Real estate investment trusts (REITs) and sector-related exchange traded funds are a good source of attractive payouts in a low-yield environment.
REITs are securities that trade like a stock and invest in real estate directly through property ownership or mortgages.
Consequently, revenue are mainly generated through rents or interest on mortgage loans. To qualify for special tax considerations, the asset also distributes the majority of income, about 90% of taxable profits, to investors as dividends.
Related: Prepping for Wider REITs ETF Sector Adoption
Most REIT ETFs have solid dividend yields, but the Global X SuperDividend REIT ETF (NasdaqGS: SRET) truly tempts with a trailing 12-month yield of nearly 8%.
SRET combines the familiarity of U.S. REITs as such fare accounts for over three-quarters of the new ETF’s weight with the yield advantage of Australia. Australian REITs account for nearly 11% of SRET’s, which could prove advantageous given that country’s historically low interest rates.