(REIT) ALPS Active REIT - Ratings and Ratios

The ALPS Active REIT ETF (NASDAQ:REIT) is designed to provide exposure to the real estate sector by primarily investing in publicly traded equity securities of U.S. REITs. These REITs are companies that own, finance, or operate income-producing real estate, offering investors a way to engage with real estate without direct property ownership. The fund typically allocates at least 80% of its net assets to such securities, allowing for targeted exposure to the real estate market.

In addition to REITs, the ETF may invest in real estate operating companies, preferred equity, and cash equivalents, enhancing diversification within the real estate sector. As a non-diversified fund, it can concentrate investments in fewer companies, potentially increasing risk but also offering higher return opportunities if those investments perform well. This strategy allows the fund to focus on key players in the real estate market, leveraging their growth prospects.

From a technical standpoint, the ETFs average volume of 13,524 shares indicates moderate trading activity, suggesting it may not be highly liquid. The last price of $27.77 is slightly below the SMA20 of $28.02, indicating short-term bearish momentum. The SMA50 and SMA200 at $27.60 and $27.30, respectively, show a neutral to slightly bearish longer-term trend. The ATR of 0.41 reflects low volatility, suggesting price movements will likely remain stable.

Fundamentally, the ETF has an AUM of $45 million, categorizing it as a smaller fund. This smaller size may allow for more agile investment strategies but could also limit its market impact. The focus on U.S. REITs and related securities positions the fund to capitalize on the domestic real estate markets recovery and growth sectors such as industrial and multifamily housing.

Looking ahead, over the next three months, the ETF is expected to face resistance at the SMA20 level, potentially leading to a slight decline towards the SMA50 support level of $27.60. The low ATR suggests that price fluctuations will remain muted, with the ETF likely trading within a narrow range between $27.30 and $28.02. Investors may consider this period as an opportunity to monitor the funds performance and sector trends before making strategic moves.