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REM - ETF AI Analysis
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iShares Mortgage Real Estate ETF (REM)
Rating:62Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year to date, indicating positive recent momentum.
Leading Holdings Performing Well
Several of the largest positions, including Annaly Capital, AGNC Investment, and Rithm Capital, have delivered strong year-to-date results that support the fund’s overall performance.
Focused Exposure to U.S. Mortgage REITs
The fund’s near-total focus on U.S. real estate and mortgage-related companies gives investors targeted exposure to this specific income-oriented segment of the market.
Negative Factors
High Concentration in Top Holdings
A large share of the portfolio is tied up in just a few names like Annaly Capital and AGNC Investment, which increases the impact if any of these companies run into trouble.
Sector Concentration Risk
Almost all assets are in the real estate sector, so the ETF is highly sensitive to downturns in mortgage and property markets.
Moderately High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees instead of going to investors.
REM vs. SPDR S&P 500 ETF (SPY)
AUM583.17M
RegionNorth America
Expense Ratio0.48%
Beta0.57
IssueriShares
Inception DateMay 01, 2007
Dividend Yield8.71%
Asset ClassEquity
Index TrackedFTSE Nareit All Mortgage Capped Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume842,888
30 Day Avg. Volume814,301
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
25.07Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering32
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
REM Summary
REM is the iShares Mortgage Real Estate ETF, which follows the FTSE Nareit All Mortgage Capped Index. It invests mainly in U.S. mortgage REITs—companies that earn money from mortgage loans and mortgage-backed securities. Top holdings include well-known names in the mortgage REIT space like Annaly Capital and AGNC Investment. Investors might consider REM for its focus on income and diversification within real estate and financials. However, this ETF can be quite sensitive to interest rate changes and the health of the housing and credit markets, so its price and payouts can go up and down.
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 sitting in the driver’s seat. Both have been rising over the past few months, giving the fund a helpful tailwind despite some recent wobbling. Starwood Property has been more of a steady but unexciting passenger, while Blackstone Mortgage adds a modest bright spot with improving momentum. On the flip side, Rithm Capital and Ellington Financial have been lagging, acting like sandbags on performance in an otherwise tightly focused, income-oriented real estate portfolio.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Annaly Capital | 22.68% | $129.71M | $16.50B | 2.56% | 63 Neutral | |
| AGNC Investment | 14.92% | $85.32M | $12.09B | 2.50% | 66 Neutral | |
| Starwood Property | 8.12% | $46.46M | $6.69B | -12.57% | 62 Neutral | |
| Blackstone Mortgage | 4.47% | $25.57M | $3.28B | -5.97% | 63 Neutral | |
| ARMOUR Residential REIT | 4.35% | $24.85M | $2.14B | -6.84% | 58 Neutral | |
| Dynex Capital | 4.29% | $24.55M | $2.75B | -6.47% | 60 Neutral | |
| Rithm Capital | 3.94% | $22.53M | $5.44B | -18.36% | 58 Neutral | |
| Arbor Realty | 3.62% | $20.69M | $1.66B | -28.94% | 63 Neutral | |
| Apollo Real Estate | 3.18% | $18.21M | $1.48B | 4.69% | 64 Neutral | |
| Ellington Financial | 2.55% | $14.61M | $1.52B | -11.54% | 72 Outperform |
REM Technical Analysis
Negative
―
Price Trends
22.81
Negative
22.18
Negative
21.47
Positive
Market Momentum
-0.11
Positive
37.54
Neutral
45.15
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For REM, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 22.59, equal to the 50-day MA of 22.81, and equal to the 200-day MA of 21.47, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 37.54 is Neutral, neither overbought nor oversold. The STOCH value of 45.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REM.
REM Peer Comparison
Comparison Results
Performance Comparison
REM
iShares Mortgage Real Estate ETF
22.14
0.90
4.24%
IAT
iShares U.S. Regional Banks ETF
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―
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KCE
SPDR S&P Capital Markets ETF
―
―
―
KBWD
Invesco KBW High Dividend Yield Financial ETF
―
―
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IAK
iShares U.S. Insurance ETF
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―
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MORT
VanEck Mortgage REIT Income ETF
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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.
Disclaimer
This 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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