Tue, May 13, 2025
[ Tue, May 13th 2025 ]: Seeking Alpha
REM: Not Worth The Expense

REM: Not Worth The Expense

The article from Seeking Alpha discusses the investment case for REM, the iShares Mortgage Real Estate Capped ETF, and concludes that it is not worth the expense. The author, Brad Thomas, highlights that REM has underperformed compared to other real estate ETFs and the broader market, with a total return of just 1.4% over the past year. He attributes this poor performance to the fund's high expense ratio of 0.48% and its concentration in a few large holdings, particularly in agency mortgage-backed securities. Thomas argues that investors would be better off investing in lower-cost, more diversified real estate ETFs or individual mortgage REITs that offer higher yields and better growth prospects. He recommends avoiding REM due to its high costs and lackluster performance.

Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/article/4746895-rem-not-worth-expense ]