RNTY: YieldMax's Bold New Real Estate ETF That Builds Income, One Option At A Time

YieldMax is putting a new spin on real estate investing, and a jolt of adrenaline, with the introduction of its new fund, the YieldMax Target 12 Real Estate Option Income ETF RNTY. Created to produce an annual target income of 12%, this actively managed ETF pairs conventional real estate exposure with an aggressive options overlay strategy.

This ETF differentiates itself by writing options contracts on some (or all) of the 15 to 30 U.S.-listed real estate firms it owns, making stock ownership a monthly paycheck machine. Its holdings include such household names as Texas Pacific Land Corp TPL, Digital Realty Trust Inc. DLR, and Prologis Inc. PLD — solid footing for an ETF attempting to construct an income fortress.

Also Read: Exclusive: Chief Equity Strategist Unpacks The ‘Vanilla Barrier’ Advantage While Discussing Simplify’s Newest ETFs—SBAR And XV

The fund also aims for capital growth, so although income is the main event, possible profit from price rises isn’t ruled out.

To maintain things smoothly in motion, the ETF will carry at most 10% in cash, money market funds or short-term Treasuries, used as collateral or a liquidity cushion. The options strategy, on the other hand, is managed actively based on stock liquidity, price levels, implied volatility and general market conditions.

With interest rates continuing to wobble and REITs adjusting to a post-pandemic reality, income investors are looking for yield without gambling the house. This ETF provides a structured, options-fueled approach to accessing real estate returns — complete with a stream of income that isn’t directly correlated to market action.

Read Next:

Photo: REC and ROLL Stock via Shutterstock