For investors in mortgage real-estate investment trusts, which distribute most of their annual taxable income and pay yields averaging above 10%, the Fed action is welcome because it reduces the uncertainty over interest rates. Most important, yields on these investments will remain high and unmatched by anything else in the market right now. Some Mortgage REITs include: AG Mortgage Investment Trust (MITT), MFA Financial (MFA), Annaly Capital Management (NLY) and American Capital Agency (AGNC). Investors seeking diversification among individual mortgage REITs also can invest in exchange-traded mortgage-REIT funds: The iShares FTSE Nareit Mortgage Plus Capped Index Fund (REM), or The Market Vectors Mortgage REIT Income Fund (MORT).
- investment trusts