REM and MORT Pay Over 9% Yields, But Both Have Lost Money Over Five Years
There are variations in some asset class categories that can vary widely.
Melco Resorts: Undervalued With Catalysts Coming
Melco Resorts & Entertainment will open the rebranded REM hotel in Macau in 2H26, targeting premium customers. REM will offer 150 suites averaging 1,000 square feet, emphasizing avant-garde design for high-end clientele. MLCO is among three Macau gaming operators introducing new or refurbished premium hotel capacity this year.
Why This High-Yield ETF Recovered 28% While Most Income Investors Slept
iShares Mortgage Real Estate ETF (NYSEARCA:REM) pays a yield that stops most income investors in their tracks.
REM's 9.6% dividend yield faces a test as mortgage spreads narrow in 2026
iShares Mortgage Real Estate ETF (NYSEARCA:REM) carries a 9.22% dividend yield and $545 million in net assets, making it one of the more accessible ways to own a basket of mortgage REITs.
Why Annaly and AGNC make REM's 9.55% yield more durable than it looks
The iShares Mortgage Real Estate ETF (NYSEARCA:REM) offers investors a 9.55% dividend yield through a portfolio that is 100% concentrated in mortgage REITs.
REM: Favorable Macro Outlook For Mortgage REITs In 2026
mREIT holdings of the iShares Mortgage Real Estate Capped ETF benefited from lower funding costs in 2025, with incremental Fed rate cuts likely to provide further relief in 2026. U.S. GDP growth is projected to accelerate to 2.3% in 2026, providing a tailwind for mREITs focused on commercial mortgages. This should allow for REM's 8.65% dividend to return to growth, as indicated by its higher SEC yield.
REM: Robust Total Return Outlook
The iShares Mortgage Real Estate Capped ETF invests exclusively in mREITs, exhibiting a 69.17% allocation to its top ten positions. REM's ten largest positions are projected to deliver capital gains of about 4.5% over the next twelve months. The ETF's ~9.3% current yield remains its main appeal, although weakness in commercial mREITs has delayed an anticipated return to dividend growth.
REM: Solid Choice Unless A Recession Hits
REM is one of those ETFs I am always tracking, even if I don't currently own it (I don't). The mortgage REIT industry is often a steady source of above-average dividend yield, enough to not be too concerned about earning much more than the dividend provides. However, REM has a history of performing very poorly in recessions, which gives me pause, since we might be heading into one soon.
REM: Not Worth The Expense
The iShares Mortgage Real Estate ETF is heavily skewed towards a few large-cap mortgage REITs, limiting diversification benefits. REM's 0.48% expense ratio is high and unnecessary, as similar exposure can be achieved by holding key constituent REITs directly. Employment outlook is crucial for REM's performance; current economic signals suggest stability, but the expense ratio remains unjustifiable.
S&P 500's Dividend Growth Needs To Pick Up To Beat REM's 9.35% Yield
The iShares Mortgage Real Estate Capped ETF invests in 33 US mREITs but holds a significant 65% concentration in its top ten holdings. Muted year-to-date performance has resulted in REM trading at a significantly higher dividend yield relative to the SPY. REM's dividend is well-covered considering the valuations of its top ten holdings.
REM: A Likely Beneficiary From The Fed Pivot
The iShares Mortgage Real Estate Capped ETF has substantially underperformed the SPDR S&P 500 ETF in 2024. Top ten holdings account for about 65.47% of REM's net assets. The ETF offers a well-covered ~9% yield even after the 0.48% expense ratio.
