Vaneck Mortgage REIT Income ETF Performance and Risk Evaluation

The VanEck Mortgage REIT Income ETF is a popular investment option for those looking to generate income from real estate investments. It tracks the performance of the MVIS US Mortgage REITs Index.

The fund invests in a diversified portfolio of mortgage real estate investment trusts (REITs), which are companies that own or finance real estate properties. This diversification helps to reduce risk and increase potential returns.

The fund's investment objective is to provide high current income and long-term capital appreciation by investing in a diversified portfolio of mortgage REITs. The fund's investment strategy is to invest in a mix of mortgage REITs that have a history of paying consistent dividends and have a strong track record of performance.

The VanEck Mortgage REIT Income ETF is a solid choice for investors. It was launched on August 16, 2011.

The fund's inception date is a notable milestone. It's a good idea to research the fund's history and performance over time.

The fund's legal name is VanEck Mortgage REIT Income ETF. The fund family name is VANECKFUND.

The VanEck Mortgage REIT Income ETF offers a unique investment opportunity for those looking to diversify their portfolio. This ETF tracks the performance of the MVIS US Mortgage REITs Index, which is comprised of US-listed mortgage real estate investment trusts (REITs).

Mortgage REITs are companies that invest in and finance mortgages, providing a steady stream of income for investors. The VanEck Mortgage REIT Income ETF allows investors to gain exposure to this asset class.

The fund's holdings include companies such as Annaly Capital Management, Inc. and AGNC Investment Corp., which are two of the largest mortgage REITs in the US. These companies have a proven track record of generating income for shareholders.

Investors in the VanEck Mortgage REIT Income ETF can expect to receive a quarterly distribution, which is a key benefit of investing in this type of fund. The distribution is made up of interest income and dividends from the underlying mortgage REITs.

The VanEck Mortgage REIT Income ETF has a relatively low expense ratio compared to other ETFs in the market, making it an attractive option for investors. This low cost structure can help investors keep more of their returns.

The VanEck Mortgage REIT Income ETF has a relatively low expense ratio of 0.43%, which is lower than many of its peers in the Real Estate category. This is a key factor to consider when evaluating the fund's overall performance and value.

The ETF's management fee is also competitive, standing at 0.40% of assets under management (AUM). This is lower than the category average and can help to maximize returns over time.

Here's a breakdown of the fund's operational fees:

The fund's portfolio turnover rate is 16%, which is lower than the average for the Real Estate category, indicating that it holds its assets for a relatively long period of time.

The fundamental charts provide valuable insights into a company's financial health and growth prospects. Market Cap stands at $312.477 million.

The number of shares outstanding is substantial at 27.15 million. This can have a significant impact on the company's stock price and overall market influence.

A PE ratio of 12.79 indicates the company's stock price is currently trading at 12.79 times its earnings per share. This is an important metric for investors to consider when evaluating the company's value.

Over the past decade, the PE ratio has ranged from 4.4 to 14.9, with a median of 10.83. This suggests that the company's stock price has fluctuated significantly over time.

The PB ratio, which measures the company's stock price relative to its book value, is 0.74. This is lower than the 10-year median of 0.96, indicating that the company's stock price may be undervalued.

Here is a summary of the key fundamental metrics:

The TTM P/E for MORT is 13.4, which is slightly higher than the industry average.

MORT's price-to-earnings ratio over the past 12 months is a key metric to consider when evaluating its performance.

This ratio is calculated by dividing the stock's current price by its earnings per share over the same period.

The industry average for the same period is 12.8, indicating that MORT's stock is trading at a premium.

High portfolio turnover can lead to higher expenses and lower after-tax returns. VanEck Mortgage REIT Income ETF has a portfolio turnover rate of 16%, which is lower than the average of 35% for the Real Estate category.

The ETF's expense ratio is 0.43%, which is within the expected range of 0.07% to 8.91% for the category. Management fees are also a consideration, with VanEck Mortgage REIT Income ETF charging 0.40% of assets under management (AUM).

A portfolio turnover rate of 16% indicates that the ETF holds its assets for around 0.1 years. In December 2024, the ETF returned -4.1%, earning it a grade of A in the Real Estate category, where the average return was -6.9%.

Here's a breakdown of the ETF's fees:

Mortgage REITs are surging in July, after a terrible start to the year. They're hot, and it's clear that some companies are missing out on this rally.

ORC, in particular, seems to have missed most of the rally. It's worth noting that they're good at destroying book value.

This rally in mortgage REITs is a significant shift from earlier in the year, when they were struggling.

The VanEck Mortgage REIT Income ETF has underperformed the S&P 500 both in 2024 and on a three-year timeframe. This is largely due to the 2022 downturn, which significantly impacted the fund's performance.

MORT has over 99% exposure to US mortgage REITs, making it a levered bet on US rates having peaked. This concentration can amplify both gains and losses.

Mortgage REITs as a whole are risky. They have underperformed equity REITs in the long run.

The VanEck Mortgage REIT Income ETF, MORT, has a concerning track record. It has underperformed the S&P 500 both in 2024 and on a three-year timeframe.

Mortgage REITs lure investors with their high dividend yields, but these yields come with significant risks. Over time, mREITs have earned very poor returns for their shareholders.

The high yields of mortgage REITs are a major red flag. They have a tendency to attract investors who are not aware of the associated risks.

Mortgage REITs have a history of poor performance. They have underperformed equity REITs in the long run, making them a less desirable investment option.

Cyclical Rates Driven investments can be a bit tricky to understand, but let's break it down. The VanEck Mortgage REIT Income ETF, or MORT, is a good example of this type of investment.

This ETF offers a high yield of 10.4%, which is a significant return on investment. However, it's essential to understand that MORT's performance is driven by cyclical rates, meaning it's influenced by changes in interest rates.

The ETF's composition is also worth noting, as it includes a mix of Agency MBS REITs and real estate investment trusts. This diversification can help reduce risk, but it's still a cyclical investment, so be prepared for fluctuations.

The VanEck Mortgage REIT Income ETF offers a compelling dividend strategy.

The fund's dividend yield is a notable 10.65%, making it an attractive option for income-seeking investors.

Dividend payments are made quarterly, providing regular income to shareholders.

The dividend yield has fluctuated over the past decade, ranging from 6.38% to 24.81%.

The median dividend yield over the past decade is 9.52%.

Here are some key dividend metrics for the VanEck Mortgage REIT Income ETF:

Note that the fund's dividend yield is significantly higher than the market average, making it an attractive option for income-seeking investors.

The VanEck Mortgage REIT Income ETF has a diverse portfolio, with top holdings including Annaly Capital Management Inc, AGNC Investment Corp, and Starwood Property Trust Inc.

These top holdings make up a significant portion of the portfolio, with Annaly Capital Management Inc holding a 12.40% stake.

The ETF's holdings are constantly being adjusted, with some securities being added and others being reduced. As of 2024-10-31, the following securities were added: AGNC Investment Corp, Annaly Capital Management Inc, Starwood Property Trust Inc, Rithm Capital Corp, Orchid Island Capital Inc, and KKR Real Estate Finance Trust Inc.

The holdings are also valued based on their market price, with the current prices ranging from $8.92 to $21.63.

Here's a breakdown of the top holdings as of 2024-10-31:

The holdings heat map shows the percentage of the total portfolio held by each security, as well as the market capitalization of each security.

The VanEck Mortgage REIT Income ETF has a relatively short history, with the current manager, Driscoll Griffin, taking over in 2023.

The fund's performance has been inconsistent, earning a grade of F over the past year, three years, five years, and 10 years. Over the past year, it has returned 0.2%, which is 5.0 percentage points worse than the category.

The fund's performance has also been volatile, with a standard deviation of 29.9% and a beta of 1.61, indicating that it tends to be more volatile than the overall market.

VanEck ETF Trust is the company behind the VanEck Mortgage REIT Income ETF. It's a well-established player in the market, having been launched and managed by Van Eck Associates Corporation since 2011.

The fund invests in the public equity markets of the United States, focusing on stocks of companies operating in the mortgage real estate investment trusts (REITs), financials, financial services, and mortgage REITs sectors.

It uses a full replication technique to track the performance of the MVIS US Mortgage REITs Index, which is a reliable benchmark for the sector.

The fund was formed on August 16, 2011, and is domiciled in the United States, giving it a strong foundation and regulatory framework.

The Grades of VanEck Mortgage REIT Income ETF are quite disappointing. The fund has returned 0.2% over the past year, earning an F grade.

The ETF has consistently performed poorly over the past three years, with a return of -5.6%, also earning an F grade. This trend continues over the past five years, with a return of -5.3% and an F grade.

The fund's performance is significantly worse than the category average, with a difference of 5.0 percentage points over the past year. This is reflected in the fund's grade of F.

The ETF's performance varies over different time periods, but it always earns an F grade. This is a red flag for investors considering this fund.

Here's a summary of the fund's grades over different time periods:

It's worth noting that the fund's grades are not just based on its performance, but also on how it compares to the category average. In all cases, the ETF's performance is significantly worse than the category average, earning it an F grade.