Cohen & Steers: Navigating Real Asset Resilience in a Diversified ETF Landscape

In a market environment marked by divergent real estate performance and shifting investor priorities, Cohen & Steers has emerged as a strategic innovator in the real asset space. As of Q2 2025, the firm's assets under management (AUM) have grown to $88.9 billion, driven by a 1.1% sequential revenue increase and $965 million in market appreciation. While institutional outflows remain a headwind, the firm's pivot toward active ETFs—particularly in real estate and infrastructure—has attracted $54 million in net inflows, signaling a calculated bet on long-term AUM growth and diversification.

Strategic ETF Launches: A New Era of Active Exposure

Cohen & Steers' recent launch of three active ETFs—focused on real estate, preferred securities, and natural resource equities—reflects its alignment with investor demand for income and sector-specific resilience. These products are not mere extensions of existing portfolios but tailored vehicles designed to capitalize on underpenetrated markets. For instance, the firm's exposure to industrial logistics and renewable energy aligns with macro trends like the e-commerce boom and the global energy transition.

Consider the logistics sector: Such facilities, often located in high-demand corridors, benefit from long-term tenant stability and inflation-linked leases. Meanwhile, renewable energy projects provide steady cash flows with lower volatility compared to traditional real estate. This dual focus allows Cohen & Steers to diversify risk while tapping into sectors with structural growth drivers.

AUM Trends and Market Positioning

The firm's AUM trajectory underscores its ability to adapt to market cycles. reveals a resilient trajectory despite broader devaluations in trophy real estate markets like Manhattan. This resilience is partly due to its active ETFs, which have attracted $54 million in net inflows, and its offshore CCAVs, which saw record inflows of $121 million in Q2.

However, Cohen & Steers' success is not without challenges. Rising capitalization rates and elevated insurance costs are eroding valuations in certain submarkets. For example, the Silicon Valley Tech Center's 65% drop in value since 2021 highlights the risks of overleveraged, speculative assets. In contrast, Cohen & Steers' “flight to quality” strategy—prioritizing high-occupancy, flexible properties—positions it to outperform in a U-shaped recovery scenario.

The Infrastructure Edge: Diversification in a Low-Yield World

Infrastructure ETFs, a cornerstone of Cohen & Steers' expansion, offer unique advantages. Unlike traditional real estate, infrastructure projects often generate predictable cash flows through regulated utilities, toll roads, or renewable energy assets. This stability is critical in a low-yield environment, where investors are increasingly seeking income-generating alternatives.

shows that these products have outperformed passive benchmarks in volatility-adjusted returns. For example, its renewable energy ETF has delivered a 14% annualized return since launch, driven by tax credits and long-term power purchase agreements. Such metrics underscore the firm's ability to engineer risk-adjusted returns in a fragmented market.

Investment Implications and Risk Mitigation

For long-term investors, Cohen & Steers' dividend reliability—supported by its 40.5% compensation ratio and 25.3% effective tax rate—offers a compelling value proposition. The firm's one unfunded pipeline of $776 million, with $275 million in net inflows, further suggests a disciplined capital management approach. However, short-term traders should monitor macroeconomic signals like rate cuts and real estate stabilization before committing capital.

Cohen & Steers' projected G&A expenses growth of 7-8% in 2025—driven by talent acquisition and foreign office upgrades—signals a temporary cost burden. Yet, post-2025, these expenses are expected to moderate to mid-single-digit percentages, aligning with the firm's focus on operational efficiency.

Conclusion: A Strategic Balancing Act

Cohen & Steers' strategic ETF expansion exemplifies a forward-looking approach to real asset investing. By leveraging active management in high-demand sectors like logistics and renewables, the firm is not only diversifying its AUM base but also mitigating risks inherent in cyclical markets. While challenges like capitalization rate hikes persist, its emphasis on quality assets and disciplined capital allocation positions it to thrive in a U-shaped recovery.

For investors, the key takeaway is clear: in an era of market fragmentation, Cohen & Steers' active ETFs offer a vehicle to access resilient real assets with a focus on long-term value creation. As the firm continues to refine its infrastructure and real estate strategies, it may well become a linchpin for portfolios seeking both income and diversification.