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iShares Mortgage Real Estate ETF upgraded to Hold on improved fundamentals despite risks

Analyst Insights
08 Sep 2026
Seeking Alpha
View Source
Neutral
iShares Mortgage Real Estate ETF upgraded to Hold on improved fundamentals despite risks

The iShares Mortgage Real Estate ETF (REM) was upgraded to Hold due to better fundamentals in its top holdings like NLY, AGNC, and STWD, which now show reduced leverage, improved net interest margins, and more diversified portfolios. REM offers a sustainable 8.9% dividend yield in the near term but remains exposed to risks from interest rate volatility and leverage. Although REM trades at a discount compared to peers on price-to-book and price-to-cash-flow metrics, its higher risk profile suggests caution for income-focused investors.

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