iShares Mortgage REIT ETF yields 9.55% but carries interest rate risk investors must understand

The iShares Mortgage Real Estate ETF (REM) offers a high yield of 9.55%, driven mainly by its holdings in mortgage REITs like Annaly Capital and AGNC Investment. These companies profit from the spread between short-term borrowing costs and mortgage-backed securities income. While current dividends are covered by earnings and supported by recent Fed rate cuts, risks remain from interest rate volatility and yield curve compression. REM suits income investors willing to accept price swings as the trade-off for higher yield potential.