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REM - AI Analysis
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iShares Mortgage Real Estate ETF (REM)
Rating:59Neutral
Price Target:
$23.00
Positive Factors
Strong Top Holdings
Several top holdings, including Annaly Capital and Apollo Real Estate, have delivered strong year-to-date performance, supporting the ETF's overall returns.
Focused Sector Exposure
The ETF's concentration in the real estate sector allows investors to target a specific industry with growth potential in mortgage-backed securities.
Steady Asset Flows
The fund's significant assets under management indicate consistent investor interest and stability.
Negative Factors
High Concentration in Top Holdings
The ETF is heavily weighted toward a few companies, such as Annaly Capital and AGNC Investment, increasing exposure to individual stock risks.
Underperforming Holdings
Several holdings, including ARMOUR Residential REIT and Arbor Realty, have lagged in performance, which could drag down overall returns.
Limited Geographic Diversification
With nearly all assets focused on U.S. companies, the ETF lacks exposure to international markets, reducing diversification.
REM vs. SPDR S&P 500 ETF (SPY)
AUM608.47M
RegionNorth America
Expense Ratio0.48%
Beta0.75
IssueriShares
Inception DateMay 01, 2007
Dividend Yield9.03%
Asset ClassEquity
Index TrackedFTSE Nareit All Mortgage Capped Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume592,200
30 Day Avg. Volume556,869
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
24.13Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering32
REM Summary
The iShares Mortgage Real Estate ETF (REM) is an investment fund that focuses on mortgage real estate investment trusts (REITs), which are companies that earn income from mortgage loans and mortgage-backed securities. It tracks the FTSE Nareit All Mortgage Capped Index and includes well-known companies like Annaly Capital and AGNC Investment. Investors might consider REM if they are looking for income-focused investments or want to diversify into the real estate sector. However, it’s important to note that this ETF is heavily tied to the real estate market, so its performance can be impacted by changes in interest rates or housing market conditions.
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
The iShares Mortgage Real Estate ETF (REM) is heavily concentrated in U.S.-based mortgage REITs, with Annaly Capital and AGNC Investment leading the charge. Both have shown steady gains recently, buoyed by their high dividend yields and robust liquidity, helping to stabilize the fund’s performance. However, Starwood Property and Blackstone Mortgage have been lagging, weighed down by bearish trends and profitability concerns. With nearly all its holdings rooted in the real estate sector, REM is a niche play for income-focused investors, though its reliance on a few key names makes it sensitive to sector-specific headwinds.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Annaly Capital | 20.13% | $120.09M | $13.52B | 9.80% | 63 Neutral | |
| AGNC Investment | 15.77% | $94.06M | $10.73B | 6.81% | 59 Neutral | |
| Starwood Property | 9.49% | $56.62M | $6.77B | -7.29% | 67 Neutral | |
| Arbor Realty | 4.58% | $27.35M | $2.26B | -22.29% | 73 Outperform | |
| Blackstone Mortgage | 4.31% | $25.74M | $3.11B | -2.00% | 63 Neutral | |
| Rithm Capital | 4.10% | $24.45M | $5.74B | 1.21% | 68 Neutral | |
| ARMOUR Residential REIT | 3.96% | $23.64M | $1.82B | -14.31% | 58 Neutral | |
| Dynex Capital | 3.84% | $22.90M | $1.98B | 9.06% | 60 Neutral | |
| Apollo Real Estate | 3.10% | $18.52M | $1.41B | 14.82% | 53 Neutral | |
| Ellington Financial | 2.70% | $16.13M | $1.34B | 6.96% | 65 Neutral |
REM Technical Analysis
Neutral
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Price Trends
22.24
Negative
21.77
Positive
21.31
Positive
Market Momentum
0.02
Negative
46.94
Neutral
63.94
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For REM, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 22.11, equal to the 50-day MA of 22.24, and equal to the 200-day MA of 21.31, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 63.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for REM.
REM Peer Comparison
Comparison Results
Performance Comparison
REM
iShares Mortgage Real Estate ETF
22.00
1.09
5.21%
KIE
SPDR S&P Insurance ETF
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IAK
iShares U.S. Insurance ETF
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KCE
SPDR S&P Capital Markets ETF
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IAT
iShares U.S. Regional Banks ETF
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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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