The component REITs are a percentage of the entire portfolio so correspondingly their distribution payout are a percentage of the ETF payout. Averaging out the distributions from the REITs and after costs, the ETF dividend payout could be lesser than a high yield REIT.
In the ETF, you are spreading risk across the component REITs. If you only have one REIT, any changes in the distribution payout will have a higher impact.
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