ILPT - Income In The Yield Desert

• One of the lasting lessons from a tumultuous 2020 was to "expect the unexpected." Several property sectors exhibited unexpected resilience that seemingly defied the macroeconomic headwinds.
• No sector defied the headwinds more than the Net Lease REIT sector. Of the 52 equity REITs that paid higher total dividends in 2020, nine were net lease REITs.
• "Net lease" refers to the triple-net lease structure, whereby tenants pay all expenses related to property management. This lease-type proved to be particularly durable throughout the turmoil.
• One ETF focuses on this particular lease type - the NETLease Corporate Real Estate ETF (NETL) - which was the 5th best-performing fund in the Morningstar Real Estate ETF Category in 2020.
• In this ETF Spotlight, we take a look under the hood of NETL and the factors driving the performance of the net lease REIT sector, which offers an attractive alternative to traditional fixed-income investments.

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