Another problem for mREIT ETFs is dwindling supply of investable mortgage paper, leaving REM and MORT holdings such as Annaly Capital (NYSE: NLY) and American Capital Agency (NasdaqGS: AGNC) scrambling to find new investment vehicles.
The pain has been felt at the ETF level. Of REM’s top-five holdings, a list that includes Annaly Capital American Capital Agency, Starwood Property Trust (NYSE: STWD), Chimera Investment (NYSE: CIM) and Two Harbors Investment (NYSE: TWO), the BEST performer in the past month is Starwood with a loss of about 5%.
Market Vectors Mortgage REIT ETF
ETF Trends editorial team contributed to this article. Global Trends clients own shares of REM.