“Led by double-digit dividend yields, investors dived into mortgaged REITs back in 2012 and 2013. Now the group is coming off an ugly second quarter, where prices fell sharply amid a bond market rout fueled by expectations that the Federal Reserve will finally raise interest rates in September. Conviction is waning that the Fed will take action next month amid recent market turmoil,” reports Johanna Bennett for Barron’s.
MORT and REM, like other REIT assets become more attractive when yields on other fixed-income assets are pushed down. The two ETFs are each down more than 11% year-to-date and both hit 52-week lows on Monday.
iShares Mortgage Real Estate Capped ETF
