LPRE ETF Looks Past REITs To Capture 'Greater' Real Estate Economy

Real estate investing is no longer about buildings alone—and Long Pond Capital appears to understand that.

The company just debuted its first ETF, the Long Pond Real Estate Select ETF LPRE, and it’s taking a more expansive view of what it means to invest in real estate. Instead of concentrating on traditional real estate investment trusts (REITs), LPRE is targeting the whole “greater real estate economy,” as outlined in its prospectus.

So what does that look like in action?

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The fund focuses on mid- to large-cap stocks that earn most of their income from real estate-related businesses. That does mean REITs, naturally, but it also means real estate common stocks and firms serving the industry, even if they don’t fit neatly into the real estate category. That might include infrastructure companies, service companies, or even technology companies with heavy real estate exposure.

LPRE intends to maintain a fairly focused portfolio of around 30 companies at any given moment. But it’s not merely taking names from a list. The portfolio managers engage in a deep-dive, fundamentals-driven approach, scrutinizing each company’s financial well-being, management, and potential for long-term value.

In the background, Exchange Traded Concepts serves as the advisor to the fund, with Long Pond Capital providing the subadviser services. A team of veteran managers, consisting of John Khoury, Andrew Serowik, Todd Alberico, Gabriel Tan, and Brian Cooper, oversees the fund. LPRE has an expense ratio of 1.10%.

For investors, real estate ETFs have been a standard choice for diversification—providing exposure to the real estate market without the hassle or expense of actually owning property. LPRE does the same but with a twist by expanding its focus beyond standard REIT-biased strategies.

As the real estate space continues to mature, LPRE is wagering that a wider lens might reveal new opportunities for long-term growth.

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