A Closer Look at a Mortgage REIT ETF Yielding 12%
March 21st 2013 at 12:15pm by Tom Lydon
I do the “ETF of the Week” for MarketWatch every Thursday on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments within the exchange traded fund market.
This week, I focused on the iShares Mortgage REIT Capped ETF (NYSEArca: REM). Mortgage-backed real estate investment trusts offer high yields, but potential investors should understand the risks and short-term outlook that currently support the assets.
REM is currently paying a 30-day SEC yield of 11.65%, according to manager BlackRock. [Best REIT ETFs for Yield]
Mortgage REITs are leveraged investment companies that borrow to buy mortgages and other real-estate related securities. [Mortgage REIT ETFs]
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