Yield trap — a 9.5% payout the price does not believe. SRET paid $1.90 per share over the trailing 12 months, a 9.53% trailing yield at the $19.93 close on October 27, 2026, from 30 of the highest-yielding REITs globally. Global X's own total returns to September 30, 2026 are +0.87% a year over 5 years and −0.26% a year over 10 years on NAV — the distributions have run far ahead of total return for a decade, and the price is down 54.05% over 10 years. Global X warns distributions may contain return of capital, and 2024 distributions did include return-of-capital portions.
Key risk: The highest-yield screen selects REITs whose prices have already fallen, so the fund keeps paying a high rate on a shrinking capital base and the monthly cheque is funded partly by principal.
Changes if: Five-year NAV total return turns decisively positive with the price trend stabilizing, and distributions are covered by holdings' dividends without return of capital — a single good year does not change this grade.
- ✕Trap check — distribution vs. total return §8 review triggered at ≥8%. 5-yr NAV total return +0.87%/yr and 10-yr −0.26%/yr vs a 9.53% distribution rate; 10-yr price return −54.05%. Distributions persistently exceed total return.
- ✕Expense check 0.58% exceeds the §7 fail line (>0.30%).
- ✕Price-erosion check 52-week high $23.48 to $19.93 at Oct 27 close; 1-yr price return −8.89%; yield rose as price fell.
- ✓Top-10 check (information) Top 10 at 41.9% — reported as information; concentration is not the failing check, the payout-vs-return gap is.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.