Analysis: High-Yield REIT ETF (REM) has a 'big catch' with 9% 5-year price loss; recommends Realty Income (O), VICI Properties (VICI), and W. P. Carey (WPC) as alternatives
The iShares Mortgage Real Estate ETF (REM) offers a 9% yield but has seen a 9% price loss over five years, with its net asset value shrinking due to its focus on levered mortgage spreads rather than physical buildings. The analysis suggests investors consider equity net-lease REITs like Realty Income (O), VICI Properties (VICI), and W. P. Carey (WPC), which have delivered positive price returns over the same period, offering better durability and income growth backed by actual real estate and contractual rent escalators.
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