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REM vs USRT
Which ETF would AI Choose? iShares Mortgage Real Estate ETF (REM) vs. iShares Core U.S. REIT ETF (USRT)
Key Takeaways
- Different exposure, same broad sector: REM concentrates on mortgage real estate investment trusts (mREITs), while USRT holds diversified equity REITs that own physical properties.
- Cost gap is significant: USRT charges a 0.08% expense ratio versus 0.48% for REM, a structural cost advantage that compounds over time.
- Concentration risk: REM's top two holdings, NLY and AGNC, represent roughly a third of the fund, while USRT spreads risk across about 127 holdings.
- Risk profile differs sharply: REM carries leverage and interest-rate sensitivity inherent to mortgage lending, whereas USRT offers broader, more defensive property-level exposure.
- Tickeron AI Verdict: USRT is the favored ticker based on diversification, cost efficiency, and more balanced risk exposure.
Introduction
Investors evaluating real estate exposure often encounter two very different instruments under the same umbrella. iShares Mortgage Real Estate ETF (REM) and iShares Core U.S. REIT ETF (USRT) do not compete directly; they represent alternative strategies within the broader real estate investment trust (REIT) universe. REM targets income-seeking investors willing to accept the leverage and rate sensitivity of mortgage REITs, while USRT provides diversified access to companies that own and operate income-producing properties. Comparing the two clarifies how sector exposure, cost structure, and risk positioning shape long-term outcomes.
iShares Mortgage Real Estate ETF (REM) Overview
REM is a passively managed fund that tracks the FTSE Nareit All Mortgage Capped Index, a market-cap-weighted benchmark of U.S. residential and commercial mortgage REITs. These mREITs do not own buildings; they earn income by financing, originating, or investing in mortgages and mortgage-backed securities. The fund holds roughly 34 to 37 positions, making it a narrow and concentrated vehicle.
Top holdings include Annaly Capital Management (NLY) at roughly 22%, AGNC Investment (AGNC) near 15%, and Starwood Property Trust (STWD) at about 7%, followed by Rithm Capital (RITM), Dynex Capital (DX), and Blackstone Mortgage Trust (BXMT). The portfolio is almost entirely allocated to the financials sector through mortgage finance. REM's expense ratio is 0.48%, and it launched in 2007. Its defining feature is elevated income potential paired with high sensitivity to borrowing costs and credit spreads.
iShares Core U.S. REIT ETF (USRT) Overview
USRT is a low-cost, passively managed fund tracking the FTSE Nareit Equity REITs 40 Act Capped Index, which measures U.S.-listed equity REITs while excluding mortgage, infrastructure, and timber REITs. With roughly 127 holdings and assets in the multi-billion-dollar range, it offers broad diversification across property types.
Leading positions include Welltower (WELL) near 9%, Prologis (PLD) around 7%, Equinix (EQIX) near 6%, and Simon Property Group (SPG) around 4.5%, with Digital Realty (DLR), Public Storage (PSA), and Realty Income (O) also prominent. Sector allocation skews toward specialized, health care, retail, residential, and industrial REITs. USRT's expense ratio is just 0.08%, and it has been listed since 2007. Its defining feature is broad, property-level income exposure with moderate volatility relative to mortgage finance.
Industry and Thematic Backdrop
Both funds operate within a real estate landscape heavily influenced by interest-rate expectations. Mortgage REITs such as those in REM depend on the spread between short-term borrowing costs and long-term asset yields, making them acutely sensitive to Federal Reserve policy and yield-curve dynamics. Equity REITs in USRT are also rate-sensitive, but their performance is driven more by property fundamentals such as occupancy, rent growth, and sector-specific demand, including data centers, logistics, and senior housing.
Recent market cycles have favored thematic growth areas like data infrastructure and industrial logistics, which are prominent in USRT. Meanwhile, elevated financing costs and credit uncertainty have pressured mortgage REIT earnings cycles and book values. Capital flows into real estate have been selective, rewarding diversified, lower-cost vehicles while penalizing highly leveraged, rate-dependent strategies.
Performance and Positioning Comparison
In recent months, the two funds have diverged along structural lines. REM's high-yield profile can deliver strong income, but its relative positioning has been challenged by tighter net interest margins and occasional credit deterioration among its lenders. USRT has benefited from resilient demand in data center, health care, and industrial properties, supporting steadier relative performance and lower volatility.
From a relative positioning standpoint, USRT offers superior diversification, with no single holding dominating the portfolio, and materially lower costs that translate into a durable advantage over time. REM's concentrated mortgage exposure means its returns swing more with rate policy and credit cycles. For investors weighing risk-adjusted outcomes, USRT's broader sector exposure and defensive property mix provide a more balanced profile, while REM remains a specialized, higher-yield instrument best suited to those with a strong rate-cycle conviction.
AI Screener
Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market using technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of securities with customizable criteria such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending funds, breakout candidates, and market opportunities more efficiently than manual screening. Explore the AI Screener to refine your own real estate ETF comparison and uncover signals aligned with your strategy.
Tickeron AI Verdict
Based on observable structural factors, Tickeron's AI would likely favor USRT in a current-market comparison. The fund combines a materially lower expense ratio, substantially broader diversification across property types, and reduced single-name concentration with exposure to durable growth segments such as data centers and health care. While REM offers higher income potential, its leverage and interest-rate sensitivity introduce greater volatility and downside risk. Given the emphasis on cost efficiency, trend consistency, and risk-adjusted positioning, USRT represents the more balanced probability-weighted choice between the two.
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.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is REM is a Buy and USRT is a Buy.
REM's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for REM moved out of oversold territory on October 20, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 27 similar instances when the indicator left oversold territory. In 26 of the 27 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
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 33 of 43 cases over the following month. The odds of a continued upward trend are 77%.
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%.
REM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 56 of 70 cases where REM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 80%.
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 69 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 81%.
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.
USRT's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for USRT turned positive on October 09, 2026. Looking at past instances where USRT's MACD turned positive, the stock continued to rise in 41 of 45 cases over the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on USRT as a result. In 65 of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 77%.
USRT moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for USRT crossed bullishly above the 50-day moving average on November 03, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 15 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 88%.
Following a +2.99% 3-day Advance, the price is estimated to grow further. Considering data from situations where USRT advanced for three days, in 261 of 312 cases, the price rose further within the following month. The odds of a continued upward trend are 84%.
The Aroon Indicator entered an Uptrend today. In 248 of 310 cases where USRT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 80%.
Bearish Trend Analysis
The 10-day RSI Indicator for USRT moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 24 similar instances where the indicator moved out of overbought territory. In 23 of the 24 cases, the stock moved lower in the following days. This puts the odds of a move lower at 90%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for USRT moved below the 200-day moving average on November 04, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where USRT 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 82%.
USRT broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
| REM | USRT | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 90% | 1 day ago 90% |
| Stochastic ODDS (%) | 1 day ago 80% | 1 day ago 78% |
| Momentum ODDS (%) | 1 day ago 81% | 1 day ago 77% |
| MACD ODDS (%) | 1 day ago 77% | 1 day ago 90% |
| TrendWeek ODDS (%) | 1 day ago 83% | 1 day ago 84% |
| TrendMonth ODDS (%) | 1 day ago 83% | 1 day ago 82% |
| Advances ODDS (%) | 19 days ago 82% | 7 days ago 84% |
| Declines ODDS (%) | 5 days ago 85% | 5 days ago 82% |
| BollingerBands ODDS (%) | 1 day ago 90% | 1 day ago 82% |
| Aroon ODDS (%) | 1 day ago 82% | 1 day ago 80% |
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REM and
Correlation & Price change
A.I.dvisor indicates that over the last year, REM has been loosely correlated with HASI. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if REM jumps, then HASI could also see price increases.
| Ticker / NAME | Correlation To REM | 1D Price Change % | ||
|---|---|---|---|---|
| REM | 100% | +1.16% | ||
| HASI - REM | 62% Loosely correlated | +0.62% | ||
| AFCG - REM | -4% Poorly correlated | +8.36% |