Hoya Capital High Dividend Yield ETF

RIET

Market cap $103M

Hoya Capital High Dividend Yield ETF offers diversified real estate exposure with a focus on high-yielding REITs and preferred securities. RIET delivers a steady monthly distribution, currently yielding 11.42%, though coverage is stretched with an SEC yield of 9.76%. The fund's level payout policy may require adjustment to better align distributions with underlying cash flows, but yield should remain elevated and attractive.

This 7-fund, all-funds portfolio targets a ~8% income yield and market-matching growth with passive, diversified exposure across equities, bonds, energy, utilities, and real estate. The portfolio has delivered a trailing 12-month yield on cost of 9.42% and an annualized return (CAGR) of 14.67%, outperforming the S&P500 with 20% lower volatility. This strategy is designed for retirees seeking high, consistent income and reduced volatility without sacrificing long-term growth potential.

REIT ETFs, like SCHH, are in focus after the 30-year mortgage rate dipped to 5.98%, boosting real estate valuations and dividend appeal.

The Hoya Capital High Dividend Yield ETF tries to maintain stability in income flows by participating in the real estate market and less traded segments. It has effectively managed to maintain stable distributions, ~10.1%, weighed down by the deterioration of capital gains. Its more “exotic” exposure has been costly for holders during the post-2022 rate hikes, more so than for holders of classic REIT ETFs such as VNQ.

VNQ Vs. RIET: Why Income Beats Growth For REIT Investors In 2026

REITs have underperformed since 2022 rate hikes, but Hoya Capital's David Auerbach says fundamentals are strong, especially among small and mid-cap names offering attractive yields. Interest rate sensitivity in REITs is often overstated.

RIET offers a diversified, high-yield real estate ETF with steady monthly distributions, appealing to income-focused investors. Performance has stabilized after past rate-driven declines; investors entering since 2023 have seen respectable total returns as rates stabilized. The fund's payout slightly exceeds its index yield, raising some caution about potential overdistribution, but yields should remain attractive even if trimmed.

U.S. equity markets notched another series of record highs this week, surging into the weekend after surprisingly dovish commentary from Federal Reserve Chair Powell, who hinted at imminent rate cuts. Powell used his final Jackson Hole speech as Fed Chair to deliver a clear policy pivot, an unexpected reversal after months of insistence that tariff-related inflation warranted a hawkish framework. Markets were equally relieved by the policy-focused nature of Powell's speech amid speculation that the address may be used instead as a potential defiant sermon on central bank independence.

U.S. equity markets fell sharply this week, while benchmark interest rates retreated to three-month lows, after revised employment data showed that job growth was far weaker than initially reported. The BLS payrolls report showed softer-than-expected hiring in July and the steepest two-month downward revisions to jobs growth since 2020, raising concern that the Fed may be "behind the curve." The downward revisions came days after Fed Chair Powell used it as the primary evidence for "solid" labor markets, which justified the FOMC's decision to keep rates in "restrictive" territory.

REITs were under pressure from a higher rate environment, but we've seen some recovery from the lows. I believe that there is still some further recovery that can take place, as REITs remain beaten down. Today, we are highlighting two ETFs that provide exposure to this area of the market and also provide a relatively higher distribution rate.