Hoya Capital | Income Builder | REITs & ETFs

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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.

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