Ji Zhang, CFA, Global Real Estate Portfolio Manager for Cohen & Steers, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss how broadening the investment universe by geography and sector creates greater opportunities for active managers to generate alpha.
The Cohen & Steers Real Estate Active ETF (CSRE) was launched in February 2025 as an actively managed ETF investing in real estate securities. The ETF leverages Cohen & Steers’ global real estate team, which is one of the largest in the industry.
The real estate industry can be categorized into over 20 property sectors, with the best sector outperforming the worst sector by over 7500 basis points in the first ten months of 2025. This return dispersion creates opportunities for active managers to add value.
The ETF portfolio holds over 40 names, with over half of its weight allocated to real estate used for health care, cell towers, data centers, and residences. Zhang notes that the team has been adding exposure to office properties on the US West Coast, with conviction that the sector is at an inflection point.
Due to a lead-lag relationship in returns, portfolio volatility can be smoothed over time by allocating to both private and public real estate. Private real estate tends to focus on traditional core property types, while listed real estate invests in broader opportunities that may have greater growth potential, such as senior housing and data centers.
WEBCAST – Repriced and Ready: Private Real Estate’s Next Move
For investors seeking to position themselves for the next phase of the real estate cycle, the current environment offers a potentially compelling entry point as private real estate bottoms. With valuations reset, transaction volumes stabilizing, and positive momentum returning to the market, private real estate appears poised to deliver improved returns in the years ahead, particularly for those who can deploy fresh capital at today’s valuations.
Accepted for 1 CFP® / IWI / CFA CE Credit