NEOS Real Estate High Income ETF

IYRI

Market cap $304M

The NEOS Real Estate High Income ETF (CBOE:IYRI) pays a monthly distribution that currently annualizes to roughly 10.9%, an eye-catching figure in a market where the 10-year Treasury yields about 4.5%.

IYRI offers an 11% yield and tax-efficient distributions, appealing to income-focused investors seeking diversification and stable income. The covered call strategy caps upside potential, causing IYRI to lag in strong REIT rallies but ensures steady distributions even in flat markets. IYRI may underperform broader markets and REIT peers if rates rise or REITs rally, but excels in delivering reliable, tax-advantaged income.

Realty Income and Janus Henderson AAA CLO ETF provide attractive, AI-insulated income streams with strong risk mitigation. O offers a 5.1% yield, an investment-grade balance sheet, an 8.7-year average lease maturity, and defensive monthly income with embedded growth. JAAA delivers a 5.4% yield from AAA CLO tranches, offering de-risked, technology-light exposure and a superior yield to T-bills.

The Neos Real Estate High Income ETF (IYRI) remains a Buy, with improved confidence in yield sustainability and portfolio positioning since last August. IYRI's option and REIT yield engines are well-suited for a challenging macro backdrop, prioritizing income over capital appreciation in the near term. Portfolio tilts - especially increased WELL and reduced AMT/CCI - enhance defensiveness, with healthcare and senior housing as key ballast.

The current market environment, marked by volatility and uncertainty, is almost ideal for covered call ETF strategies. However, traditional (most) covered call ETFs are heavily concentrated in S&P 500 and Nasdaq-100 names, which are considered vulnerable to correction. I favor covered call ETFs with low beta and low correlation to high-priced assets, targeting blue-chip value for extra defense and durable yields.

Covered call ETFs offer abnormal income and access to asset classes lacking yield, though downside protection is rarely effective in practice. Alpha generation is not the goal; these funds suit investors prioritizing high income or absolute return over chasing alpha. However, not all covered call ETFs can do this job.

WESTPORT, Conn.--(BUSINESS WIRE)--NEOS Investments, an asset management firm comprised of leaders and pioneers in the options-based ETF space, announces May monthly distribution amounts for their suite of ETFs that pursue monthly income and tax efficiency across core portfolio exposures. May 2026 Distribution Information, based on each ETFs Ex-Dividend Date:   Distribution Rate* Amount / Share (%) Amount / Share ($) Ex-Dividend Date 30-Day SEC Yield** Boosted Bitcoin High Income ETF (XBCI) 38.8.

NEOS Real Estate High Income ETF offers an 11% yield with monthly, tax-efficient distributions, appealing to income-focused investors seeking REIT exposure. IYRI employs an index-based option writing strategy, enabling uncapped upside but introducing NAV and payout volatility tied to sector momentum and market conditions. While IYRI underperforms traditional REIT ETFs like VNQ and FREL in total returns, it outpaces high-yield REIT peers due to its option strategy and superior position selection.

Inflation remains persistently above target, eroding real returns and challenging yield-seeking investors to find income exceeding CPI. Since 2021, inflation has introduced a cumulative drag to our portfolios at around 27%. The only way to secure real (in excess of inflation) dividend income is to go big on yields.

Durable retirement income investing comes with limits. One of the consequences is that specific asset classes are left unexplored. This is where covered call ETFs can come into play.