Kelly Residential and Apartment Real Estate ETF Cuts Net Fees to Zero, Making RESI the Cheapest Real Estate ETF
The proposed fee waiver agreement will be contractually in place for at least one year
DENVER, May 02, 2022–(BUSINESS WIRE)–Kelly ETFsan issuer of exchange-traded funds (ETFs) that seeks to provide the opportunity to capture highly liquid, pure-play exposure to the best identified companies in each theme or sector, has reduced the Kelly Residential and Apartment Real Estate ETF (NYSE Arca: RESI) zero net expense ratio thanks to a fee waiver agreement.
RESI ETF was the first pure play ETF focused on the residential and multi-family real estate sector with companies specializing in single-family residential homes, apartment buildings, student accommodation and manufactured homes. RESI seeks to follow the strategic index of the residential real estate and apartment sector.
“We believe the inflationary pricing power of our constituents, coupled with their need and high demand, provides a compelling investment opportunity. Single Family Rentals and Apartments, REITs review their rents annually, which can serve to capture the benefits of investing in publicly traded residential REITs at a compelling zero-expense ratio,” said Kevin Kelly, Founder of Kelly ETFs. “The RESI ETF could benefit as the effects positives from the post-pandemic “housing boom” are trickling down to U.S. rental markets, with rents rising at high rates.”
Kevin Kelly is a recognized ETF expert with nearly two decades of experience in the financial industry. He is also CEO of Kelly Benchmark Indexes, index provider and sponsor of real estate-focused SRVR and INDS ETFs.
“The historically low housing supply comes at a time when household growth – the main driver of housing demand – is strong and accelerating,” noted Krista Kelly. “In a single transaction, RESI provides access to dozens of companies with exposure to all sub-sectors of the multifamily theme seeking to provide a lower-cost alternative to non-traded REITs, mutual funds and private equity funds in a AND F.”
Kelly Intelligence is the advisor and index provider of the RESI ETF. To learn more about Kelly ETFs and its product line, please visit KellyETFs.com.
About Kelly ETFs
Kelly ETFs strives to create disruptive exchange-traded funds (ETFs) that offer investors the opportunity to capture pure, highly liquid exposure to the top companies identified in each emerging theme or sector. Based in Denver, the team is committed to creating investment products with exposure to the world’s most transformative companies and industries. For more information, visit KellyETFs.com.
Investment risk of residential real estate and apartment companies. Real estate is very sensitive to general and local economic conditions and developments. The US real estate market may, in the future, experience and has experienced in the past a decline in value, with some regions experiencing significant losses in property values. Many real estate companies, including REITs, use leverage (and some may be highly leveraged), which increases investment risk and the risk normally associated with debt financing, and could potentially increase volatility and Fund losses.
Limited Operating History Risk. The Fund is a recently incorporated investment company with a limited operating history. Therefore, potential investors have a limited background or track record on which to base their investment decision.
REIT Investment Risk. REITs may have limited financial resources, may trade less frequently and in limited volume, and may be more volatile than other securities. In addition, to the extent that the Fund holds interests in REITs, it is expected that investors in the Fund will incur two levels of asset-based management fees and expenses (directly at the Fund level and indirectly at the REIT level) . The risks of investing in REITs include certain risks associated with direct ownership of real estate and the real estate industry generally.
With respect to the Kelly Residential & Apartment Real Estate ETF, the Adviser has agreed to reduce its unit management fee to 0.00% of the average daily net assets of the Fund until at least April 30, 2023. This Agreement may only be terminated by or with the consent of the Board of Directors of the Fund, on behalf of the Fund, upon sixty (60) days written notice to the Advisor. This Agreement may not be terminated by the Advisor without the consent of the Board of Directors.
Before investing, carefully review a fund’s investment objective, risks, charges and expenses contained in the prospectus available at KellyETFs.com. Read carefully before investing.
Distributor: Foreside Fund Services, LLC.
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Krista Kelly, 949-584-9510