RIET Hoya Capital High Dividend Yield ETF.png
HOMZ_Logo_Just Ticker.png
  • Alex Pettee, CFA

Give Me Yield Or Give Me Death

  • "Give me yield or give me death." In a world of perpetually low interest rates, investors have piled into yield-oriented equity sectors to quench their vivacious appetite for income.

  • High-yield real estate ETFs are especially popular, which offer juicy dividend yields of 5-9% compared to their broad-based real estate ETF counterparts yielding below 4%.

  • On Wall Street, there’s certainly no free lunch. High-yield REITs typically include a collection of misfits, outcasts, small-caps, and recent underachievers. Understanding the source of excess yield is essential.

  • Diversification is especially critical when "yield-chasing" to minimize elevated idiosyncratic risks, making real estate ETFs an efficient and low-cost option that offers instant diversification.

  • We profile six of the most popular high-yield REIT ETFs. We look at each ETF's property sector exposure and the source of the excess yield.

To continue reading, click here to visit Seeking Alpha!

high yield REIT investing hoya capital logo.png

Hoya Capital Research & Index Innovations is an affiliated index provider and research firm that builds custom indexes tracking U.S. commercial and residential real estate sectors, including indexes tracked by exchange-traded funds (ETFs). 

Hoya Capital Research & Index Innovations