REITs Are Finally Winning and the QQQI Family Runs a Real Estate Fund Paying 11%

The IYR REIT ETF is performing well, up 13% year to date, but its yield is modest, falling in the low single digits. For those seeking income, the IYRI fund, managed by the NEOS team, offers a compelling alternative. IYRI owns a diversified basket of major REITs and adds a covered-call strategy to generate monthly distributions, currently yielding around 11%.

This is achieved by capping price gains at 10%, which is lower than IYR's 13% but still outperforms a plain REIT index fund like IYR, which has risen 12.77% year to date. IYRI's monthly distribution of $0.4526, paid on July 24, 2026, equates to $5.4312 per share, providing roughly $5,400 annually on a $50,000 investment. However, IYRI charges a slightly higher fee of 0.68% compared to IYR's 0.57%.

The sector is showing strength with housing starts at 1.43 million units in June 2026 and the Case-Shiller Home Price Index reaching a new high of 335.1 in May. Investors should consider their tax situation and income needs when deciding between IYR and IYRI.