ETFs To Benefit Or Lose From Rising Yields

ETFs to Lose

iShares Mortgage Real Estate ETF (REM - Free Report)

This fund offers exposure to the U.S. residential and commercial mortgage real estate sectors by tracking the FTSE NAREIT All Mortgage Capped Index. It holds 36 securities in its basket with large allocations to the top two firms, Annaly Capital (NLY - Free Report) and AGNC Investment (AGNC - Free Report) , that collectively make up for 28.2% share while other securities hold less than 8.1% share. REM is the most popular mortgage REIT ETF with AUM of $998.5 million and average daily volume of around 350,000 shares. The fund charges 48 bps a year as fees and has lost 0.2% over the past week. It has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.

SPDR S&P Homebuilders ETF (XHB - Free Report)

The most popular choice in the homebuilding space, XHB, follows the S&P Homebuilders Select Industry Index. In total, the fund holds about 35 securities in its basket with each accounting for less than 4.8% share. Homebuilding and building products account for 66.1% of the portfolio. The ETF has amassed $852.6 million in its asset base and trades in heavy volume of around 2.2 million shares. It charges 35 bps in fees per year and shed 1.9% over the past week. The fund has a Zacks ETF Rank #3 with a High-risk outlook.

SPDR Gold Trust ETF (GLD - Free Report)

Gold will lose its sheen as higher interest rates would diminish the metal’s attractiveness and the product tracking this bullion like GLD will lose. The fund tracks the price of gold bullion measured in U.S. dollars, and kept in London under the custody of HSBC Bank USA. It is the ultra-popular gold ETF with AUM of $37.5 billion and average daily volume of around 7.4 million shares a day. Expense ratio comes in at 0.40%. The fund is down 1.6% over the past week and has a Zacks ETF Rank #3 with a Medium risk outlook.

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