Core Viewpoint - The real estate sector is seen as attractive for income investors, especially with expectations of upcoming interest rate cuts by the Federal Reserve [1] Group 1: Real Estate Sector Performance - The Dow Jones U.S. Real Estate Capped Index has a trailing 12-month dividend yield of 2.32%, which is approximately double that of a basic S&P 500 ETF, but still not particularly high [2] - The NEOS Real Estate High Income ETF (IYRI), launched in January, has shown strong performance with assets under management totaling $136.4 million and an impressive yield of 11.71% [3] Group 2: Investment Strategy - IYRI operates as a covered call ETF, allowing for potential upside participation if real estate investment trusts (REITs) rally, particularly around the Federal Reserve's meeting on October 29 [4] - Unlike traditional REIT ETFs, IYRI is less dependent on Federal Reserve actions, which is beneficial given the uncertainty of the Fed's decisions [5] Group 3: REIT Market Dynamics - In the third quarter of 2025, U.S. REITs raised a total of $21.3 billion through secondary debt and equity offerings, with $14.0 billion from debt, $6.6 billion from common equity, and $740 million from preferred equity [6] - REITs are sensitive to interest rates, but IYRI's structure mitigates this sensitivity, potentially positioning it favorably if the Fed acts as anticipated [7] - Lower interest rates are crucial for enhancing REIT performance by reducing borrowing costs, increasing property values, and strengthening dividend-paying models, with historical data showing REITs outperforming broader U.S. stocks following Fed easing cycles [8]