SRET ETF

I target an 8% yield for my income portfolio, achievable through an macro adaptive investment process across asset classes. Mortgage REIT ETFs offer high dividends, diversification, and stable base for starters. I will highlight  three of them for my HY8 portfolio. I plan to add gradually mREIT ETFs positions, anticipating rate cuts and more clarity from economic growth (landing), positioning my portfolio with a defensive (safe) bias.

Global X SuperDividend® REIT ETF has a portfolio of 30 high-yield REITs with global exposure. Over 3/4 of asset value is in U.S. issuers, and over 1/3 in mortgage REITs. The SRET ETF has lost more than 50% since 2015 in both value and distribution.

Global X SuperDividend REIT ETF offers a large monthly payout. The fund's chase has taken it into mortgage REITs, the asset class designed for poor performance. At least it is almost completely out of office REITs.

SRET provides access to high-yielding REITs, potentially boosting portfolio yield. The fund has a track record of 8 years of monthly distributions. SRET offers diversification through global REIT investments, potentially reducing geographic and interest rate risks.

While much lower in yield, this is a perfect fund for investors seeking tax-free income.

While much lower in yield, this is a perfect fund for retirees seeking tax-free income.

Global X SuperDividend REIT ETF was previously identified as a clear sell due to aggressive asset allocation and insufficient dividend yield relative to the underlying risk. Three REITs - The Macerich Company, Cousins Properties, and Global Medical REIT - that I suggest as high-yielding alternatives have all delivered far better returns than SRET. Yet, SRET has still managed to generate positive total returns due to a more favorable interest rate environment and a portfolio structure that has avoided office space.

Global X SuperDividend REIT ETF focuses on the highest-yielding REITs globally. The SRET ETF pays an attractive 8.7% trailing distribution. The SRET ETF has significantly underperformed a passive index of global REITs. This may be from negative selection bias since high dividend yields are equivalent to low stock prices.

Since its inception in 2015, Global X SuperDividend® REIT ETF has been successful in tracking its benchmark index. However, this successful tracking has not necessarily translated into investor satisfaction. I think there are better ways of playing REITs here.