"The Invesco KBW Premium Yield Equity REIT ETF ( NYSEARCA:KBWY) offers a 9% yield from a $251 million fund focused on higher-yielding real estate investment trusts. The ETF generates income by holding 30+ REITs that pay dividends from rental income across healthcare, industrial, hospitality, and office properties. How KBWY Generates Its 9% Yield KBWY tracks an index of small and mid-cap REITs selected for above-average dividend yields."
"Unlike option-based income strategies, this ETF earns distributions by collecting dividends from underlying REIT holdings and passing them through to shareholders monthly. The fund maintains no leverage and charges a 0.35% expense ratio. The high yield reflects a deliberate strategy of concentrating in smaller REITs that offer higher dividend rates than large-cap peers. This approach creates a fundamental tradeoff for investors: substantial current income in exchange for sacrificed long-term capital appreciation."
The Invesco KBW Premium Yield Equity REIT ETF (KBWY) yields about 9% and manages roughly $251 million by holding more than 30 higher-yielding REITs across healthcare, industrial, hospitality, and office sectors. The fund tracks an index of small- and mid-cap REITs selected for above-average dividends, distributes monthly, uses no leverage, and charges a 0.35% expense ratio. The strategy emphasizes current income via concentration in smaller REITs, producing weaker long-term capital appreciation relative to broader real estate ETFs. Top-three holding concentration of nearly 17% and large positions like IIPR with high yields raise dividend sustainability concerns; one in five tenants falling behind on rent created cash-flow pressure and forced a dividend freeze at $1.90 since mid-2024.
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