REITs were a popular choice for income seeking investors in 2019 with healthy inflows and strong performance for broad REIT ETFs like VNQ and SCHH. Net Lease REITs account for roughly 8-10% of broad REIT ETFs; investors that wanted greater exposure to the relative safety of this REIT sub-sector were required to buy individual names. That all changed with the launch of NETL - the first ETF to offer targeted exposure to an index comprised exclusively of the 23 U.S.-listed net lease REITs in March 2019. NETL's founders, Chris Burbach and Alexi Panagiotakopoulos, join the latest Let's Talk ETFs to explain why net lease REITs are at the sweet spot of a relatively safe and balanced total strategy.
Show Notes

2:45 - Chris and Alexi's backstories - Why a net lease REIT-focused ETF? 

6:30 - What is a "triple net" lease?

11:45 - Why do REITs generally hold just one type of property?

12:30 - How many publicly traded net lease REITs are there in the US?

18:15 - Are triple net leases a growing phenomenon?

19:30 - Is this a U.S.-specific model, or are there international equivalents?

22:00 - Why is the current 8-10% exposure to triple net lease REITs offered by broad ETFs like Vanguard Real Estate ETF (VNQ), iShares U.S. Real Estate ETF (IYR) and Schwab U.S. REIT ETF (SCHH) not nearly enough? 

30:45 - Breaking down the index: Tiered cap-weighting strategy, single company limitations, geographical diversification 

35:15 - NETL's top holding... STOR breakdown.

42:45 - Is this a true total return strategy: Dividend income vs. capital appreciation


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