For those that have held REM for awhile, can you please provide insights on the positive and negatives.
Since REM is supposed to be a mutual fund of mREIT, you won't get laggards holding NLY and watched your capital lose money if bought near its 52-week high.
The yield isn't as great as other mREIT; I'll live with that for some capital appreciation.
Like anything else, you win by buying low and sell high. Target price to get in instead of buying at random dates.
With Bubble Ben on the job there is no downside. Buy, hold, collect the divy while price soars. What's not to like. All good for the next 2 years. 20's here we come.
Sentiment: Strong Buy
I love REM for its diversification - a nice lot.
You can buy all, or most individually and save the management fee, but this one's EZ, all IMHO. I own several MREITs, but added this one a few months ago for its diversification and the presumed expertise of their managers
I have not followed the PE ratios of the held securities enough to comment on that.
I hold REM for divvy,and in the belief that it is a relatively "safe" place to park money as long as interest rates remain low.
Which it appears they will for 2-3 years.
Would welcome any other comments on this, or ETFs in general...
REM is not a pure play in mREITs. It has exposure to large banking institutions. Whether that is a con or a pro depends on the future. If there is a contagion spread from Europe it will probably be negative. As the banking system continues to heal that gives the probability of appreciation.
Not so much into banking stocks, not sure where you got that info from - this ETF is pretty much an REIT ETF as you can see here: http://us.ishares.com/product_info/fund/holdings/REM.htm
Beware that 20% of fund is NLY and 20% is in AGNC, about 40% or so of the rest is in 10 of the other top 12 holdings. the other 20% of holding are made up of 15 or so other (smaller) REITS.
Pretty good diversification withing this sector. Much better way to play this sector than just investing in 1-4 stocks IMHO.
Keep in mind it is a sector play. Rates going up will hurt it. Bad news from NLY or AGNC will (obviously) hurt it. Other than that should be a relatively safe place for money - until rates start back up - then be careful.
Buy for the divvy, as stated - not for appreciation. Seems like a good buy under 14, if you can get it under 13.5 - even better - again it's all about the yield!