(REM) iShares Mortgage Real - Ratings and Ratios

The iShares Mortgage Real Estate Capped ETF (REM) is a targeted real estate investment fund designed to provide exposure to the mortgage real estate sector. The fund typically allocates at least 80% of its assets to securities included in its underlying index, which tracks the performance of companies engaged in the mortgage real estate business. This includes mortgage real estate investment trusts (REITs) and other financial institutions involved in residential and commercial mortgages. The remaining 20% of its assets may be invested in derivatives such as futures, options, and swap contracts, as well as cash and cash equivalents, to manage risk or enhance returns. As a non-diversified fund, it can concentrate its holdings in a smaller number of securities, which may increase its potential for higher returns but also raises its risk profile.

From a technical perspective, REM has shown moderate price movement recently. The funds average volume over the past 20 days is 622,599 shares, indicating consistent trading activity. Its last price of $23.40 is slightly above its 20-day simple moving average (SMA) of $22.96, suggesting short-term upward momentum. However, it remains below its 50-day SMA of $22.12 and 200-day SMA of $21.88, which could signal a longer-term consolidation phase. The average true range (ATR) of 0.32 reflects relatively low volatility, making it a less risky option for investors seeking stability in the real estate sector.

Fundamentally, REM manages an asset base of $624.18 million, demonstrating its popularity among investors seeking exposure to the mortgage real estate market. This scale allows for efficient portfolio management and diversification within its target sector. The funds focus on mortgage REITs and related financial institutions provides indirect exposure to the housing market, making it sensitive to interest rate changes and real estate market trends.

Looking ahead, REM is expected to maintain its current trajectory over the next three months. The funds short-term technical indicators suggest modest growth, with potential resistance near $24.00 and support around $22.50. Its low ATR of 0.32 indicates that price fluctuations are likely to remain manageable, appealing to risk-averse investors. From a fundamental perspective, the performance of the U.S. housing market and interest rate movements will be key drivers. If mortgage rates remain stable or decline, REM could see increased demand, leading to potential capital appreciation. Conversely, any significant rise in interest rates could weigh on the funds performance, as higher borrowing costs typically reduce the attractiveness of mortgage-backed securities.

For more information, visit http://www.ishares.com.