VanEck Mortgage REIT ETF offers 12% yield but faces payout risks from a flattening Treasury curve.

The VanEck Mortgage REIT Income ETF (MORT) delivers a high 12% yield by passing through dividends from mortgage REITs like AGNC and Annaly. However, the flattening 10-year to 2-year Treasury yield curve is squeezing the interest spread that supports these dividends, risking future payout cuts. While AGNC and Annaly have maintained dividends, their yields reflect a cautious environment rather than growth. Investors should expect MORT's distributions to fluctuate with interest rate changes and consider pairing it with more stable income assets if they need consistent payments.