This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Van Eck Introduces Market Vectors® Mortgage REIT Income ETF (MORT)

New York-based asset manager Van Eck Global announced today that it has launched Market Vectors Mortgage REIT Income ETF (NYSE Arca: MORT), an exchange-traded fund (ETF) offering pure play exposure to the mortgage REIT marketplace.

“Yields from mortgage REITs have been higher in recent years than those provided by equity REITs and a number of other income-oriented products,” said Jan van Eck, Principal at Van Eck Global. “We’re pleased to bring out MORT, an ETF which we think could be a valuable portfolio building tool for yield-focused investors in this low-yield environment.”

MORT is intended to track, before fees and expenses, the performance of the Market Vectors Global Mortgage REITs Index (ticker: MVMORTTR), a capitalization-weighted index that requires constituent companies to derive at least 50 percent of their revenues from mortgage REITs. This includes companies and trusts which are primarily engaged in the purchase or service of commercial or residential mortgage loans or mortgage-related securities.

The Index had 25 constituents as of July 31, 2011, all of which were REITs focused on residential mortgages, commercial mortgages or a mix of both. Unlike other indexes used in mortgage REIT-focused ETFs, the Index does not include mortgage finance companies or savings associations.

Additionally, ongoing mortgage finance reform may present a compelling opportunity for mortgage REITs. If U.S. government continues to wind down its role in the mortgage market, private financing sources, such as mortgage REITs may play a more pivotal role in the industry.

Van Eck Global also notes that mortgage REITs are not without their risks, which can include credit risk, leverage risk and prepayment risk, among others. Mortgage REITs generate income by accessing short-term funding to invest in higher-yielding, long-term mortgage securities and thus are also subject to risks from rising interest rates, since when the spread between short-term and long-term interest rates decreases, the value of a mortgage REITs may decline.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs