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.
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.