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Many people have asked me for a list of mortgage REIT ETFs. They love the great dividends of mortgage REIT companies, but they don't want to have to try to evaluate the complex financials of these companies. The list below, with some recent performance data is an attempt to answer that question.

Two of the top performing mortgage REIT ETFs in 2013 are:

1) Market Vectors Mortgage REIT Income Fund (MORT). The price of this ETF has appreciated +13.75% year to date. Its trailing twelve month yield is 9.76%. Some of its top holdings with their weightings in the fund are:

Name of Stock

Weight In ETF

Annaly Capital (NLY)

16.25%

American Capital Agency (AGNC)

13.70%

Chimera Investment

5.20%

Two Harbors Investment (TWO)

5.18%

Starwood Property Trust (STWD)

4.91%

MFA Financial (MFA)

4.86%

Invesco Mortgage Capital(IVR)

4.68%

Hatteras Financial (HTS)

4.63%

Newcastle Investment (NCT)

4.19%

Cypress Sharpridge Investments (CYS)

4.17%

Armour Residential REIT (ARR)

4.16%

Northstar Realty Finance (NRF)

3.85%

Redwood Trust (RWT)

3.70%

American Capital Mortgage (MTGE)

3.05%

2) iShares FTSE NAREIT Mortgage REITs Index Fund (REM). The price of this ETF has appreciated +9.72% year to date. Its trailing twelve month yield is 11.31%. Some of its top holdings with their weighting in the fund are:

Name of Stock

Weight in ETF

Annaly Capital

21.74%

American Capital Agency

17.39%

Starwood Property Trust

5.27%

Chimera Investment (CIM)

4.64%

Two Harbors Investment

4.59%

MFA Financial

4.43%

Invesco Mortgage Capital

4.19%

Hatteras Financial

3.96%

Newcastle Investment

3.79%

Armour Residential REIT

3.39%

Cypress Sharpridge Investments

2.91%

Northstar Realty Finance

2.53%

Pennymac Mortgage Investment Trust (PMT)

2.20%

Redwood Trust

2.17%

American Capital Mortgage

2.02%

Both of these funds have heavy weightings of Annaly (NLY) and American Capital Agency (AGNC). With slightly different weightings the funds contain almost identical lists of stocks in almost exactly the same priority. In my mind, this is a disadvantage of these funds. For instance, NLY has underperformed many of its peers in the mortgage REIT industry in 2013. Yet it has remained the top holding in both ETFs due to its size and history.

Two mort mortgage REIT ETFs with a bit lower performance in 2013 are:

3) PowerShares KBW Prem Yield Equity REIT (KBWY). The price of this ETF has appreciated +12.88% year to date. Its trailing twelve month yield is 4.55%. Some of its top holdings with their weighting in the fund are:

Name of Stock

Weight in ETF

Epr Properties (EPR)

3.81%

Omega Healthcare Invest mentors (OHI)

3.79%

Senior Housing Properties Trust (SNH)

3.65%

One Liberty Properties (OLP)

3.64%

Mack-cali Realty (CLI)

3.62%

Government Properties Income Trust (GOV)

3.52%

Inland Real Estate (IRC)

3.34%

Medical Properties Trust (MPW)

3.24%

Sun Communities Inc. REIT (SUI)

3.16%

Stag Industrial (STAG)

3.12%

Agree Realty (ADC)

3.10%

Chatham Lodging Trust (CLDT)

3.09%

Excel Trust (EXL)

3.07%

Lexington Realty Trust (LXP)

2.95%

Winthrop Realty Trust (FUR)

2.91%

4) IQ U.S. Real Estate Small Cap ETF (ROOF). The price of this ETF has appreciated +13.33% year to date. Its trailing twelve month yield is 3.86%. Some of its top holdings with their weighting in the fund are:

Name of Stock

Weight in ETF

Invesco Mortgage Capital

5.11%

Newcastle Investment

5.02%

Armour Residential REIT

4.61%

CommonWealth REIT (CWH)

3.92%

Brandywine Realty Trust Common (BDN)

3.66%

Medical Properties Trust

3.65%

DCT Industrial Trust Inc. common (DCT)

3.62%

Sunstone Hotel Investors Inc. (SHO)

3.34%

CubeSmart Common Shares (CUBE)

3.25%

Lexington Realty Trust Common S

3.23%

These latter two funds are much more diversified. They include a large amount of business properties as well as companies that invest primarily in residential real estate. The first two ETFs are generally made up of bigger more robust companies. NLY and AGNC are both large cap companies; and they both have huge weightings in each of the first two funds.

I haven't included any charts for these ETFs. That is because all of the charts indicate a firm uptrend in 2013. In one sense, this indicates strength in the industry. Plus the Fed is strongly supporting the US real estate industry. However, investors should be aware that the overall market has also trended upward for all of 2013. The SPDR S&P500 ETF (SPY) is up 6.94% year to date; and it has a trailing twelve month yield of 2.04%. When the SPY reverses, one might expect to see a reversal in the above ETFs too. I hope the above information is helpful to investors.

There are many other mortgage REIT ETFs, but their performances so far this year have been much worse. The above four are the mortgage REIT ETFs that many investors will want to look hardest at.

NOTE: Some of the above fundamental financial data is from yahoo Finance.

Source: These High-Yielding Mortgage REIT ETFs Can Simplify Your Investing