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The iShares Mortgage Real Estate ETF (REM) is an exchange-traded fund designed to track the performance of U.S. mortgage REIT companies. The ETF is managed by BlackRock through its iShares division and trades under the ticker REM on the Cboe BZX Exchange.
Classified as an equity ETF focused on financial real estate exposure, the fund seeks to reflect, before fees and expenses, the performance of the FTSE Nareit All Mortgage Capped Index.
The ETF follows a passive management strategy, maintaining a portfolio structured to replicate the composition and weighting of its benchmark index. The benchmark includes U.S. mortgage REITs, companies that primarily invest in mortgage-related assets, including mortgage-backed securities (MBS), real estate financing instruments, and mortgage-credit assets.
Composition / Exposure profile
REM provides exposure primarily associated with:
• U.S. mortgage REITs.
• Mortgage-backed securities (MBS).
• Residential mortgage credit.
• Commercial mortgage credit.
• U.S. mortgage markets.
• U.S. yield curve.
• Financial real estate exposure.
• Real estate income strategies.
The ETF’s performance is particularly sensitive to Federal Reserve monetary-policy decisions, fluctuations in the U.S. yield curve, and mortgage-financing conditions in the United States.
Changes in mortgage-credit spreads, delinquency levels, interest-rate volatility, and liquidity conditions within the MBS market may directly affect the fund’s behavior. The ETF may also reflect developments in the U.S. residential and commercial real estate markets.
Structure and costs
REM shares trade on the secondary market on the Cboe BZX Exchange during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).
The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. REM may distribute income derived from mortgage-related assets and financial instruments held by companies within the portfolio.
Because the ETF maintains concentrated exposure to mortgage REITs, its performance may exhibit elevated sensitivity to monetary conditions, credit markets, and fluctuations within the U.S. financial real estate sector.
History and evolution of the ETF
The iShares Mortgage Real Estate ETF was launched in 2007 during a period marked by expansion in ETFs linked to U.S. real estate and mortgage-credit markets.
Since inception, the fund has reflected movements associated with the U.S. mortgage market, including interest-rate fluctuations, changes in credit conditions, and developments in the mortgage-backed securities market.
In recent years, REM has reflected Federal Reserve tightening cycles, changes in the U.S. yield curve, volatility within financial real estate markets, and evolving liquidity and mortgage-financing conditions in the United States.
Additional Information
iShares Mortgage Real Estate ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $547.32 million.
Over the past 12 months, iShares Mortgage Real Estate ETF recorded a return of 13.08%, with its price trading between $20.45 and $24.03 during the same period.
The ETF is traded under the ticker REM.
