Sep. 21 at 11:58 PM
$IYRI With the Federal Reserve cutting interest rates
$IYRI will perform well particularly for income-focused investors like retirees. The fund's strategy of investing in REITs & using a call option overlay is well-suited for a declining-rate environment. The underlying assets of
$IYRI are REITs which often carry high levels of debt. As the Fed lowers rates it becomes cheaper for these companies to borrow & refinance existing debt which can increase their profitability & improve cash flow. Lower interest rates tend to make the housing & commercial real estate markets more dynamic. Mortgage rates decline which can stimulate property sales & demand ultimately boosting the value of real estate holdings within
$IYRI. When the Fed lowers rates the yields on traditional fixed-income investments like bonds also fall. This makes higher-yielding assets such as REITs & other income-focused funds more attractive to investors seeking stable income streams.
