Invesco KBW Premium Yield Equity REIT ETF offers high yield but faces risks from tenant defaults and refinancing costs.

The Invesco KBW Premium Yield Equity REIT ETF (KBWY) delivers a high yield around 8.6% by focusing on small and mid-cap REITs weighted by dividend payout. Its monthly distributions have been stable recently, but risks remain due to tenant concentration in risky sectors like cannabis and high refinancing costs amid rising interest rates. Top holdings like Innovative Industrial Properties and Community Healthcare Trust face payout coverage challenges, which could pressure future dividends. While the fund's yield is attractive now, investors should expect potential distribution declines if economic conditions worsen or key tenants default.