Equity: U.S. Mortgages

MORT Top Performer Intra-day
Price $25.34
Today’s Change +0.14%(0.54)
4:00pm 06/23/2017
REM Bottom Performer Intra-day
Price $48.31
Today’s Change +0.20%(0.42)
4:00pm 06/23/2017
  • 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 06/23/17)

All Funds (2)

MORT $156.25 M 156245875 Slightly cheaper to hold

A 96
E
92
92
T
86
86
F
96
96

REM $1.43 B 1430250270 Best liquidity

B 98
E
87
87
T
92
92
F
98
98

ETF.com Grade as 06/15/17

Equity: U.S. Mortgages

1 Year Total Return NAV
Performance  [as of 06/22/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: FTSE NAREIT All Mortgage Capped Index--------------
A 95.569693MORT156245875MORTVanEck Vectors Mortgage REIT Income ETF5.24%9.30%17.29%29.90%9.36%10.10%--
B 97.841179REM1430250270REMiShares Mortgage Real Estate Capped ETF5.07%8.67%18.57%26.83%8.51%8.47%-2.37%
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 06/23/17)

All Funds (2)

92
92.173702
87
86.866395

ETF.com Grade as 06/15/17

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% -0.52% -0.35% -0.60% 20.00% / 39.60% Low 92.173702
REM iShares Mortgage Real Estate Capped ETF 0.48% -0.51% -0.25% -1.11% 20.00% / 39.60% Low 86.866395

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 06/23/17)

All Funds (2)

92
91.599959
86
86.079913

ETF.com Grade as 06/15/17

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 $913.12 K 0.21% 0.73 100.00% 0.38% 0.04% None 86.079913
REM iShares Mortgage Real Estate Capped ETF $12.96 M 0.06% 5.68 100.00% 0.57% 0.01% None 91.599959
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 06/23/17)

All Funds (2)

98
97.841179
96
95.569693

ETF.com Grade as 06/15/17

Equity: U.S. Mortgages