- RIET is a new ETF that will appeal to high-yield REIT investors looking to benefit from Hoya Capital's well-documented expertise here on Seeking Alpha.
- The fund combines Dividend Champions, REITs from all market-cap segments, and Preferred Stock for a net expense ratio of 0.25%.
- Unfortunately, the fund starts behind the 8-ball due to its high allocation to small- and mid-cap REITs, which traditionally are significant underperformers.
- Hoya Capital appears to have made the most of a difficult situation by selecting the best of these underperformers, but it's not enough.
- RIET represents a clear trade-off between high yield and total returns, and I don't think it will experience the same type of success as HOMZ, its first ETF, will.
For further details see:
RIET: Hoya Capital Has Turned Lemons Into Lemonade, But The 7% Yield Isn't Worth It