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NEOS Real Estate High Income ETF is rated "Buy", offering nearly 12% yield from a covered call strategy on oversold REITs. Higher short-term rates have pressured IYRI's NAV, but most rate impact appears priced in, creating a potential entry point for long-term income investors. IYRI combines diversified REIT holdings with active call writing, delivering consistent monthly distributions and outperforming the sector and RQI in total return since inception.
Long-duration Treasuries finally offer an enticing yield, but several less obvious risks could undermine both the income and the hedge. Covered call ETFs share more with fixed income than most investors realize, and today's environment is paying them more for that role. The biggest, most popular covered call funds may fail exactly when defense is needed most.
NEOS Investments, an asset management firm comprised of leaders and pioneers in the options-based ETF space, announces September monthly distribution amounts fo
Owning rental property sounds great until a tenant calls at midnight about a burst pipe. There is a different way to access real estate income that skips the headaches entirely, and it involves a strategy most landlords have never considered.
NEOS ETFs offer high-yield, monthly income across diverse asset classes, avoiding large-cap tech exposure and enhancing portfolio diversification. Goldman Sachs' planned $2.25B acquisition of NEOS underscores the platform's rapid growth and innovation in options-based income ETFs. Five NEOS funds—NIHI, MLPI, IYRI, IWMI, and IAUI—provide yields from 9.7% to 14.5%, with strategies tailored to international, MLP, real estate, small cap, and gold assets.
Most equity REITs are uninvestable for high dividend-seeking investors. However, there are some gems to be found. Bargain-hunting high-quality names could be a reasonable approach.
The NEOS Real Estate High Income ETF remains a buy for income-focused investors, offering a 10.8% annualized yield with monthly distributions. IYRI's portfolio is positioned for growth via data centers (DLR, EQIX, PLD) and senior housing (WELL), sectors resilient to higher interest rates. Option writing on the Dow Jones U.S. Real Estate Index enhances income, with higher volatility potentially boosting future distributions.
Covered call ETFs present an opportunity cost, justified mainly for investors prioritizing income or lacking access to alternatives. I have not identified a covered call instrument that serves as an effective buy-and-hold hedge offering meaningful premium benefits. The sweet spot deal is based on a combination of; a) OTM covered call regime and b) underlying assets that are unlikely to surge or plunge.