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A Closer Look at a Mortgage REIT ETF Yielding 12%


I do the “ETF of the Week” for MarketWatch every Thursday on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments within the exchange traded fund market.

This week, I focused on the iShares Mortgage REIT Capped ETF (NYSEArca:REM) . Mortgage-backed real estate investment trusts offer high yields, but potential investors should understand the risks and short-term outlook that currently support the assets.

REM is currently paying a 30-day SEC yield of 11.65%, according to manager BlackRock. [Best REIT ETFs for Yield]

Mortgage REITs are leveraged investment companies that borrow to buy mortgages and other real-estate related securities. [Mortgage REIT ETFs]

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.