Fundamental Income Net Lease Real Estate ETF Price & Performance (NETL)

The REIT sector has seen a rally as falling interest rates since July 2024 have boosted performance. The Morningstar US Real Estate Index outperformed the broader market, returning 28% over the last year. Analysts suggest REIT share prices will continue to move inversely to interest rate trends.1

Income-focused investors are eyeing high-yield REITs offering dividends as high as 16.8%. However, these investments come with risks, such as potential dividend reductions or deteriorating fundamentals. Notable names include Orchid Island Capital and ARMOUR Residential REIT, with yields of 16.8% and 15.1%, respectively.2

REIT ETFs are becoming an attractive option for diversified real estate exposure. These funds offer a simplified way to invest in the sector, providing access to a mix of REITs while spreading risk. With growing interest, investors are increasingly turning to these options for steady income streams.3