Unlocking Dividend Yield Attractiveness: NBI Global Real Assets Income ETF in a Yield-Starved Market

In a world where cash yields are collapsing and bond markets are in disarray, the NBI Global Real Assets Income ETF (NREA) has emerged as a compelling case study in dividend yield attractiveness. With a forward dividend yield of 2.51% as of July 17, 2025—up from 1.93% just six months prior—the fund's recent performance reflects a broader shift in investor behavior toward real assets as a hedge against inflation and a source of income.

NREA's Dividend Surge: A Strategic Response to Market Demand

The ETF's most recent quarterly dividend of CAD 0.05 per share, paid on June 30, 2025, marks a 66.7% jump from the prior quarter's CAD 0.03. This aggressive increase is not an anomaly but part of a three-year compound growth trajectory of 30% annually, underscoring the fund's resilience in a challenging macroeconomic environment. Managed by National Bank of Canada, NREA's focus on high-yield sectors like utilities and industrial services has allowed it to capitalize on structural tailwinds, including rising energy prices and a global shift toward infrastructure investment.

The ETF's technical profile further reinforces its appeal. Despite a recent 0.29% price decline, NREA remains within a well-defined horizontal trading range, supported at $23.87 and poised to test resistance at $23.95. With a 90% probability of trading between $23.70 and $25.31 over the next three months, the fund appears to be a “Hold/Accumulate” candidate for income-focused investors.

Real Assets as a Yield Hedge: Outperforming Traditional Sectors

The surge in demand for real assets is no surprise. As central banks grapple with inflationary pressures, real estate, infrastructure, and commodities have proven their mettle as inflation-protected assets. REITs, in particular, have outperformed broad equities, with the iShares Residential & Multisector Real Estate ETF (REZ) delivering a 119.33% total return over the past decade. However, NREA's unique value proposition lies in its diversified exposure to global real assets, including commercial real estate, utilities, and industrial services—sectors that have demonstrated consistent cash flow generation even in downturns.

Consider the contrast with traditional high-yield REITs. While Park Hotels & Resorts (PK) offers a tantalizing 9.39% yield, its volatility and sector-specific risks (e.g., hotel industry cyclicality) make it a less attractive option for risk-averse investors. Similarly, Americold Logistics (COLD)'s 5.53% yield, though robust, is tied to the perishable goods storage sector, which faces regulatory and supply chain challenges. NREA, by contrast, spreads its exposure across asset classes that are less correlated with economic cycles, offering a balanced approach to yield generation.

Macro Tailwinds: Why Real Assets Are Winning

The Federal Reserve's September 2024 rate cut has further amplified the appeal of real assets. Lower borrowing costs reduce the discount rate for income-generating assets, making REITs and real asset ETFs more attractive. Additionally, the post-pandemic recovery has spurred demand for industrial real estate, while demographic shifts and urbanization are driving long-term growth in utilities and infrastructure.

For investors, the math is simple: NREA's 2.51% yield currently outpaces the S&P 500's 0.90% and offers a safer, more diversified alternative to high-yield REITs. While the ETF's yield is below the peak levels of industrial REITs, its lower volatility and broader asset allocation make it a more sustainable choice in a market where capital preservation is paramount.

Investment Thesis: Accumulate NREA for Income and Resilience

The NBI Global Real Assets Income ETF is not a high-flyer, but it is a workhorse. Its recent dividend acceleration, coupled with a defensive asset mix and favorable technical setup, positions it as a top-tier option for investors seeking yield in an era of economic uncertainty. With the ETF trading at a 1.5% discount to its net asset value (NAV) and a forward yield that outpaces most blue-chip equities, the case for accumulation is compelling.

However, risks remain. A sudden spike in interest rates could compress real estate valuations, and the ETF's exposure to global markets introduces currency and geopolitical risks. Investors should also monitor the fund's expense ratio (0.55%) against peers like the iShares Global Infrastructure ETF (IGF) at 0.35%.

Conclusion: A Cornerstone for the Yield-Hungry Portfolio

As the search for yield intensifies, the NBI Global Real Assets Income ETF stands out as a rare blend of income generation, diversification, and macroeconomic resilience. For investors willing to tolerate modest price volatility in exchange for a growing dividend stream and inflation protection, NREA represents a strategic allocation. With the Fed's rate-cut cycle just beginning and real asset demand showing no signs of abating, now may be the ideal time to position for the next phase of the real asset bull market.