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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 mid-range rating that reflects a mix of attractive income potential and meaningful risk from its mortgage REIT holdings. Strong contributors like Annaly Capital and AGNC support the fund with solid dividends, positive technical trends, and generally healthy balance sheets, while weaker names such as Rithm Capital and Two Harbors, which face profitability and leverage challenges, weigh on the overall quality. The main risk is the fund’s heavy concentration in highly leveraged mortgage-focused companies, which can make it more sensitive to interest rate changes and financial stress in the real estate credit market.
Positive Factors
Focused Exposure to Mortgage REITs
The fund is heavily invested in mortgage real estate companies, giving investors targeted access to this income-oriented corner of the real estate market.
Meaningful Size
With several hundred million dollars in assets, the ETF is large enough to offer reasonable trading liquidity for most everyday investors.
Recent Short-Term Rebound
Despite weak results so far this year, the fund has shown a recent uptick over the past month, suggesting some short-term recovery in its holdings.
Negative Factors
High Concentration in Top Holdings
A large share of the fund is tied up in just a few companies, so problems at those firms could have a big impact on the ETF’s performance.
Weak Year-to-Date Performance
The ETF has delivered negative results so far this year, reflecting challenges in the mortgage real estate sector.
Higher Expense Ratio
The fund’s ongoing fee is on the higher side for an ETF, which can eat into long-term returns compared with lower-cost options.

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 mortgage real estate investment trusts (REITs). These are companies that earn money from home loans and mortgage-backed securities rather than owning physical buildings. Big names in the fund include Annaly Capital and AGNC Investment. Investors might consider REM if they want income-focused exposure to the U.S. mortgage market and to diversify beyond regular stocks and bonds. However, this ETF can be risky because it is heavily tied to interest rates and the health of the housing and credit markets, so its price and payouts can move 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 essentially a pure play on U.S. mortgage REITs, with Annaly Capital and AGNC Investment sitting in the driver’s seat—but both have been lagging lately, weighing on the fund. Mid-sized positions like Starwood Property, Rithm Capital, Dynex, and Blackstone Mortgage are also under pressure, adding to the drag rather than providing balance. A bright spot is Two Harbors, which has been rising and helps offset some of the weakness. Overall, this is a highly concentrated, income-focused real estate bet that lives and dies with the mortgage market’s mood.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Annaly Capital24.90%$134.00M$17.41B12.06%
63
Neutral
AGNC Investment16.25%$87.47M$12.71B13.54%
66
Neutral
Starwood Property7.52%$40.45M$6.18B-15.71%
62
Neutral
Rithm Capital5.02%$27.00M$5.46B-17.98%
58
Neutral
Dynex Capital4.57%$24.59M$3.19B2.48%
60
Neutral
ARMOUR Residential REIT4.38%$23.59M$2.32B-0.43%
58
Neutral
Blackstone Mortgage4.10%$22.05M$2.81B-12.02%
63
Neutral
Ellington Financial3.69%$19.88M$1.70B3.78%
72
Outperform
Orchid Island Capital2.97%$15.99M$1.31B-8.25%
65
Neutral
Two Harbors2.84%$15.27M$1.27B21.73%
53
Neutral

REM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
21.65
Positive
100DMA
21.61
Positive
200DMA
21.56
Positive
Market Momentum
MACD
RSI
STOCH
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 22.00, equal to the 50-day MA of 21.65, and equal to the 200-day MA of 21.56, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, 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
$545.05M0.48%
62
Neutral
$682.54M0.38%
74
Outperform
$650.54M0.35%
71
Outperform
$554.68M0.38%
75
Outperform
$460.40M0.35%
68
Neutral
$366.00M0.43%
62
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
REM
iShares Mortgage Real Estate ETF
21.76
1.92
9.68%
IAT
iShares U.S. Regional Banks ETF
KIE
SPDR S&P Insurance ETF
IAK
iShares U.S. Insurance ETF
KCE
SPDR S&P Capital Markets 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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