The NEOS Real Estate High Income ETF's 10.9% annualized yield is drifting lower as option premiums compress, though year-to-date price gains of about 9% have cushioned the impact. Monthly payouts slipped from $0.51 in early 2025 to around $0.45 in 2026, with the trailing 12-month total at $5.43 and the forward estimate at $5.39. The fund relies heavily on call option premiums because its underlying REIT index yields only about 2.3%, making income sensitive to volatility. Welltower leads the concentrated portfolio at roughly 11%, and assets have grown to approximately $296 million. Analysts note that the distribution is sustainable at a lower run rate, but investors expecting a fixed 10.9% may be disappointed.
Welltower IncWelltower is the top holding (11%) in an ETF whose yield is shrinking due to lower option premiums, potentially reducing investor demand for the stock
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