jmi, wmc, nymt, ai. And yet has some really other poor choices in the lineup (starwood? really? how is it 3rd on the weighting list?. clny? really?). And who is istar? What is up with them? I dont think FUR even really is a mreit, might as well own O in the fund. Oh and "Pennymac Portgage Investment"? hmmm, spellcheck anyone? :)
UBS does not choose the components of MORL. They use the market vectors index which is based on a formula which defines what a mREIT is and then weighs them by market capitalization. " provides at least 90% coverage of the investable universe based on strict size and liquidity requirements. The unique pure-play approach of the index demands that companies have to generate the majority of their revenues from Mortgage REITs." The Index is a rules based index intended to track the overall performance of publicly traded mortgage REITs.