SUMMIT, NJ--(Marketwired - January 12, 2017) - Tierra XP Latin America Real Estate ETF (NYSE ARCA: LARE) declared its final monthly distribution of $2.917 per share for investors in the Tierra XP Latin America Real Estate ETF for shareholders of record as of 12/28/16 and payable on 1/3/17. For the 2016 calendar period, shareholders received $3.94 per share, of which approximately 80% was qualified dividends. Calendar year 2016 distributions represented a dividend yield of 12.99% based on closing market price as of 12/30/16. (SEC Yield was 4.60% as of 12/30/16, view performance at http://www.tierrafunds.com/fund/)
"When we launched the LARE ETF in late 2015, a primary goal was to offer access to high yielding local REITs1 in Brazil and Mexico but also the ability to capture attractive growth potential through the efficiency of the ETF wrapper," said James Anderson, Managing Partner of Tierra Partners. "The LARE ETF's realized distributions in 2016 far exceed most real estate focused funds which are generally projecting little to no growth or are returning capital to investors. Latin America REITs have been growing dividends as a result of attractive top line growth and improving macro fundamentals."
The LARE ETF offers access to all widely-held Mexico and Brazil REITs and all major real estate operating companies (REOCs) in Mexico, Brazil, Argentina and Chile. LARE ETF holds sixty-one components focused on office, industrial, commercial retail, and hospitality real estate, with approximately 80% of these components being unavailable in competing products2.
For the 2016 calendar period, the LARE Index total return (LARETR) was up 26.4%, was 44% correlated to the S&P500 and had 22.2% realized volatility. In contrast, the MSCI Emerging Markets Index total return was up 13.5%, was 80% correlated to the S&P500 and had 21.9% realized volatility.
"What this data suggests is an investor can have Latin America exposure without the high volatility associated with the region; LatAm real estate offers a low volatility, non-correlated, liquid exposure not available in competing strategies," Mr. Anderson continued. "Furthermore, the LARE Index tracks a dividend yield that is more than three times greater than most EM strategies.3 Real estate may be the ideal sector to gain exposure to the improving macro-economic conditions in Latin America and a compelling complement to a broad EM or developed real estate allocation."
About Tierra Funds
Tierra Funds (www.tierrafunds.com) is an ETF sponsor focused in the Americas region. Our principals have extensive experience in real estate alternatives, portfolio management and custom indexing.
We believe the Americas block is strategically positioned to drive global growth well into the 21st century. Our principals have worked extensively in both the public and private markets on behalf of institutional investors who seek to optimize their risk-adjusted exposure to the region.
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About ETF Managers Group
ETF Managers Group, LLC is the Investment Adviser to the Tierra XP Latin America Real Estate ETF (LARE). ETF Managers Group offers a full range of ETF product services to the asset management community including commodity pool ETPs as well as both active and passive ETF funds. The services provided include product operations, regulatory, financial and compliance management. ETF Managers Group offers active marketing and dedicated wholesale services for all ETF product types.
Carefully consider the Fund's investment objectives, risk factors, charges, and expenses before investing. This material must be accompanied or preceded by a prospectus. Please read the prospectus carefully before investing.
Beta is a measure of the volatility, or risk, of a security or a portfolio in comparison to the market as a whole. It represents the tendency of a security's returns to respond to swings in the market, centered on a value of 1. The S&P 500 Index is the Standard & Poor's composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices. Correlation is astatistic that measures the degree to which two securities move in relation to each other.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. The Fund will be sensitive to changes in, and its performance will depend to a greater extent on, the overall condition of the global and local economies. Funds that invest in smaller companies may experience greater volatility. Diversification does not guarantee a profit, nor does it protect against a loss in a declining market.
The Tierra XP Latin America Real Estate ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Solactive Latin America Real Estate Index.
The Solactive Latin America Real Estate Index screens for all listed equities with primary listings in the Latin America region and which derive substantially most of their income from real estate and real estate services. The MSCI Emerging Markets Index captures large and mid cap representation across 23 Emerging Markets (EM) countries.
The Fund is distributed by ALPS Distributors, Inc., which is not affiliated with ETF Managers Group, LLC or any of its affiliates.
SDJ000352 Expires 12/31/2017
1 Real Estate Investment Trust.
2 Tierra Funds.
3 Tierra Funds.