AXS Unveils Mortgage REIT Focused ETF

Alternative asset manager AXS Investments added a new exchange traded fund (ETF), the AXS Real Estate Income ETF (RINC), designed to provide investors with exposure to liquid real estate investments and high yields.

AXS Investments, which manages $793 million across 12 other ETFs, designed the fund to provide a corporate junk bonds alternative. The ETF focuses on publicly traded mortgage REITs (mREITs) that own and/or originate real estate debt.

The fund is linked to the Gapstow Real Estate Income Index (GREI), which was created by Gapstow Capital Partners, a management consulting firm based in New York City that specializes in alternative credit investments.

RINC is unique in that it is equally weighted by sector, including 50% commercial real estate lending, 25% non-agency residential real estate debt, and 25% agency residential real estate debt.

The ETF consists of US-listed mREITs with market capitalizations above $500 million and average daily trading volumes over $750,000. The index rebalances quarterly to maintain diversification.

“With RINC, investors and advisors now have the ability to diversify the high-yield sleeve of their portfolios and complement a broader real estate or alternatives portfolio with unique exposure to the credit side of real estate and an alternative to high yield corporates,” said Greg Bassuk, CEO of AXS Investments.

The AXS Real Estate Income ETF is listed on NYSE Arca with an expense ratio of 0.89%.

RINC expands AXS Investments’ suite of alternative income offerings that also includes funds providing exposure to CLOs, tactical income solutions and sustainable income.