PowerShares KBW Premium Yield Equity REIT (IRC)
If ICF is a play on the titans of real estate, then the PowerShares KBW Premium Yield Equity REIT (KBWY) is a bet on the small fries. The ETF tracks 33 mid and small-cap equity REITS.
However, small does have its advantages — namely bigger dividend yields.
As investors flock to the big boys for their safety, smaller REITs have historically yielded much, much more. For example, $1 billion market capped Inland Real Estate (IRC) yields around 5.4% (versus Simon’s 3.2%).
As a bonus, KBWY weights its holdings based on highest dividend yields. That fact produces a 5.53% overall yield on KBWY shares. Meanwhile, KBWY has managed to produce a 10% return since the beginning of the year — more than VNQ and ICF.
Expenses run 0.35%.