JPRE vs PSR

JPRECJPMorgan Realty Income ETF

PSRAInvesco Active U.S. Real Estate ETF

In short

JPRE A REIT strategy with a 1998 vintage that stepped into an ETF wrapper in 2022. Roughly 40 real estate names chosen by J.P. Morgan's analysts rather than set by index weights, with income written into the mandate and paid quarterly.

PSR Active REIT stock-picking without the active price tag: since 2008, PSR has run a tight book of about 30 US property names for 0.35% a year, roughly half the median fee among active US equity ETFs.

Stated mandate

JPRE The fund seeks high total investment return through both capital appreciation and current income.

PSR The Fund seeks high total return through capital appreciation and current income, investing principally in equity real estate investment trusts.

Why people hold it

• JPRE Not a 2022 startup. The strategy ran as a mutual fund from 1998 and was folded into this ETF in a tax-free reorganization, keeping the same objective and a substantially similar strategy.sec.gov
• Analysts pick the names. The prospectus keeps at least 80% of net assets in REIT equity but leaves room for equity or mortgage REITs, including small caps, instead of index weights.sec.gov
• Income is in the job description. The stated objective pairs current income with capital appreciation, and the fund distributes quarterly.

• PSR 0.35% a year against a 0.65% median for active US equity ETFs. Active management without the usual active-management markup.
• Running since 2008, across multiple rate regimes and property cycles, and it sits in the upper half of its active US equity peer group.
• Concentrated by design: about 30 equity REITs, so each holding carries real weight instead of being diluted across the entire property market.invesco.com
• The mandate targets capital appreciation plus current income from equity REITs, and the fund distributes quarterly.invesco.com

Worth knowing

• JPRE Active hands cost more. The fee sits above the category median and well above index-tracking real estate peers such as AVRE at 0.17%.
• Non-diversified by prospectus and roughly 40 holdings, so a handful of big REITs steer the ride far more than in a broad index fund.sec.gov
• It trades thinly next to the category's heavyweights, so the spread at the moment of trade deserves a look.

• PSR Thinly traded. Spreads can widen and larger orders can move the price more than they would in a heavily traded index fund.
• One sector, one economy: US property. When rates jolt REITs, the portfolio has no other sector to lean on.
• Assets stay modest next to the giant index REIT funds, and smaller ETFs generally face a higher bar to stay open over the long haul.

Full JPRE profile⁠

Full PSR profile⁠