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EOS Real Estate High Income ETF (IYRI) closed September 26 at $50.24, up 0.86%, then dipped to $50.16 after hours. The fund trades within a 52‑week range of $43.74–$52.49, showing relative stability amid market volatility. With $124.46 million in assets and a 0.68 % expense ratio, IYRI is still early but quickly attracting income‑seeking investors.
IYRI is a covered‑call ETF focused on large U.S. REITs. Its top holdings—Prologis (7.75 %), Welltower (7.49 %), American Tower (7.01 %)—make up nearly half the portfolio. By writing call options on these positions, the fund delivers an annualized forward yield of 8.65 %, far above the 1.7 %–3.6 % range of its underlying holdings. The August dividend was $0.457 per share, confirming consistent monthly payouts.
The Fed’s recent 25‑basis‑point rate cut to 4.00 %–4.25 % lowers borrowing costs for debt‑heavy REITs, improving acquisition economics. While the current environment is more cautious than the 2020‑22 cycle, lower rates still support IYRI’s option‑income strategy.
Since its January 2025 launch, IYRI has returned 0.00 % YTD and 1‑year, lagging the Derivative Income ETF category (6.58 % YTD, 12.12 % 1‑yr). On a 3‑yr horizon, the category averages 10.56 % annually, but IYRI’s short track record limits full‑cycle testing. Despite underperformance, the 8.7 % yield and monthly income attract investors wary of a sharp REIT rebound.
Sector exposure is 98.66 % real estate, with industrial and healthcare REITs dominating. Holdings such as Equinix, Digital Realty, Simon Property Group, and Realty Income provide diversification across data centers, retail, and net‑lease properties.
IYRI trades at a 0.31 % premium to its $50.19 NAV, a modest level indicating demand without excess. Its 32× P/E reflects the higher multiples typical of REITs. The covered‑call strategy caps upside but offers downside protection in flat or mildly bearish markets.
Key risks include the fund’s short history and the inherent upside limits of a covered‑call approach. In a strong REIT rally, IYRI would likely underperform peers due to option obligations. With only eight months of trading and modest scale versus established REIT ETFs like VNQ, performance across multiple cycles remains unproven.
Overall, IYRI delivers a rare 8.7 % yield, monthly distributions, and exposure to blue‑chip REITs amplified by a dynamic covered‑call overlay. Fed rate cuts provide a stabilizing backdrop, making IYRI suitable for investors expecting real‑estate to trade sideways rather than surge. It earns a Buy rating as an income‑first play, though upside is capped in a bullish REIT recovery.
