Is now the time to add some REIT exposure to portfolios? It may well be — dropping rates could really see those real estate investment trusts (REITs) once again excite curious investors. That category, then, deserves greater scrutiny, but of course not all real estate income ETFs are created equal. For those returning to the space or checking it out for the first time, it may be worth looking to the ALPS REIT Dividend Dogs ETF (RDOG) as a standout option.
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RDOG charges a 35 basis point fee for its approach. The fund tracks the S-Network REIT Dividend Dogs Index, an equal-weighted index of the five highest yielding U.S. REITs in each of the nine REIT categories. Intriguingly, it offers a powerful twist compared to other REIT-focused ETFs. RDOG excludes the mortgage REIT segment, avoiding REITs most exposed to credit spread issues. Instead, the fund adds technology REITs to potentially add some additional upside.
REIT Income ETF RDOG’s Dividend Focus
That has helped the strategy do well over the last few months. The fund has returned 8.3% over the last month and 6.35% over the last three months, according to ETF Database data. That has beaten both its ETF Database Category and FactSet Segment averages over both time frames. Over the last month, for example, those averages came in at 5% and 6.2%, respectively.
Of course, investors look to a real estate income ETF for more than just performance, but also yield and distributions. According to SS&C ALPS Advisors data, the strategy saw a 6.18% trailing 12-month yield as of September 12. It also offered a $0.55810 quarterly distribution as of June 25.
How, then, might investors consider the fund in the remaining months of 2025? If rate cuts do benefit tech, for example, tech REITs could benefit in turn. Meanwhile, a sputtering economic engine could see investors look to dividend-yielding investments and income to add some ballast. For those looking at alternatives, RDOG can appeal.
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