Core Viewpoint - The Columbia Research Enhanced Real Estate ETF (CRED) launched at an inopportune time, coinciding with a bear market in real estate, and has since delivered a negative return of 1.6% while managing only $3.1 million in assets, raising liquidity concerns for investors [1] Group 1: Market Conditions and Rate Cuts - The real estate sector has been in a downturn, with the Vanguard Real Estate ETF (VNQ) losing approximately 24% from its peak in December 2021 to the end of 2025, primarily due to the Federal Reserve's rate hikes from near zero to over 5% starting in March 2022 [2] - The Fed is expected to cut rates in December 2025, with forecasts suggesting further cuts in 2026, potentially lowering the fed funds rate to between 3% and 3.25% from the current 3.75% to 4% [2] Group 2: Impact of Lower Rates - Lower interest rates will reduce the cost of debt for property acquisition and development, enhance the attractiveness of REIT dividends compared to Treasury yields, and lower cap rates, thereby boosting property valuations [3] - CRED, which yields just over 4%, will benefit from a falling rate environment, making its income stream more competitive [3] Group 3: CRED's Investment Strategy - CRED allocates about 28% to infrastructure REITs, which are less sensitive to interest rate changes compared to traditional property types, providing steady cash flows from long-term leases [4] - However, this defensive positioning may limit upside potential when rates fall, as traditional REITs with higher leverage could benefit more from easing cycles [6] Group 4: Comparison with Alternatives - The Schwab U.S. REIT ETF (SCHH) offers a similar portfolio with lower liquidity risk, charging only 0.07% in annual fees compared to CRED's 0.33%, and has $7 billion in assets, providing greater scale and trading volume [7] Group 5: Future Considerations - The key factor for CRED in 2026 will be whether the Fed implements the expected rate cuts, alongside the performance of its infrastructure-heavy portfolio in capturing recovery opportunities [8]

Core Viewpoint - The article highlights three high-yield ETFs that offer over 5% returns through unique investment strategies, which can be beneficial for diversifying portfolios alongside lower-yield options [3][4]. Group 1: ETF Summaries - The Amplify Natural Resources Dividend Income ETF (NDIV) yields 5.72% monthly from 41 natural resource dividend stocks, with potential for a commodity supercycle driven by geopolitical events and green energy demand [5][7][8]. - The Alternative Access First Priority CLO Bond ETF (AAA) provides a yield of 5.19% monthly by investing exclusively in AAA-rated senior CLO debt tranches, offering a safer alternative to government bonds [5][9]. - The Columbia Research Enhanced Real Estate ETF (CRED) yields 5.56% and employs a rules-based system to select REITs with stronger growth and income potential [5]. Group 2: Market Context - Higher yields are expected to gain importance as the Federal Reserve shows a willingness to cut interest rates, potentially leading to increased interest in high-yield dividend ETFs [6]. - The current Fed Chair, Jerome Powell, is expected to be replaced by a more dovish appointee, which may further lower Treasury yields and enhance the appeal of high-yield investments [6].