NYLI CBRE Real Assets ETF (IQRA) seeks to provide exposure to real assets including real estate, infrastructure, commodities, and natural resources through a diversified portfolio. This strategy targets assets that historically provide inflation protection and portfolio diversification benefits beyond traditional stocks and bonds.
How It Works
The fund employs an actively managed approach, selecting securities across multiple real asset categories including REITs, infrastructure companies, commodity producers, and natural resource firms. Portfolio construction focuses on companies with tangible asset backing and inflation-hedging characteristics. The management team uses fundamental analysis to identify undervalued opportunities while maintaining diversification across real asset sub-sectors and geographies.
Key Features
- Launched in May 2023, providing access to CBRE's institutional real estate expertise in ETF format
- Zero expense ratio structure makes it cost-competitive among real assets ETFs during promotional period
- 2.76% dividend yield offers income generation from underlying real asset distributions and dividends
Risks
- This ETF can lose value when interest rates rise, as real assets like REITs are sensitive to rate changes and borrowing costs
- Commodity price volatility can cause significant swings in underlying holdings, potentially leading to 20-30% declines during commodity bear markets
- Being newly launched with limited assets, the fund faces liquidity constraints and potential closure risk if it fails to attract sufficient investor interest
Who Should Own This
Best suited as a satellite holding (5-15% of total portfolio) for investors with 3+ year time horizons seeking inflation protection and portfolio diversification. Medium-to-high risk tolerance required due to real asset volatility. Appropriate for investors building comprehensive asset allocation strategies or hedging against inflation concerns.