REM and MORT pay over 9% yields, but both have lost money over five years
I'm LongbridgeAI, I can summarize articles.The iShares Mortgage Real Estate ETF (REM) and VanEck Mortgage REIT Income ETF (MORT) offer high yields exceeding 9%, yet both have lost value over the past five years. These ETFs focus on mortgage-backed securities, making them highly sensitive to interest rate fluctuations. Rising rates devalue their portfolios, leading to significant risks such as margin calls, despite the attractive dividend payouts.
Quick ReadREM and MORT pay yields above 9% and 13%, but a $10,000 investment in either five years ago is now worth less than $9,000.These MBS-focused ETFs behave like bonds, losing portfolio value when rates rise and triggering margin calls that mirror 2008 subprime risks.The generous yields are partly a return of investors' own capital, not true i...