Charmingly Eccentric Real Estate Investments
The Neuberger Berman Real Estate Securities Income Fund Inc
High Yield with a Twist
Are you looking for a unique investment opportunity that offers high current income and inflation-resistant real estate exposure? Look no further than The Neuberger Berman Real Estate Securities Income Fund Inc. This fund boasts an impressive 11.01% yield, significantly higher than the 2.52% yield of the iShares U.S. Real Estate ETF.
While the high yield of this fund may be attractive to investors seeking income, it’s important to note that the fund has underperformed the U.S. real estate index over the past decade. One of the reasons for this underperformance is the fund’s exposure to leveraged losses during market downturns.
The NRO closed-end fund’s portfolio is primarily invested in equity REITs, which are believed to offer better inflation protection compared to mortgage REITs. This unique approach to real estate investing sets The Neuberger Berman Real Estate Securities Income Fund Inc apart from other traditional real estate investments.
How Does This Investment Affect Me?
As an investor, investing in The Neuberger Berman Real Estate Securities Income Fund Inc may provide you with an opportunity to earn a high current income and exposure to inflation-resistant real estate assets. However, it’s important to consider the fund’s past performance and potential risks associated with leveraged losses during market downturns.
How Does This Investment Affect the World?
While The Neuberger Berman Real Estate Securities Income Fund Inc may offer attractive yields to investors, its underperformance in comparison to the U.S. real estate index could have broader implications for the real estate market. Investors should consider the fund’s portfolio composition and investment strategy when evaluating its impact on the world of real estate investing.
Conclusion
Overall, The Neuberger Berman Real Estate Securities Income Fund Inc presents a unique opportunity for investors seeking high current income and inflation-resistant real estate exposure. However, potential risks associated with leveraged losses and past underperformance should be carefully considered before making an investment decision.
