Cohen & Steers Enters ETF Space with 3 Funds: A New Opportunity for Investors

Asset manager Cohen & Steers has made a significant move into the exchange-traded fund (ETF) space by launching three new actively managed ETFs. The funds, which focus on real estate, preferred securities, and natural resource equities, offer investors a new opportunity to gain exposure to these specialized asset classes through a more accessible and flexible vehicle. With lower expense ratios compared to their actively managed mutual fund counterparts, these ETFs could attract cost-conscious investors seeking to diversify their portfolios.

Real Estate (CSRE)

The Cohen & Steers Real Estate Active ETF (CSRE) aims to provide total return and portfolio diversification by accessing a broad universe of listed real estate securities. The fund invests in the firm's highest conviction ideas in US REITs while opportunistically investing in international and other real estate-related securities. CSRE is managed by Jason Yablon, Head of Listed Real Estate, and Portfolio Managers Mathew Kirschner and Ji Zhang.

Real estate, particularly through REITs, can offer attractive valuations and growth catalysts across a broad universe of listed real estate securities. The fund's high-conviction, actively managed approach can help exploit inefficiencies and identify undervalued securities. Additionally, real estate has low correlations to traditional asset classes, enhancing absolute and risk-adjusted returns (Source: Cohen & Steers).



Preferred Securities (CSPF)

The Cohen & Steers Preferred and Income Opportunities Active ETF (CSPF) is designed to provide high-quality, tax-efficient income, portfolio diversification, and total return. The fund invests across the preferred securities universe with a focus on investment-grade, institutional preferreds. CSPF is managed by Elaine Zaharis-Nikas, Head of Fixed Income and Preferred Securities, and Portfolio Managers Jerry Dorost and Robert Kastoff.

Preferred securities markets can be inefficient, enabling active managers to identify undervalued securities. The fund's focus on investment-grade, institutional preferreds can provide high-quality, tax-efficient income and capital appreciation. Active duration, interest, or credit risk management can lead to better risk-adjusted returns (Source: Cohen & Steers).

Natural Resource Equities (CSNR)

The Cohen & Steers Natural Resources Active ETF (CSNR) is designed to provide total return and inflation protection amidst an era of resource scarcity. It invests in companies involved in the production, extraction, and processing of natural resources, including energy, agriculture, and metals. CSNR is managed by Tyler Rosenlicht, Head of Natural Resource Equities.

The wide dispersion of returns in natural resource sectors and securities allows for bottom-up security selection, which can deliver strong total returns. Active management can help manage commodity price fluctuations using a risk parity approach, potentially delivering strong returns with lower volatility. Natural resources can also serve as an inflation hedge (Source: Cohen & Steers).



In conclusion, Cohen & Steers' entry into the ETF space with three new funds offers investors an opportunity to gain exposure to real estate, preferred securities, and natural resource equities through a more accessible and flexible vehicle. With lower expense ratios compared to their actively managed mutual fund counterparts, these ETFs could attract cost-conscious investors seeking to diversify their portfolios. However, investors should be aware of the unique opportunities and challenges associated with each asset class and consider the specific investment objectives, risks, and expenses of each fund before making an investment decision.