REMLCredit Suisse X-Links Monthly Pay 2xLeveraged Mortgage REIT ETN
REML Fund Description
REML provides 2x leveraged exposure to a market-cap-weighted index of residential and commercial mortgage REITs. Leverage is reset monthly.
REML Factset Analytics Insight
REML provides 2x leveraged exposure to a portfolio of residential and commercial mortgage REITs. Unlike most leveraged products which reset their exposure daily, REML resets monthly. That means it can be held for longer periods without significant compounding effects, but returns will still drift away from the target 2x multiple over time, so a buy-and-hold strategy is not advisable. The underlying portfolio is concentrated into just a handful of mortgage REITs, but that's representative of this highly focused niche. The portfolio has historically yielded significant distributions, and REML pays a monthly coupon equal to twice this amount. But take note: those high yields have often come with lukewarm total returns and high volatility, which REML's leverage will magnify. Note too that the underlying mortgage REITs often use leverage, before the additional 2x multiple is applied. REML also charges both a steep tracking fee and a financing fee for its leverage, which make it expensive to hold. Unleveraged exposure can be had with iShares’ REM.
REML CHARTS AND PERFORMANCE
REML Portfolio Data
REML Index Data
REML Fund Structure
REML Tax Exposures
REML Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of REML. REML is rated a N/A out of 5.