GET DAILY SIGNALSiShares Mortgage Real Estate ETF (REM) Shows Resilience with +0.6% Gain Amid -17% Three-Month Decline
Key Takeaways
- The iShares Mortgage Real Estate ETF (REM) is a passive, non-diversified ETF that tracks the FTSE Nareit All Mortgage Capped Index, holding roughly 35 U.S. mortgage REITs across residential and commercial mortgages.
- The portfolio is concentrated: NLY (Annaly Capital Management) and AGNC (AGNC Investment Corp.) account for roughly 38% of assets combined, with commercial mortgage REITs such as STWD (Starwood Property Trust) and BXMT (Blackstone Mortgage Trust) also prominent.
- REM has been essentially flat over the trailing 30 days (about +0.6%) but remains in a broader downtrend, having declined roughly 17% over the trailing three months.
- The dominant macro driver is the interest-rate environment: shifts in short-term funding costs, mortgage-backed security (MBS) spreads, and book-value expectations directly affect mortgage REIT earnings and net asset value (NAV).
- Agency-focused mortgage REITs have generally held up better than commercial mortgage REITs, where multifamily and commercial-real-estate credit concerns have weighed on shares.
- High distribution yields remain the fund's defining attraction, but they carry meaningful interest-rate and credit risk.
- For additional context on this fund, explore detailed Price Targets and a data-driven Forecast on the dedicated REM pages.
- Readers can also explore Trending AI Robots to discover AI-driven trading strategies across markets.
REM ETF Overview
REM seeks to track the FTSE Nareit All Mortgage Capped Index, a market-capitalization-weighted benchmark of U.S. real estate investment trusts that primarily hold residential and commercial mortgages. The fund invests at least 80% of its assets in index components, carries a net expense ratio of 0.48%, and manages roughly $460 million in assets under management (AUM). It holds a concentrated roster of about 35 securities and is classified as non-diversified, meaning a handful of names exert outsized influence on returns.
The largest positions are agency mortgage REITs, which invest mainly in government-backed residential mortgage securities. Annaly Capital Management (NLY) and AGNC Investment Corp. (AGNC) are the two largest weightings at roughly 22% and 16% of assets, respectively. Commercial mortgage REITs—including Starwood Property Trust (STWD), Blackstone Mortgage Trust (BXMT), Rithm Capital (RITM), and Ladder Capital (LADR)—add exposure to loans tied to office, multifamily, and other commercial property. This financials-heavy profile ties fund performance tightly to funding costs, spread levels, and prepayment activity rather than broad equity-market momentum. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Industry and Thematic Landscape
Mortgage REITs are spread-based businesses: they borrow at short-term rates, invest in longer-duration mortgage assets, and distribute most of their income as dividends. That model is highly sensitive to the shape of the yield curve and the level of short-term financing costs. When the Federal Reserve lowers rates, funding costs typically decline and book values on agency MBS can improve; when rates rise or the curve moves unfavorably, net interest margins compress.
The sector also splits into two distinct risk profiles. Agency mortgage REITs hold securities backed by government-sponsored entities and carry limited credit risk but substantial interest-rate and prepayment risk. Commercial mortgage REITs originate or acquire whole loans and face direct credit risk, particularly in multifamily and office segments that have experienced valuation pressure and refinancing challenges in a higher-rate environment. Steady investor demand for income-oriented assets has supported the group, but that support has been partly offset by volatility in long-term Treasury yields and MBS spreads.
Performance and Positioning Snapshot
Over the trailing 30 days, REM has been largely range-bound, ending the period nearly unchanged at roughly $17.80 per share—a gain of about 0.6%. The path was not smooth, as the fund dipped into the mid-$16s in mid-October before recovering alongside a stabilization in bond-market conditions.
The broader trend remains negative. Over the trailing three months, REM has declined approximately 17%, reflecting a difficult stretch for mortgage REIT valuations. Agency-focused names such as Annaly and AGNC, which dominate the portfolio, have faced pressure from rate volatility and spread widening, while commercial mortgage REITs have been weighed down by credit concerns in commercial real estate. Because the top two holdings represent such a large share of assets, their book-value and dividend dynamics have a disproportionate effect on fund performance. From what I see, this concentration makes close monitoring essential.
2026 Outlook and Key Factors to Monitor
Several structural factors are likely to shape REM's path through 2026. The trajectory of Federal Reserve policy—and the resulting path of short-term funding costs—remains the single most important variable for mortgage REIT net interest margins. Sustained or renewed declines in long-term Treasury yields and narrower MBS spreads would tend to support book values, while a sharp rise in yields or a re-steepening of the curve could renew pressure.
Credit conditions in commercial real estate, especially multifamily and office, will also matter for the fund's commercial mortgage REIT holdings. Refinancing activity, loan-loss provisions, and property valuations should be monitored alongside capital flows into income-oriented ETFs. The durability of distributions will be closely watched as well: mortgage REITs' high yields are attractive only if book value and earnings stability hold up. Key risks include persistent rate volatility, a deterioration in commercial property credit, and the concentration risk inherent in a top-heavy, non-diversified portfolio. I’m watching this closely as rate decisions unfold.
Exploring Tickeron AI Screener for ETF Analysis
In my analysis of funds like REM, I often turn to Tickeron’s AI Screener to quickly filter opportunities based on volatility, performance trends, and technical signals. This helps me compare mortgage REIT ETFs against broader industry peers without manual effort. It has become a regular part of my process for building more informed watchlists on income-focused vehicles.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
REM in upward trend: price expected to rise as it breaks its lower Bollinger Band on October 19, 2026
REM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 42 of 47 cases where REM's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 89%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where REM's RSI Indicator exited the oversold zone, 24 of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 89%.
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The Moving Average Convergence Divergence (MACD) for REM just turned positive on October 15, 2026. Looking at past instances where REM's MACD turned positive, the stock continued to rise in 30 of 43 cases over the following month. The odds of a continued upward trend are 70%.
Following a +2.58% 3-day Advance, the price is estimated to grow further. Considering data from situations where REM advanced for three days, in 254 of 311 cases, the price rose further within the following month. The odds of a continued upward trend are 82%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 06, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on REM as a result. In 75 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 88%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where REM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 85%.
The Aroon Indicator for REM entered a downward trend on October 28, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Industry description
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
Advertisement