Equity: U.S. Mortgages

MORT Top Performer Intra-day
Price $22.52
Today’s Change +0.15%(0.68)
3:59pm 01/23/2017
REM Bottom Performer Intra-day
Price $43.31
Today’s Change +0.26%(0.60)
4:00pm 01/23/2017
  • Overview
  • Efficiency
  • Tradability
  • Fit

ETF.com Insight

REM and MORT each hold a concentrated portfolio consisting solely of mortgage REITs, and for the most part look very similar to each other. In fact, the top holdings in each fund are nearlyBoth funds do a great job identical. Both funds do a great job of representing the market.
REM charges a few bps more than MORT and doesn't track its index quite as well. However, its massive asset base and strong liquidity mean that trading should be cheap and painless. MORT is a stable fund with reasonable liquidity, and it might be preferable for long-term investors who won't be trading in and out frequently. That said, for those seeking neutral exposure to mortgage REITs at a reasonable all-in price, REM is our Analyst Pick. (Insight updated 01/23/17)

All Funds (2)

REM $1.18 B 1178560260 Best liquidity

B 98
E
87
87
T
93
93
F
98
98

MORT $105.95 M 105949258.25 Slightly cheaper to hold

B 96
E
91
91
T
70
70
F
96
96

ETF.com Grade as 01/19/17

Equity: U.S. Mortgages

1 Year Total Return NAV
Performance  [as of 01/20/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: FTSE NAREIT All Mortgage Capped Index2.44%6.42%2.44%43.29%9.03%8.93%--
B 98.493173REM1178560260REMiShares Mortgage Real Estate Capped ETF2.76%0.28%18.57%16.35%7.77%8.52%--
B 95.688338MORT105949258.25MORTVanEck Vectors Mortgage REIT Income ETF2.32%6.31%2.27%43.37%8.88%9.18%--
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

ETF.com Efficiency Insight

Both US mortgage ETFs are reasonably efficient. MORT edges out REM due to its lower expense ratio and tighter (and more consistent) tracking of its index. REM dominates in assets, but MORTBoth US mortgage ETFs are reasonably efficient is stable and no threat to close. (Insight updated 01/23/17)

All Funds (2)

91
91.084419
87
87.174084

ETF.com Grade as 01/19/17

Equity: U.S. Mortgages

Tracking Difference (12 Month)

Ticker Expense Ratio Median Max. Upside Max. Downside Max LT/ST Cap Gains Rate Rule Legal Structure Fund Closure Risk Efficiency
MORT VanEck Vectors Mortgage REIT Income ETF 0.41% -0.49% -0.28% -0.60% 20.00% / 39.60% Low 91.084419
REM iShares Mortgage Real Estate Capped ETF 0.48% -0.41% -0.00% -1.10% 20.00% / 39.60% Low 87.174084

ETF.com Tradability Insight

REM is the easy choice for investors looking for liquidity. With hundreds of thousands of shares changing hands daily, tight spreads and a perfect block liquidity score, it blows MORT outREM is the easy choice for investors looking for liquidity of the water.
MORT has decent on-screen liquidity and reasonable spreads, so retail investors should be able to get in and out with relative ease. Use limit orders here and you should be fine. MORT does loose a notch in our block liquidity measure, in part due to a less-liquid underlying basket that will pose a slight obstacle to market makers. (Insight updated 01/23/17)

All Funds (2)

93
92.916398
70
69.87336

ETF.com Grade as 01/19/17

Equity: U.S. Mortgages

Ticker Median Daily Volume ($) Average Spread Creation Unit/Day Market Hours Overlap Underlying Volume/Unit % Creation Cost Per Unit (%) Impediment to Creations Score - Tradability
MORT VanEck Vectors Mortgage REIT Income ETF $413.23 K 0.27% 0.37 100.00% 0.32% 0.04% None 69.87336
REM iShares Mortgage Real Estate Capped ETF $15.28 M 0.04% 29.25 100.00% 0.50% 0.01% None 92.916398
Spread History
Premium/Discount History

ETF.com/ Block Liquidity

REM
5
4
3
2
1
MORT
5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

Both REM and MORT provide neutral exposure to the US mortgage market. REM earns a few extra points in our analysis as it tracks the same index we've chosen as a benchmark, but thethe differences between the two funds are marginal differences between the two funds are marginal. Ultimately, liquidity and structural concerns are likely to be the biggest differentiator here.
Both funds hold broad portfolios of mortgage REITs, but, like the industry, their portfolios are very concentrated. REM holds a few more securities than MORT, but they're similarly concentrated in their top-10 holdings—which are nearly identical between the two funds. REM and MORT also come with similarly impressive yields. (Insight updated 01/23/17)

All Funds (2)

98
98.493173
96
95.688338

ETF.com Grade as 01/19/17

Equity: U.S. Mortgages