NETL - AI Analysis

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NETLease Corporate Real Estate ETF (NETL)

Rating:73Outperform

Price Target:

$28.00

The NETLease Corporate Real Estate ETF (NETL) has a solid overall rating, reflecting its strong portfolio of real estate investment trusts (REITs). Holdings like VICI Properties and Agree Realty stand out for their robust financial performance, strategic investments, and attractive dividend yields, which significantly boost the fund's appeal. However, some holdings, such as NETSTREIT and Broadstone Net Lease, face challenges like valuation concerns and overbought conditions, which may slightly temper the ETF's overall rating. Investors should also note the fund's concentration in the REIT sector, which could pose risks during periods of real estate market volatility.

Positive Factors

Strong Top Holdings

Several key holdings, such as NETSTREIT and W. P. Carey Inc., have delivered strong year-to-date performance, supporting the ETF’s overall returns.

Consistent Sector Focus

The ETF’s concentration in the real estate sector provides targeted exposure to a stable and income-generating industry.

Steady Performance

The ETF has shown positive returns across multiple timeframes, including year-to-date, three months, and one month.

Negative Factors

High Sector Concentration

With nearly all assets in the real estate sector, the ETF is vulnerable to downturns in this specific industry.

Limited Geographic Diversification

The ETF is heavily focused on U.S.-based companies, offering little exposure to international markets.

Moderate Expense Ratio

The ETF’s expense ratio is higher than some low-cost alternatives, which could reduce net returns over time.

NETL vs. SPDR S&P 500 ETF (SPY)

AUM40.86M

RegionNorth America

Expense Ratio0.60%

Beta0.41

IssuerNETL

Inception DateMar 21, 2019

Dividend Yield5.01%

Asset ClassEquity

Index TrackedColterpoint Net Lease Real Estate Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume5,913

30 Day Avg. Volume5,578

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

27.78

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering24

NETL Summary

The NETLease Corporate Real Estate ETF (NETL) is a fund that focuses on companies owning or operating net lease properties, where tenants cover most expenses like taxes and maintenance. This ETF tracks the Colterpoint Net Lease Real Estate Index and includes well-known companies like Realty Income and W. P. Carey Inc. Investors might consider NETL for steady income and diversification within the real estate sector. However, since it is heavily focused on real estate, its performance can be impacted by changes in the property market.

How much will it cost me?The NETLease Corporate Real Estate ETF (NETL) has an expense ratio of 0.60%, which means you’ll pay $6 per year for every $1,000 you invest. This is slightly higher than the average for ETFs because it is a specialized fund that focuses on a niche area of real estate, requiring more active management. However, this cost may be worth it for investors seeking targeted exposure to net lease real estate.

What would affect this ETF?The NETLease Corporate Real Estate ETF (NETL) could benefit from stable demand for net lease properties, which are known for predictable income streams and resilience during economic uncertainty. However, rising interest rates or a slowdown in the U.S. real estate market could negatively impact property values and investor sentiment, especially given its heavy exposure to U.S.-based holdings like Realty Income and W. P. Carey Inc. Regulatory changes affecting commercial real estate or tenant industries could also pose risks.

NETL Top 10 Holdings

The NETLease Corporate Real Estate ETF (NETL) is firmly rooted in the real estate sector, with a clear focus on companies benefiting from stable, long-term net lease agreements. Realty Income and W. P. Carey are steady performers, bolstered by strong cash flows and strategic investments, while Agree Realty adds a touch of resilience with its robust revenue growth. However, VICI Properties and EPR Properties are lagging, weighed down by weak technical momentum and challenges in specific markets. With nearly all holdings U.S.-based, the fund offers concentrated exposure to a niche but reliable corner of the real estate market.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ADC	Agree Realty	8.30%	$3.44M	$8.40B	0.22%	79 Outperform
O	Realty Income	8.28%	$3.43M	$53.36B	-1.99%	77 Outperform
WPC	W. P. Carey Inc.	8.03%	$3.33M	$14.51B	17.65%	69 Neutral
NNN	NNN REIT	7.92%	$3.28M	$7.76B	-9.88%	75 Outperform
VICI	VICI Properties	7.39%	$3.06M	$31.67B	-5.98%	81 Outperform
NTST	NETSTREIT	4.30%	$1.78M	$1.58B	19.99%	70 Outperform
LXP	LXP Industrial Trust	4.22%	$1.75M	$2.82B	1.49%	74 Outperform
STAG	Stag Industrial	4.21%	$1.75M	$7.03B	0.85%	73 Outperform
BNL	Broadstone Net Lease	4.07%	$1.69M	$3.39B	-0.99%	71 Outperform
GTY	Getty Realty	4.02%	$1.66M	$1.60B	-12.46%	79 Outperform

NETL Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

24.63

Negative

100DMA

24.34

Negative

200DMA

23.91

Positive

Market Momentum

MACD

-0.02

Positive

RSI

37.90

Neutral

STOCH

33.25

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For NETL, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 24.52, equal to the 50-day MA of 24.63, and equal to the 200-day MA of 23.91, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 37.90 is Neutral, neither overbought nor oversold. The STOCH value of 33.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NETL.

NETL Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
NETL	―	―	$40.86M	0.60%	73 Outperform
RIET	―	―	$95.65M	0.50%	55 Neutral
PSR	―	―	$52.62M	0.55%	70 Neutral
REIT	―	―	$45.83M	0.68%	71 Outperform
PPTY	―	―	$32.40M	0.53%	70 Outperform
JRE	―	―	$26.42M	0.65%	72 Outperform

Performance Comparison

NETL

NETLease Corporate Real Estate ETF

23.96

-0.88

-3.54%

RIET

Hoya Capital High Dividend Yield ETF

―

PSR

Invesco Active U.S. Real Estate Fund

―

REIT

ALPS Active REIT ETF

―

PPTY

US Diversified Real Estate ETF

―

JRE

Janus Henderson U.S. Real Estate ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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