca). Developed in conjunction with Adelante Shares LLC, the family of funds provides investors with a new approach to investing in real estate investment trusts (REITs).
The Adelante Shares Real Estate family of funds separate the market into six distinct REIT-specific characteristics based on Adelante Shares' proprietary classification of the real-estate sector. These ETFs are also the only equal-weighted REIT ETFs currently in the market.
"We are very pleased to be partnering with Adelante Shares to bring a family of ETFs to the market that are completely different from the other real estate focused investment products already available. Investors now have access to a suite of funds that behave differently than other real estate funds," stated Jeffrey L. Feldman, Founder and Chairman, XShares Group LLC. "At XShares, we are dedicated to developing innovative, creative and differentiated ETFs with strategic partners like Adelante in order to provide investors with unique opportunities and greater flexibility for their investment portfolios."
The Adelante Shares Real Estate family of funds is comprised of seven ETFs that focus on funds from operations (FFO), growth rates (growth vs. value), square footage under management, number of units under management, dividend CAGR (compound annual growth rate) vs. CPI (consumer price index) CAGR and dividend payout ratio along with a composite. The ETFs include:
-- Adelante Shares RE Classics(TM) ETF (ACK): Seeks to capture the greatest amount of U.S. non-residential, non-lodging property. -- Adelante Shares RE Kings(TM) ETF (AKB): Seeks to capture REITs with conservative dividends.
-- Adelante Shares RE Shelter(TM) ETF (AQS): Seeks to capture the residential real estate sector. -- Adelante Shares RE Yield Plus(TM) ETF (ATY): Seeks to capture inflationprotected real estate exposure (Dividend CAGR vs CPI CAGR). -- Adelante Shares RE Growth(TM) ETF (AGV): Seeks to capture the fastest growing REIT companies based on FFO.
-- Adelante Shares RE Value(TM) ETF (AVU): Seeks to capture undervalued REITs. -- Adelante Shares RE Composite(TM) ETF (ACB): Holds the largest 40 securities by market cap from each of the six indexes currently in the family.
"We are excited to be working with XShares to launch these new products which provide investors with a unique way to access the real estate market through specific, dynamic characteristics of the sector instead of just asset type," said Michael A. Torres, Managing Director at Adelante Shares LLC. "We believe that the market will benefit from our insight of the real estate market as well as our proprietary classifications of the sector, in addition to XShares' track record for delivering innovative investment products."
Each Adelante Shares Real Estate ETF is comprised of 25 stocks, excluding the Adelante Shares RE Composite ETF which holds 40 stocks. These include REITs and REOCs (real estate operating companies). Each Index composition calculation is administered independently by Standard & Poor's (S&P).
About XShares Advisors
XShares Advisors LLC is a registered investment advisor that provides investment advisory services to Exchange Traded Funds. XShares also partners with major institutions and index providers seeking to bring innovative Exchange Traded Funds to market using its administrative platform. In addition, XShares both creates and licenses distinctive intellectual property for its ETFs, developing products that allow for innovative trading strategies and alternative investments for the financial community. For more information, visit the company's website at: http://www.xsharesadvisors.com/.
About Adelante Shares LLC
Adelante Shares LLC is the creator of the underlying indexes for the Adelante Shares Real Estate Exchange Traded Funds (ETFs) and a wholly owned subsidiary of ACM Acquisition LLC. Led by Michael A. Torres, who created one of the principal real estate securities indexes in 1991, Adelante Shares has developed a proprietary classification of the real-estate sector, dividing the market into six distinct REIT-specific fundamental characteristics. The Adelante Shares Real Estate ETFs are traded on the New York Stock Exchange under the ticker symbols ACK, AKB, AQS, ATY, AGV, AVU and ACB. For more information, please visit: http://www.adelanteshares.com/.
An Investor should consider the fund's investment objective, risks, charges and expenses carefully before investing. For this and more complete information about the fund visit the website http://www.adelanteshares.com/ for a prospectus. Please read the prospectus carefully before investing.
There are risks involved with investing in ETFs including possible loss of money. Adelante Shares ETFs are not actively managed and are subject to risks similar to stocks, including those related to short selling and margin maintenance. Losses from short sales may be unlimited, and losses from purchases on margin may exceed original investment. Ordinary brokerage commissions apply.
The ETFs face additional risks attributable to their investments in small and medium capitalization companies which are subject to higher volatility than larger, more established companies. In addition, they are invested in a limited number of securities and a decline in the value of these investments would cause the fund's overall value to decline to a greater degree than in a less concentrated portfolio.
Global or International Funds invest in foreign securities that will be subject to certain risks not associated with domestic securities, such as currency fluctuations, and changes in political and economic conditions.
There is no assurance that the investment process will consistently lead to successful investing. Diversification does not eliminate the risk of experiencing investment losses.
Adelante Shares ETFs are subject to increased risks associated with investing in a specific sector compared to a more diversified investment, as well as unique risks associated with the real estate sector.
The prospectus is not an offer to buy or sell the portfolio shares, nor is the fund soliciting an offer to buy its shares in any jurisdiction where the offer or sale is not permitted.
Adelante Shares Funds are distributed by ALPS Distributors, Inc. Adelante Shares, XShares Advisors LLC and ALPS Distributors, Inc. are unaffiliated entities.
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