New Global X ETF Targets Property Tech

The new fund takes a global approach to tech companies serving the real estate sector.

Thursday, Global X expanded its lineup of thematic exchange-traded funds with a first-of-its-kind fund targeting property technology. According to its prospectus, the Global X PropTech ETF (PTEC) invests in companies that, through their technology, facilitate the construction, marketing, buying, renting, selling and management of residential and commercial properties. 

The fund has an expense ratio of 0.50% and lists on the Nasdaq stock exchange. 

"The process of both finding and maintaining a home is becoming increasingly reliant on cutting-edge technologies and real estate digitization," said Global X Director of Research Pedro Palandrani in a press release.  

"With the launch of PTEC, Global X is leveraging its expertise in thematic investing to offer investors exposure to companies investing in the technology that should meet the needs of this vast, addressable market," he added.  

A  white paper on the Global X website notes that global real estate assets are worth more than $325 trillion, and suggests that the space offers opportunities for companies engaged in disruptive innovation due to digitalization and shifting demographics.  

PTEC tracks a global index that includes companies from both developed and emerging markets that generate at least half of their revenue from property management; the real estate marketplace and platforms; and research and analytics. Companies included must meet size and liquidity minimums and are weighted by modified market capitalization within the index, which rebalances twice a year. 

At its launch, PTEC’s largest holdings were KE Holdings Inc. at 8%; Costar Group Inc. at 7.6%; and Black Knight Inc. at 7.4%.  

The $33.6 million Hoya Capital Housing ETF (HOMZ), which launched in 2019 and takes a similarly broad approach to investing in the real estate market, is perhaps the fund’s closest competitor, as it also takes a nontraditional approach to the real estate sector. However, rather than a global perspective, it homes in on the U.S., and technology is just one facet of its coverage.  

In addition to REITs and other real estate companies, its portfolio includes homebuilders and supplies; home improvement and furnishings retailers; property insurance and mortgage providers; and real estate technology companies, among other categories.  

That said, only a few of HOMZ’s more than 100 holdings are included in PTEC’s roster of roughly 40 securities. 

Contact Heather Bell at [email protected]