VanEck Mortgage REIT Income ETF hikes dividend 6%, yield hits 13.4% amid interest rate pressures.

VanEck Mortgage REIT Income ETF (MORT) raised its dividend by about 6%, pushing its yield to 13.4%, attracting income-focused investors. The ETF invests in mortgage REITs that profit from the spread between short-term borrowing costs and long-term mortgage yields. However, rising interest rates and a compressed yield curve have squeezed these spreads, pressuring dividends and causing the ETF's net asset value (NAV) to decline. Key holdings Annaly and AGNC show mixed earnings results, reflecting market volatility. While the high yield is appealing, investors face risks from NAV erosion and interest rate fluctuations, making MORT a high-income but capital-risk investment.