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TD Ameritrade

From TD: Alexi Panagiotakopoulos On Net Lease REITs.

January 21, 2020: Alexi Panagiotakopoulos On Why Net Lease REITs Remain Attractive

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Bloomberg

Alexi Panagiotakopoulos On Why Net Lease REITs Remain Attractive

January 17, 2020: Bloomberg's Eric Balchunas and Scarlet Fu break down the NETLease Corporate Real Estate ETF (ticker: NETL) with Alexi Panagiotakopoulos, co-founder of Fundamental Income. The fund tracks an index that focuses on the publicly-traded net lease real estate sector, which requires the tenant to pay a portion or all of the taxes, fees and maintenance costs for the property in addition to rent. (Source: Bloomberg_TV)

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ETF Trends

“NETL” ETF Takes Advantage of Income Opportunities in Net Leases

November 15, 2019: Not all real estate investors, new and experienced, want to take on the responsibilities of being a landlord whether it’s residential or commercial property. Fortunately, ETFs give investors exposure to real estate while they may also derive from real estate investment trusts (REITs) through funds like the Fundamental Income Net Lease Real Estate ETF (NYSEArca: NETL).

Diversification does not assure a profit nor protect against loss in a declining market.

Any tax or legal information provided is merely a summary of our understanding and interpretation of some of the current income tax regulations and it is not exhaustive. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Funds nor any of its representatives may give legal or tax advice.

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BusinessWire

Fundamental Income and EveryIncome Partner for National Distribution of Firm’s Total Return Focused Net Lease Corporate Real Estate ETF (NYSE: NETL)

November 13, 2019: Fundamental Income, Sponsor and Index Provider to the NETLease Corporate Real Estate ETF (NYSE: NETL) (the “Fund”), is pleased to announce a strategic partnership with Ei Capital Distributors, LLC, a registered broker-dealer, member of FINRA/SIPC and a subsidiary of EveryIncome. EveryIncome is a fintech education platform focused on financial literacy and institutional quality income products, backed by senior executives with more than 100 years of combined experience in product management and distribution.

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BusinessWire

Fundamental Income Expands Net Lease Strategy Operations with Two New Hires

October 29, 2019: Fundamental Income, the Phoenix-based firm behind the Fundamental Income Net Lease Real Estate Index (NNNLSCTR), which powers the NETLease Corporate Real Estate ETF (NYSE: NETL), is pleased to announce the appointment of two new executives to support its growing operations.

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ETF Trends

Are REITs Still a Viable Alternative Investment Strategy?

August 21, 2019: Real estate investment trusts (REITs) offer investors exposure to real estate without the sweat equity inherent through other means of investment like rental properties or property flipping. However, is investing in REITs still a viable opportunity for investors looking for alternative strategies?
Diversification does not assure a profit nor protect against loss in a declining market. References to other mutual funds or products should not be interpreted as an offer of those securities.

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National Real Estate Investor

A New ETF Comes on the Market, to Potentially
Capitalize on the Positive Outlook for the Net Lease Space

May 24, 2019: NETLease Corporate Real Estate ETF tracks an index that comprises 24 publicly-traded REITs...

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Forbes

Ignore The "3-T's" - Try NetLease Real Estate ETF Instead

March 25, 2019: With all due respect to anyone renting right now, dealing with tenants can be a giant pain in the neck. Unless we’re talking about a slumlord or some other kind of unethical real estate baron – and yes, I fully acknowledge those do exist – most landlords tend to work very hard for their income.

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Press Release

Exchange Traded Concepts Launches The NET
Lease Corporate Real Estate Exchange Traded Fund

March 22, 2019: Exchange Traded Concepts, LLC, (“ETC”) a leader in providing white label Exchange Traded Fund (ETF) solutions, in conjunction with Fundamental Income, today announced that it has launched the NETLease Corporate Real Estate ETF

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ETF.com

1st Net Lease ETF Debuts

March 22, 2019: Today Exchange Traded Concepts and Fundamental Income have launched the first ETF to target net lease real estate investment trusts (REITs). The NETLease Corporate Real Estate ETF (NETL) focuses on REITs that lease their properties for terms of 10 years or more, specifying rent increases ahead of time and generally requiring that the lessee handles usual landlord responsibilities like paying for taxes and repairs.

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Financial Advisor

A Unique Take On REIT ETFs

March 22, 2019: Companies within the NETLease Corporate Real Estate ETF (NETL) own portfolios of properties mainly leased to single corporate tenants under net leases. A net lease is an agreement where the tenant pays both the rent and most—and in some cases, all—of the property expenses including property taxes, insurance and maintenance. That’s known as a triple net lease...
The S&P 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. Non-Investment Grade Bonds are bonds that are rated BB+ and below by Standard & Poor and Ba1 and below by Moody’s. The repayment ability of bond’s with these ratings is considered speculative by the rating agencies.

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Disclosures

The Funds' investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company and may be obtained by clicking here. Please read it carefully before investing. A free, hard-copy of the prospectus can also be requested by calling 1-800-617-0004

NETL - NETLease Corporate Real Estate ETF

Investment Objective The NETLease Corporate Real Estate ETF (the “Fund”) seeks to track the performance, before fees and expenses, of the Fundamental Income Net Lease Real Estate Index (the “Index”).

Fees and Expenses of the Fund

This describes the fees and expenses that you may pay if you buy and hold shares of the Fund (“Shares”). This does not include the brokerage commissions that investors may pay

on their purchases and sales of Shares.

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Management Fees: 0.60%

Distribution and/or Service (12b-1) Fees: None

Other Expenses* 0.00%

Total Annual Fund Operating Expenses 0.60%

*Estimated for the current fiscal year.

Tax Information

Fund distributions are generally taxable as ordinary income, qualified dividend income, or capital gains (or a combination), unless your investment is in an IRA or other tax-advantaged account. Distributions on investments made through tax-deferred arrangements may be taxed later upon withdrawal of assets from those accounts.

The following discussion is a summary of some important U.S. federal income tax considerations generally applicable to investments in the Fund. Your investment in the Fund may have other tax implications. Please consult your tax advisor about the tax consequences of an investment in Shares, including the possible application of foreign, state, and local tax laws. The Fund intends to qualify each year for treatment as a regulated investment company (a “RIC”) under the Code. If it meets certain minimum distribution requirements, a RIC is not subject to tax at the fund level on income and gains from investments that are timely distributed to shareholders. However, the Fund’s failure to qualify as a RIC or to meet minimum distribution requirements would result (if certain relief provisions were not available) in fund-level taxation and, consequently, a reduction in income available for distribution to shareholders. 14 Unless your investment in Shares is made through a tax-exempt entity or tax-advantaged account, such as an IRA plan, you need to be aware of the possible tax consequences when the Fund makes distributions, when you sell your Shares listed on the Exchange; and when you purchase or redeem Creation Units (institutional investors only). The tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) makes significant changes to the U.S. federal income tax rules for taxation of individuals and corporations, generally effective for taxable years beginning after December 31, 2017. Many of the changes applicable to individuals are temporary and would apply only to taxable years beginning after December 31, 2017 and before January 1, 2026. There are only minor changes with respect to the specific rules only applicable to a RIC, such as the Fund. The Tax Act, however, makes numerous other changes to the tax rules that may affect shareholders and the Fund. You are urged to consult with your own tax advisor regarding how the Tax Act affects your investment in the Fund.

VNQ – Vanguard Real Estate ETF

Investment Objective

The Fund seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of a benchmark index that measures the performance of publicly traded equity REITs and other real estate-related investments.

Fees and Expenses

The following describes the fees and expenses you may pay if you buy and hold ETF Shares of the Fund.

Shareholder Fees

(Fees paid directly from your investment)

Transaction Fee on Purchases and Sales: None through Vanguard (Broker fees vary)

Transaction Fee on Reinvested Dividends: None through Vanguard (Broker fees vary)

Transaction Fee on Conversion to ETF Shares: None through Vanguard (Broker fees vary)

Annual Fund Operating Expenses

(Expenses that you pay each year as a percentage of the value of your investment)

Management Fees: 0.11%

12b-1 Distribution Fee: None

Other Expenses: 1 0.01%

Total Annual Fund Operating Expenses 0.12%

Basic Tax Points Investors in taxable accounts should be aware of the following basic federal income tax points:

  • Distributions (other than any return of capital) are taxable to you whether or not you reinvest these amounts in additional ETF Shares.

  • Distributions declared in December—if paid to you by the end of January—are taxable as if received in December.

  • Any dividend distribution or short-term capital gains distribution that you receive is taxable to you as ordinary income. If you are an individual and meet certain holdingperiod requirements with respect to your ETF Shares, you may be eligible for reduced tax rates on “qualified dividend income,” if any, distributed by the Fund. Dividend distributions attributable to the Fund’s REIT investments are generally not eligible for qualified dividend income treatment.

  • Any distribution of net long-term capital gains is taxable to you as long-term capital gains, no matter how long you have owned ETF Shares.

  • Capital gains distributions may vary considerably from year to year as a result of the Fund‘s normal investment activities and cash flows.

  • A sale of ETF Shares is a taxable event. This means that you may have a capital gain to report as income, or a capital loss to report as a deduction, when you complete your tax return.

  • Dividend distributions attributable to the Fund’s REIT investments are generally not eligible for the corporate dividends-received deduction.

  • Your cost basis in the Fund will be decreased by the amount of any return of capital that you receive. This, in turn, will affect the amount of any capital gain or loss that you realize when selling your ETF Shares.

  • Return of capital distributions generally are not taxable to you until your cost basis has been reduced to zero. If your cost basis is at zero, return of capital distributions will be treated as capital gains.

References to other mutual funds or products should not be considered an offer of those securities.

Stocks are generally perceived to have more financial risk than bonds in that bond holders have a claim on firm operations or assets that is senior to that of equity holders. In addition, stock prices are generally more volatile than bond prices. Equities, bonds, and other asset classes have different risk profiles, which should be considered when investing.

Fundamental Income Net Lease Real Estate Index: The Fundamental Income Net Lease Real Estate Index (NETLXT) is a rules based, passive index that, for the first time, defines and tracks the performance of the rapidly expanding net lease real estate sector in a diversified manner.

It is not possible to invest directly in an index.

Exchange Traded Concepts, LLC serves as the investment advisor. Fundamental Income serves as the index provider. The Funds are distributed by Quasar Distributors, LLC which is not affiliated with Fundamental Income, Exchange Traded Concepts, LLC or any of their affiliates.

The Funds' investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company and may be obtained by clicking here. Please read it carefully before investing. A free, hard-copy of the prospectus can also be requested by calling 1-800-617-0004.

Investments involve risk. Principal loss is possible. The fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Index, and consequently the Fund, is expected to concentrate its investments in real estate companies. As a result, the value of the Fund’s shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries.

Investments in real estate companies and REITs involve unique risks, including limited financial resources, they may trade less frequently and in limited volume, and they may be more volatile than other securities. In addition, securities in the real estate sector are subject to certain risks associated with direct ownership of real estate and the risk that the value of their underlying real estate may go down. Companies in the Net Lease Real Estate sector may be affected by unique factors related to leasing properties to single tenants including dependence on the financial performance of its’ tenants and lease terms related to rent escalations based on economic measurements. The fund may invest in foreign securities which involves political, economic and currency risks, differences in accounting methods and greater volatility. Investments in small and mid-sized companies have historically been subject to greater investment risk than large company stocks.

Performance data as of 12/31/19. Returns for periods of less than one year are not annualized. Performance data represents past performance and does not guarantee future results. An investor's return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Performance data current to the most recent month-end can be obtained by calling 800-617-0004.

OUR OFFICE

Fundamental Income
5134 N. Central Avenue Suite 104
Phoenix, AZ 85012

Phone: 602.441.3200

To request other information or make general inquiries about the Fund contact NETLease Corporate Real Estate ETF, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, Wisconsin 53201-0701 or call 1-800-617-0004.

2020 Fundamental Income. All rights reserved. Created by: Exchange Traded Concepts