Looking ahead, any tapering to the Fed bond purchasing program would likely push up long-term yields only. Meanwhile, the Fed has stated that it will maintain low short-term rates, given the current low inflation and relatively high unemployment environment.
The Market Vectors Mortgage REIT Income ETF (NYSEArca: MORT) and the iShares Mortgage Real Estate Capped ETF (NYSEArca: REM) are two ETFs that track mREITs. Both funds have significant exposure to Annaly and American Capital Agency Corp (NYSE: AGNC) – MORT has 12.7% in NLY and 10.3% in AGNC while REM holds 14% in NLY and 11.3% in AGNC.
MORT shows a 14.24% 12-month yield, and REM offers a 16.1% 12-month yield. [Despite Headwinds, mREIT ETF Dividends Endure]
MORT is up 3.1% over the last month and up 1% over the past three months. REM has gained 6.8% over the last month and 4.3% over the last three months.
iShares Mortgage Real Estate Capped ETF
For more information on real estate investment trusts, visit our REITs category.
Max Chen contributed to this article.