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fter the Fed cut rates in September, the rate‑sensitive real‑estate sector has underperformed, with many REIT ETFs posting losses over the past 30 and 90 days. Yet investors should pause before dismissing REITs entirely. Anticipated further cuts suggest a pragmatic approach could pay off, and the ALPS Active REIT ETF (REIT) is worth a closer look.

    REIT, now five years old, is actively managed—a valuable trait when borrowing costs are expected to fall and investors favor REITs with solid balance sheets. The fund already holds several analyst‑favored names, offering a blend of stability and upside.

    Some holdings have tested patience, but they now appear as value plays with credible rebound potential. Americold Realty Trust (COLD) has fallen 51% in the last year. Morningstar analyst Kevin Brown notes that the steep correction stems from weaker occupancy and rent pressures, but anticipates a recovery as speculative supply slows. He sees the current valuation as an attractive long‑term entry point.

    Federal Realty Investment Trust (FRT) is another highlight. Down 13.21% YTD, it benefits from a portfolio with the highest average population density and per capita income among shopping‑center REITs. Brown highlights strong growth prospects and a high dividend yield, suggesting the stock could trade at a premium to peers.

    The ALPS ETF’s active management and diversified holdings make it a compelling option for investors seeking exposure to a sector poised for recovery. For deeper analysis, visit the ETF Building Blocks Content Hub. Stay informed with the newsletter that advisors rely on.