Kevin Kelly, Founder, Chief Executive Officer at Kelly Intelligence and a panel of industry experts discuss public real estate’s role in investor portfolios.
An allocation to real estate has the potential to enhance total returns, add portfolio diversification, and act as a hedge against inflation. However, not all real estate investments are created equally. The real estate asset class is a vast ecosystem covering a wide range of geographical markets, sub-sectors, themes, and investment structures. Kevin Kelly, Danny Valoy, Vice President of Finance at VICI Properties and Ron Bohlert, Industry Lead – Real Estate at the New York Stock Exchange weigh in on current real estate trends, winning sectors, and allocation ideas for a rising rate environment.
Kelly Intelligence, an investment manager focused around bringing forward-looking, thematic products to market, highlights surging demand in the hotel and leisure sector as well as the residential real estate sector. In January 2022, Kelly ETFs launched the Kelly Hotel & Lodging Sector ETF (HOTL) and the Kelly Residential & Apartment Real Estate ETF (RESI), which seek to provide concentrated exposure to the lodging and residential real estate sectors respectively.
To learn more, register and watch Kelly Intelligence’s webcast: How to Capture Real Estate Growth (HOTL & RESI) in a Rising Rate Environment.
Participants will learn:
- Sector & Company Importance: Choosing to allocate capital to sectors, and companies, with strong demand and inflationary pricing power.
- Returns: REITs have outperformed private real estate by an average of nearly 2 percentage points per year over the past 22 years. Both practitioner and academic studies show the consistent REIT outperformance.
- Inflation: Real estate sectors that stand to benefits from inflation: For investors looking for inflation protection in their portfolio, REITs have historically performed well during periods of moderate inflation in terms of market returns and operating fundamentals.
- Rising Rates: Nareit research shows that REIT returns have generally been positive and have often outperformed the S&P 500 in periods of rising interest rates.
- Portfolio Diversification: REITs had a low correlation with equities.
At Kelly ETFs, Kevin is responsible for ETF product design, structuring, managing retail and institutional investment research, and capital markets. Kevin is the Founder and CEO of Kelly Intelligence, an investment management and intelligence firm that seeks to bring cutting-edge products, with forward-looking exposure. Its growing suite of indexes provide highly liquid, pure-play access to innovative business models, emerging industries, and disruptive technologies. He also serves as the CEO of Kelly Benchmark Indexes the index provider, and sponsor, of the SRVR and INDS ETFs which have over $2 billion.
In September 2014, Nasdaq named Kevin an ‘ETF Insider,’ and he is a recognized leader in ETF design, distribution and growth with his extensive track record of launching multi-billion dollar ETFs. Kevin’s thought leadership on markets, derivatives, e-commerce, and technology can be found weekly in top media outlets.
Previously, Kevin founded Recon Capital where he served as the Chief Investment Officer and Portfolio Manager of affiliated funds. He is most notably known as the creator of the Nasdaq 100 Covered Call ETF (QYLD), one of the largest options ETFs. He created the BXNT index (CBOE NASDAQ 100 BuyWrite V2 Index) it currently tracks, alongside CBOE and Nasdaq, by changing the option component for real world application. Kevin led the initial public offering of the NYSE: EGIF closed-end fund after creating a custom options strategy for the portfolio. He previously worked for Goldman Sachs in the investment management division and Deutsche Bank’s debt capital markets group in London.