The Federal Reserve has cut interest rates three times since September 2025, lowering the upper limit of the federal funds rate to 3.75%; the real estate market has responded positively, with three related ETFs posting strong performance, including the Hoya Capital High Dividend Yield ETF (RIET), which has yielded nearly 10.5%.

Since September 2025, the Federal Reserve has cut interest rates three times, lowering the upper limit of the federal funds rate target to 3.75%. As a result, the real estate market has been active. The article notes that three real estate ETFs have performed exceptionally well during this rate-cutting cycle:

1. **Vanguard Real Estate ETF (VNQ)**: Up 16% year-to-date, offering a dividend yield of approximately 3.5%, it invests primarily in a diversified portfolio of U.S. equity REITs.
2. **Hoya Capital High Dividend Yield ETF (RIET)**: Up 12% year-to-date, it offers stable monthly distributions through a mix of equity REITs, mortgage REITs, and REIT preferred stocks, with a current yield of nearly 10.5%.
3. **iShares Mortgage Real Estate ETF (REM)**: Up 3% year-to-date, with a dividend yield of approximately 8.8%, it invests primarily in mortgage REITs and benefits from the steepening of the yield curve resulting from falling short-term interest rates while the 10-year U.S. Treasury yield remains around 4.65%.