A Look At Mortgage REIT ETFs Post Q3 Earnings

ETFs to Watch

The Fed is on course for another rate hike in December with a few more expected next year. This will result in rising rates, affecting the bottom line and book values for these companies as well constraining  dividend paying paying capacity. Below we have highlighted two mREITs ETFs that have significant exposure to the abovementioned companies (see: all the Real Estate ETFs here).

iShares Mortgage Real Estate ETF REM

The fund tracks the FTSE NAREIT All Mortgage Capped Index, measuring the performance of the residential and commercial mREIT market in the United States. It comprises 36 holdings with the two mentioned companies occupying 28.9% weight and constituting the top two holdings in the fund. The fund’s AUM is $1.2 billion and expense ratio is 0.48%. The fund has returned 3% over the past month (as of Nov 13). It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

VanEck Vectors Mortgage REIT Income ETF MORT

The fund tracks the MVIS Global Mortgage REITs Index, which is intended to track the overall performance of U.S. mortgage real estate investment trusts. It comprises 26 holdings with the aggregate weight of the mentioned companies being 19%. The fund’s AUM is $144.6 million and the expense ratio is 0.41%. The fund has returned 3.3% over the past month (as of Nov 13). It has a Zacks ETF Rank #3 with a Medium risk outlook.

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