A Closer Look at a Mortgage REIT ETF Yielding 12%

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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