Columbia Threadneedle Investments launched the Columbia Research Enhanced Real Estate ETF. The fund tracks a proprietary index designed to outperform the FTSE Nareit All Equity REITs Index by selecting securities based on research and modifying market cap weighting to emphasize income and geographic opportunity.

The ETF tracks the Beta Advantage Lionstone Research Enhanced REIT Index, which consists of 70-90 REITs, with a focus on eight sectors, including Specialized, Industrial, Diversified, Hotel & Resort, Residential, Retail, Office and Health Care REITs, with varying weights.

The weighting approach is in response to a recent survey by Columbia Threadneedle that found income diversification and generation were among the top reasons why financial advisors allocated to real estate. Furthermore, 90% of financial advisors consider geographic exposure when investing in REIT strategies, the study found.

It is the 12th ETF launched by Columbia Threadneedle, which has more than $608 billion in assets under management.

Rising rates and recession fears have weighed on real estate investments over the past year, with the Dow Jones Real Estate Index shedding 24% over that period. Investors have been withdrawing money from real estate ETFs: The largest, the $32.4 billion Vanguard Real Estate ETF, lost $4.19 billion over the past year, while the iShares US Real Estate ETF has had outflows of $1.43 billion over the same period.

Yet, after the fastest series of rate hikes in decades, the Federal Reserve may be near the end of its current tightening cycle, which is presenting opportunities for the sector.

The ETF, which has an expense ratio of 0.33%, is managed by Christopher Lo and Henry Hom.