Tuesday, September 4, 2012

Retail Investor Allocations Into Mortgage REITs and mREIT ETFs Continue To Grow


A common investing theme over the last year has been to allocate into income producing ETFs, including equity, MLP and REIT ETFs. The broad move into dividend paying ETFs by retail investors seems highly apparent in the two main ETFs that offer broad industry exposure to U.S. residential mortgage REITs.

The iShares FTSE NAREIT Mortgage Plus Capped Index Fund (REM) has now appreciated by about 19% so far in 2012. REM's assets under management have grown by around $200 fueled by a surge in net inflows this year, or well over fifty percent annualized growth from last year. Additionally, Van Eck's Market Vectors Mortgage REIT Income ETF (MORT) has appreciated by about 18% since the start of 2012, and has about $47 million in assets, with inflows up about 100% this year. Van Eck founded MORT in August of 2011, and so it has just turned one, while REM is about five years old.


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