iShares Mortgage Real Estate Capped ETF (NYSEArca: REM)
YTD: Down 17.8%
Decline From Pre-Crisis High: 77%
Comment: Mortgage REIT ETFs were supposed to have benefit from the Federal Reserve’s easy money policies, but higher interest rates diminish the chances that homeowners will refinance their mortgage rates. Consequently, the securities held in ETFs like REM have declined in value to reflect the rising risk of holding high duration bonds over a longer period. [Rising Rates Burn mREIT ETFs]