“Deregulation at the bank level could be perceived to be a negative for mREITs, but we believe our “CRE thesis” remains intact as the [Office of the Comptroller of the Currency] OCC will continue to keep an eye on CRE lending, leaving plenty of runway for the mREITs to originate loans without sacrificing credit. On the residential side, higher rates negatively affect RMBS portfolios, but we believe our companies are well hedged against higher rates, which should protect book value.”
Related: 44 Best REITs ETFs to Generate Yields
MORT and REM, like other REIT assets become more attractive when yields on other fixed-income assets are pushed down. On the bright side for REM and its investors is the fact that the ETF’s dividend is expected to rise for the first time since 2014.
The VanEck Vectors Mortgage REIT Income ETF has a trailing 12-month dividend yield of 8.31%.
“Mortgage REITs may potentially stand to benefit from the evolving mortgage finance market but are sensitive to interest rate and regulatory changes,” according to VanEck.
VanEck Vectors Mortgage REIT Income ETF (NYSEArca: MORT)
