REM - ETF AI Analysis
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iShares Mortgage Real Estate ETF (REM)
REM, the iShares Mortgage Real Estate ETF, has a solid but not top-tier rating, mainly driven by large positions in Annaly Capital (NLY) and AGNC, which offer strong momentum, attractive dividends, and supportive earnings commentary despite leverage and profitability concerns. Smaller holdings like Rithm Capital (RITM) and ARMOUR Residential REIT (ARR) introduce more financial challenges, such as declining revenues and operational inefficiencies, which weigh on the fund’s overall quality. The main risk factor is the ETF’s heavy concentration in highly leveraged mortgage REITs, making it sensitive to interest rate changes and funding conditions.
REM vs. SPDR S&P 500 ETF (SPY)
- AUM
- 454.17M
- Region
- North America
- Expense Ratio
- 0.48%
- Beta
- 0.61
- Issuer
- iShares
- Inception Date
- May 01, 2007
- Dividend Yield
- 11.61%
- Asset Class
- Equity
- Index Tracked
- FTSE Nareit All Mortgage Capped Index
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 real estate investment trusts (REITs), companies that earn income from home and commercial mortgage loans. Well-known holdings include Annaly Capital and AGNC Investment. Investors might consider REM if they want exposure to the real estate and financial sectors and are looking for potential income from mortgage-related businesses. A key risk is that mortgage REITs can be very sensitive to interest rate changes and housing market conditions, so the ETF’s value can move up and down sharply.
How much will it cost me?
This ETF has an expense ratio of 0.48%, which means you’ll pay about $4.80 per year for every $1,000 invested. That’s higher than the average cost of broad, passively managed index ETFs because this fund focuses on a specialized niche of mortgage REITs, which typically requires more targeted management.
What would affect this ETF?
REM focuses on U.S. mortgage REITs like Annaly and AGNC, so it can benefit if interest rates stabilize or fall, housing and credit markets stay healthy, and real estate lending remains strong, supporting income from mortgage assets. On the downside, sharp interest rate moves, a weak U.S. economy, rising mortgage defaults, or tighter financial regulations could hurt the profits and dividends of its highly concentrated real estate holdings.
REM Top 10 Holdings
REM is heavily tilted toward U.S. mortgage REITs, with Annaly Capital and AGNC Investment sitting in the driver’s seat—but both have been lagging lately, putting a noticeable drag on the fund. Mid-sized players like Starwood Property, Dynex Capital, and ARMOUR Residential aren’t offering much relief, as their performance has also been under pressure. The bright spots are smaller positions like Rithm Capital and Ladder Capital, which have shown more resilient or rising recent trends, but they’re not big enough to fully offset the broader sector slump.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 NLY | Annaly Capital | 23.02% | $102.59M | $14.57B | -14.41% | 63Neutral |
 AGNC | AGNC Investment | 15.86% | $70.70M | $11.07B | -15.12% | 66Neutral |
 STWD | Starwood Property | 7.01% | $31.24M | $4.67B | -30.89% | 62Neutral |
 RITM | Rithm Capital | 5.27% | $23.48M | $5.28B | -16.71% | 58Neutral |
 EFC | Ellington Financial | 4.81% | $21.44M | $1.49B | -15.88% | 72Outperform |
 DX | Dynex Capital | 4.64% | $20.70M | $2.75B | -21.69% | 60Neutral |
 BXMT | Blackstone Mortgage | 4.50% | $20.03M | $1.88B | -40.27% | 63Neutral |
 ARR | ARMOUR Residential REIT | 4.27% | $19.05M | $1.84B | -25.76% | 58Neutral |
 LADR | Ladder Capital | 3.55% | $15.83M | $1.17B | -13.98% | 66Neutral |
 ORC | Orchid Island Capital | 3.35% | $14.95M | $932.15M | -34.02% | 65Neutral |
REM Technical Analysis
Price Trends
Market Momentum
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 17.06 is below the 20-day moving average (MA) of 17.34, below the 50-day MA of 18.86, and below the 200-day MA of 20.64, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 36.69 is Neutral, neither overbought nor oversold. The STOCH value of 34.18 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
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| REM | $17.06 | $18.50(8.44% Upside) | $454.17M | 0.48% | 62Neutral |
 IAT | $60.24 | $69.32(15.07% Upside) | $646.16M | 0.37% | 74Outperform |
 KIE | $64.37 | $69.14(7.40% Upside) | $569.91M | 0.35% | 71Outperform |
 IAK | $149.68 | $154.44(3.18% Upside) | $482.95M | 0.37% | 74Outperform |
 KCE | $157.28 | $185.80(18.13% Upside) | $436.42M | 0.35% | 66Neutral |
 MORT | $7.58 | $9.40(24.02% Upside) | $316.51M | 0.43% | 61Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| REM | iShares Mortgage Real Estate ETF | 17.06 | -3.22 | -15.89% | |
| IAT | iShares U.S. Regional Banks ETF | 60.24 | 11.91 | 24.65% | |
| KIE | SPDR S&P Insurance ETF | 64.37 | 7.93 | 14.04% | |
| IAK | iShares U.S. Insurance ETF | 149.68 | 24.66 | 19.72% | |
| KCE | SPDR S&P Capital Markets ETF | 157.28 | 13.96 | 9.74% | |
| MORT | VanEck Mortgage REIT Income ETF | 7.58 | -1.50 | -16.53% |
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.