Funds & ETFs 843

These funds provide exposure to real estate income and genomics.

Principal Real Estate Income Fund (PGZ) | Daily Alert June 11
The Principal Real Estate Income Fund seeks to provide high current income, with capital appreciation as a secondary objective. The fund’s strategy is to invest in higher-yielding debt and commercial real estate-related equity investments.

PGZ recently bumped up its monthly distribution by 3.1% for the May 2021 payment date.

The top five holdings at 03/31/21 were all mortgage-backed securities: BENCHMARK Mortgage Trust (4.72%), Bank 2017-Bnk5 206 (3.75%), COMM 2013-CCRE56 Mortgage Trust (3.25%), Goldman Sachs Mortgage Securities Trust (3.14%), and CFCRE Commercial Mortgage Trust (3.12%).

Distributions on this fund have been taxed historically as ordinary income. Until relatively recently, PGZ’s total return was solid, but 2020’s difficult real estate market conditions weighed on performance, PGZ reported a market price total return of -36.38%, although in the quarter ended 03/21/21 the figure rebounded to 12.85%.

This investment is suitable for medium- to high-risk tax-deferred portfolios. Buy at $18.00 or lower for a 5.53% current yield.
Martin Fridson, CFA, Income Securities Investor,, 800-472-2680, June 2021

*ARK Genomic Revolution ETF (ARKG)
The ARK Genomic Revolution ETF holds 60 stocks poised to take advantage of an even bigger paradigm shift: the intersection of artificial intelligence (AI) and gene editing.

Unfortunately, investing in singular biotechnology companies—like Intellia and Regeneron—carries tremendous risk. They are subject to news events from trial data, both internally and from competitors. Buying a basket—in this case with the ARK Genomic Revolution ETF—diversifies and reduces the risk.

The ARK Genomic Revolution ETF was up 44% in 2019 and 180.6% in 2020. The $9.3 billion fund is currently down 3.4% year-to-date as many biotechnology shares digest 2020’s heady gains. But that makes it look like an even more attractive opportunity. Morningstar gives ARK Genomic its highest five-star rating.

Longer-term investors should consider adding new positions in ARK Genomic at current levels.
Jon Markman, Pivotal Point,, 1-800-291-8545, June 28, 2021


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