PSR vs REIT

PSRAInvesco Active U.S. Real Estate ETF

REITCALPS Active REIT ETF

In short

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.

REIT Real estate, hand-picked. About 30 US REITs chosen name by name instead of a whole-sector scoop, aiming for total return from dividends plus price appreciation. Concentrated on purpose, and it pays quarterly.

Stated mandate

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

REIT The fund seeks total return from dividends and capital appreciation by investing at least 80% of net assets in publicly traded REIT equity securities, primarily US REITs.

Why people hold it

• 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

• REIT Stock picking, not a sector scoop: roughly 30 REITs, each one a deliberate call that carries real weight in the portfolio.
• The mandate is narrow by design: at least 80% of net assets in publicly traded REIT equity, primarily US names. Real estate, not a fund that dabbles in it.alpsfunds.com
• Two ways to get paid are written into the objective: dividend income and capital appreciation. Distributions arrive on a quarterly schedule.
• Holds its own in the upper half of a crowded active US equity peer group, which is not nothing for a niche sector fund.

Worth knowing

• 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.

• REIT Active management costs money: 0.68% a year, a shade above the typical active US equity ETF and multiples of broad low-cost peers like DFAU (0.12%) and AVLC (0.15%).
• Small fund, thin trading. Spreads can widen, especially in fast markets, and limit orders are the usual workaround.
• One sector, about 30 names, launched in 2021: no cushion from the rest of the market, and a short history to judge the manager by.

Full PSR profile⁠

Full REIT profile⁠