NEOS Real Estate High Income ETF

IYRI

Market cap $200M

Neos Real Estate High Income ETF offers a compelling double-digit yield and monthly, tax-advantaged distributions, making it attractive for income-focused investors. IYRI's covered call strategy generates income but caps upside potential, differentiating it from individual REITs with greater long-term appreciation prospects. The ETF's portfolio includes both high-quality equity REITs and riskier mREITs, increasing exposure to commercial real estate headwinds.

Broadly speaking, real estate investment trusts (REITs) and the related ETFs didn't do much worth writing home about this year, but there's optimism these income-generating assets are in store for better showings in 2026.

Covered call ETFs promise high income and outperformance in sideways or declining markets, but face opportunity cost in bull markets. Despite strong AuM growth and new launches like NEOS MLP & Energy Infrastructure High Income ETF (MLPI), Covered Call ETFs are structurally suboptimal with inherent negative alpha. Covered call ETFs consistently underperform not only in rising markets due to capped upside, but also during market declines.

This week's Undercovered Dozen highlights 12 lesser-followed stocks and funds, each with distinct catalysts or value opportunities. This week's edition covers articles published between Dec. 12 and Dec. 18, offering fresh investment ideas. The series aims to inspire discussion and help investors discover overlooked opportunities in the market.

In an easing monetary policy environment, yields start to fall in line with rate cuts. Bond investors might be seeking to supplant the income they've grown accustomed to.

IYRI is a REIT-focused covered call ETF. It is one of the few covered call ETFs that looks solid from both sides - keeping the opportunity cost limited and providing downside protection from the AI bubble. In the article I detail why I have become even more bullish on IYRI than earlier in September this year.

I rate Neos Real Estate High Income ETF (IYRI) a buy for its high 10.7% yield and tax-efficient distributions. IYRI's option-writing strategy enables strong income and capital preservation, outperforming traditional REIT ETFs and high-yield peers since inception.

Yield for traditional income sources have started to compress. For income-oriented investors, who seek to build a reliable passive income machine it causes a real headache. To hit a certain target income figure, investors have to assume either higher risks, extend time horizon or save/invest more capital.

WESTPORT, Conn.--(BUSINESS WIRE)--NEOS Investments, an asset management firm comprised of leaders and pioneers in the options-based ETF space, announces November monthly distribution amounts for their suite of ETFs that pursue monthly income and tax efficiency across core portfolio exposures.

Neos Real Estate High Income ETF is rated a Buy for income-focused investors seeking high monthly distributions. IYRI offers an 11.2% forward yield, low 0.68% expense ratio, with active professional options management. The ETF outperformed sector benchmarks since inception, with most distributions classified as return of capital for potential tax efficiency.