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REM: Not Worth The Expense

REM: Not Worth The Expense


Published on 2025-05-13 06:21:01 -
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  • The iShares Mortgage Real Estate ETF is heavily skewed towards a few large-cap mortgage REITs, limiting diversification benefits. Explore more details here.

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 ]