How to Invest in the DEA, Through an ETF

Investing in the DEA through an ETF

The value proposition of Easterly Government Properties Inc. can be placed into three categories: Real Estate, Recurring Income, and Low Volatility.  

Real Estate Perspective

Easterly Government Properties Inc.’s focus on government properties has made it a primary holding within many REIT ETFs, such as Vanguard’s Real Estate ETF (VNQ). Regarded as the King of REIT ETFs, VNQ provides investors with singular access to the world’s largest REITs, while also providing exposure to various industries, such as telecommunications, manufacturing, public storage, and commercial real estate. For investors that hold this ETF, they are gaining comprehensive exposure to the U.S.’s robust real estate sector.   

Recurring Income

Because Easterly Government Properties Inc. pays a consistent dividend, it has established a reputation for being a source of recurring income. DEA is a holding within Global X SuperDividend U.S. ETF (DIV), which focuses on companies that have paid consistent dividends over a (rolling) two-year period and are perceived to have lower volatility, as measured by their beta. Through all economic cycles, investors want to know they can receive income from their investments, this ETF helps fulfill that objective.   

Low Volatility 

There are few things surer in this world than the continuity of the US Government. Real estate as an asset class is fairly stable on its own but having the US Government as a tenant minimizes a lot of risk for the owner-operator of the asset. DEA is a holding within the Invesco S&P Low Volatility ETF (XSLV), which focuses on companies within the S&P Small Cap 600. The fund selects 120 of the least volatile securities, it then weighs them inversely by volatility. Thus, the lowest volatility stocks have the highest weighting and vice versa. Because DEA caters to a singular client, who also happens to be a dominant economic power, there is very little uncertainty from year to year. 

For investors seeking to gain exposure to the DEA, the stated ETFs are worthy of consideration. What’s more, investors also gain the opportunity to benefit from a unique investment strategy or asset class exposure that could complement their current portfolio. 

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decisions.