Equity: U.S. Mortgages

MORT Top Performer Intra-day
Price $23.45
Today’s Change +0.13%(0.56)
12:24pm 03/01/2017
REM Bottom Performer Intra-day
Price $45.16
Today’s Change +0.11%(0.24)
12:25pm 03/01/2017
  • 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 03/01/17)

All Funds (2)

REM $1.22 B 1220202880 Best liquidity

B 99
E
87
87
T
92
92
F
99
99

MORT $111.54 M 111538684.8 Slightly cheaper to hold

B 95
E
92
92
T
73
73
F
95
95

ETF.com Grade as 02/23/17

Equity: U.S. Mortgages

1 Year Total Return NAV
Performance  [as of 02/28/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: FTSE NAREIT All Mortgage Capped Index5.70%7.97%7.35%35.60%8.36%9.17%--
B 98.627034REM1220202880REMiShares Mortgage Real Estate Capped ETF2.76%4.43%18.57%31.75%7.15%8.08%--
B 94.614695MORT111538684.8MORTVanEck Vectors Mortgage REIT Income ETF5.33%7.15%6.63%35.01%7.85%9.40%--
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 03/01/17)

All Funds (2)

92
92.135799
87
87.129137

ETF.com Grade as 02/23/17

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% -0.50% -0.28% -0.60% 20.00% / 39.60% Low 92.135799
REM iShares Mortgage Real Estate Capped ETF 0.48% -0.47% -0.08% -1.11% 20.00% / 39.60% Low 87.129137

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 03/01/17)

All Funds (2)

92
91.643532
73
72.673162

ETF.com Grade as 02/23/17

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 $530.0 K 0.20% 0.46 100.00% 0.40% 0.04% None 72.673162
REM iShares Mortgage Real Estate Capped ETF $12.64 M 0.04% 5.63 100.00% 0.62% 0.01% None 91.643532
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 03/01/17)

All Funds (2)

99
98.627034
95
94.614695

ETF.com Grade as 02/23/17

Equity: U.S. Mortgages