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REM - ETF AI Analysis

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REM

iShares Mortgage Real Estate ETF (REM)

Rating:62Neutral
Price Target:
REM, the iShares Mortgage Real Estate ETF, has a solid but not top-tier rating, reflecting a mix of attractive income opportunities and meaningful risks in its mortgage REIT holdings. Strong contributors like AGNC and Ellington Financial help the fund with solid revenue growth, supportive earnings calls, and appealing valuations and dividend yields, while large positions such as Annaly add income but also bring concerns around high leverage and declining profitability. The main risk factor is the fund’s heavy concentration in highly leveraged mortgage real estate companies, which can amplify the impact of financial or market stress on the ETF.
Positive Factors
Recent Short-Term Strength
The ETF has shown strong gains over the past month, indicating improving short-term momentum.
Leading Holdings Showing Positive Trends
Several of the largest positions, including AGNC Investment, Starwood Property, Blackstone Mortgage, Arbor Realty, and Apollo Real Estate, have delivered positive year-to-date performance that supports the fund’s results.
Focused Exposure to U.S. Real Estate
The fund’s near-total focus on U.S. real estate companies gives investors targeted access to the domestic mortgage REIT market.
Negative Factors
High Concentration in a Few Stocks
A large portion of the portfolio is tied up in just a couple of names like Annaly Capital and AGNC Investment, which increases the impact if these companies struggle.
Single-Sector Risk
With almost all assets in the real estate sector, the ETF is highly sensitive to downturns in mortgage and property markets.
Mixed Performance Among Top Holdings
Some key holdings such as Rithm Capital, Dynex Capital, ARMOUR Residential REIT, and Ellington Financial have shown weak year-to-date performance, which can drag on overall returns.

REM vs. SPDR S&P 500 ETF (SPY)

REM Summary

The iShares Mortgage Real Estate ETF (REM) tracks the FTSE Nareit All Mortgage Capped Index and focuses on U.S. mortgage real estate investment trusts (REITs). These are companies that invest in home and commercial mortgages and related securities, aiming to earn income from the interest on these loans. Major holdings include well-known mortgage REITs like Annaly Capital and AGNC Investment. Investors might consider REM for its potential income and diversification within the real estate and financial sectors. However, it can be risky because mortgage REITs are sensitive to interest rate changes and can go up and down sharply.
How much will it cost me?The iShares Mortgage Real Estate ETF (REM) has an expense ratio of 0.48%, meaning you’ll pay $4.80 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is focused on a niche sector and is passively managed, tracking a specialized index of mortgage REITs.
What would affect this ETF?The iShares Mortgage Real Estate ETF (REM) could benefit from stable or declining interest rates, which generally support mortgage REITs by reducing borrowing costs and increasing the value of mortgage-backed securities. However, rising interest rates or a slowdown in the U.S. housing market could negatively impact the ETF, as its holdings are heavily concentrated in mortgage-related assets. Regulatory changes affecting the real estate or financial sectors may also influence the ETF's performance.

REM Top 10 Holdings

REM is heavily tilted toward U.S. mortgage REITs, with Annaly Capital and AGNC Investment acting as the main engines; both have been rising lately but still show a mixed pattern over the past few months as higher rates and funding costs bite. Starwood Property and Blackstone Mortgage add a steadier, more commercial flavor, helping to smooth some of the bumps. On the weaker side, Rithm Capital and Ellington Financial have been lagging, hinting at ongoing credit and earnings pressures. Overall, this is a concentrated, income-focused real estate play, not a broad market fund.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Annaly Capital22.33%$127.86M$16.34B17.19%
63
Neutral
AGNC Investment14.96%$85.68M$12.38B23.06%
66
Neutral
Starwood Property7.73%$44.24M$6.75B-4.13%
62
Neutral
Rithm Capital4.60%$26.31M$5.66B-7.75%
58
Neutral
Blackstone Mortgage4.59%$26.29M$3.39B5.73%
63
Neutral
Dynex Capital4.50%$25.74M$2.85B11.03%
60
Neutral
ARMOUR Residential REIT4.09%$23.44M$2.19B7.25%
58
Neutral
Ellington Financial3.33%$19.05M$1.64B1.14%
72
Outperform
Arbor Realty3.23%$18.50M$1.54B-29.89%
63
Neutral
Apollo Real Estate3.19%$18.27M$1.54B18.10%
64
Neutral

REM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
22.06
Positive
100DMA
22.29
Positive
200DMA
21.72
Positive
Market Momentum
MACD
0.33
Negative
RSI
61.12
Neutral
STOCH
58.22
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For REM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 22.62, equal to the 50-day MA of 22.06, and equal to the 200-day MA of 21.72, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 61.12 is Neutral, neither overbought nor oversold. The STOCH value of 58.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REM.

REM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$570.72M0.48%
62
Neutral
$624.77M0.38%
74
Outperform
$457.38M0.35%
71
Outperform
$455.82M0.35%
69
Neutral
$434.83M5.39%
64
Neutral
$402.99M0.42%
62
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
REM
iShares Mortgage Real Estate ETF
23.11
3.81
19.74%
IAT
iShares U.S. Regional Banks ETF
KIE
SPDR S&P Insurance ETF
KCE
SPDR S&P Capital Markets ETF
KBWD
Invesco KBW High Dividend Yield Financial ETF
MORT
VanEck Mortgage REIT Income ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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