## [# Columbia Launches Real Estate ETF Into Bruising Market ](/sections/daily-etf-watch/columbia-launches-real-estate-etf-bruising-market)
# Columbia Launches Real Estate ETF Into Bruising Market
The firm says timing is right, despite investors pulling money from property funds.
[](/contributors/ron-day)
[By Ron Day](/contributors/ron-day)
Apr 26, 2023
Edited by: Lisa Barr
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Columbia Threadneedle Investments launched a real-estate-focused exchange-traded fund, jumping in as the fund’s managers say the market may be poised for an upturn despite higher interest rates that have battered property investing.
The Boston-based firm rolled out the [Columbia Research Enhanced Real Estate ETF (CRED)](https://columbiathreadneedle.rightprospectus.com/columbiathreadneedle/TADF/19761L110/P) Wednesday. Shares of the passively managed, so-called smart-beta fund were priced at $19.79 at the open and fell 10 cents this afternoon. CRED joins Columbia’s 11 existing ETFs, which hold $1.39 billion in assets, according to etf.com [data](https://www.etf.com/topics/columbia).
Rising interest rates and fears of recession have punished real estate investments over the past year, with the Dow Jones Real Estate Index losing 24% over that stretch. Investors have been withdrawing money from real estate ETFs: The largest, the $32.4 billion [**Vanguard Real Estate ETF (VNQ)**](https://etf.com/vnq), lost $4.19 billion over the past year, while the [**iShares U.S. Real Estate ETF (IYR)**](/IYR) has had outflows of $1.43 billion over the same period.
Still, after the fastest series of interest rate hikes in decades, which pushed the fed funds rate to around 5%, the Federal Reserve may be near the end of its current cycle of increases, Columbia Threadneedle’s Head of Strategic Beta Marc Zeitoun told etf.com. Particular sectors of real estate may be poised for growth, he said.
“I don’t know if we are early, but at least we aren’t late,” he said. “The opportunities for real estate in certain areas are going to be strong throughout the next cycle.”
The 63 U.S. real-estate-focused ETFs hold about $68 billion, and had outflows of just over $3 billion this year, according to CFRA data. Total assets have actually dropped from $73.7 billion over two years, while six real estate ETFs were launched, the firm said.
At the same time, not all real estate ETFs are struggling to hold assets. The [**Schwab U.S. REIT ETF (SCHH)**](https://etf.com/schh), which follows a slightly different strategy than VNQ and IYR, has pulled in $278.6 million over the past 52 weeks.
CRED will track the Beta Advantage Lionstone Research Enhanced REIT Index, which includes 70 –to 90 real estate investment trusts focused on residential, healthcare, retail and other parts of the real estate industry.
Zeitoun noted that CRED also appeals to investors seeking dividend income, and the index it follows currently yields 4.06%, which he said beats the S&P 500.
Note: Corrects second paragraph to say fund is passively managed.
*Contact Ron Day at* [*ron.day@etf.com*](mailto:ron.day@etf.com) *or follow him on Twitter at* [*@RonDayETF*](https://twitter.com/RonDayETF)
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[ Ron Day Contributing Editor ](/contributors/ron-day)
Ron Day is Contributing Editor at etf.com. He joined the company in October 2022 and has served as Managing Editor, deputy managing editor and… [View Bio](/contributors/ron-day)
Related Topics [Real Estate](http://www.etf.com/topics/real-estate)
[Smart-Beta](http://www.etf.com/topics/smart-beta)