"SRET holds a concentrated basket of high-yielding REITs and mortgage REITs from around the world. The fund does not use options or leverage to manufacture its yield."
"Equity REITs generate income from rents. Mortgage REITs, often called mREITs, generate income from the spread between what they earn on mortgage assets and what they pay to borrow."
"The mREIT names in SRET have a well-documented history of dividend cuts when rates move against them. The 10-year Treasury yield is currently around 4.30%."
SRET provides a monthly dividend yield of 8.53% by holding a concentrated basket of high-yielding equity and mortgage REITs. The fund does not employ options or leverage, relying instead on dividends from its holdings. Equity REITs generate income from rents, while mortgage REITs earn from the spread on mortgage assets. SRET's portfolio is primarily focused on Real Estate and Financials, exposing it to interest rate risks, particularly from mREITs, which have a history of dividend cuts in unfavorable rate environments.
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