iShares Trust Mortgage Price, Forecast, Insider, Ratings, Fundamentals & Signals

Hello! This is MarketWatch reporter Isabel Wang bringing you this week's ETF Wrap. After a decade of seemingly never-ending fee-cutting wars, ETF issuers raised their fees in 2023 as the landscape evolved beyond cheap index-tracking funds.

The iShares Mortgage Real Estate ETF is a sell for investors seeking dependable income over time. The fund has generated lower total returns compared to the market, and its dividends have declined significantly over the past decade. The fund lacks diversification, with a majority of its portfolio concentrated in just ten companies, some of which have experienced declining dividends.

The former bond king doesn't like the fixed-income security that's the lynchpin of the financial world.

U.S. equity markets extended their winning streak to an eighth week - the longest in five years - after inflation data both domestically and abroad showed a further cooling of price pressures. Extending its weekly winning streak to the longest since 2017, the S&P 500 posted gains of another 0.9% on the week, lifting the benchmark to within 1% of record highs. Pushing their eight-week rebound to over 25%, the Equity REIT Index gained 0.6% this week, with 9-of-18 property sectors in positive territory, while the Mortgage REIT Index gained 1.3%.

Early Friday futures suggest stocks will start December on a cautious note. The last month of the year tends to be positive for Wall Street, though it will be some feat if it can beat November's 8.9% jump for the S&P 500 SPX.

Investing directly in real estate properties requires a large amount of capital and many other resources that most average investors cannot access. But, for investors looking to gain exposure to the real estate market and the many benefits of real estate investing, REITs (real estate investment trusts) are the way to go.

Stock prices and returns are in part determined by net cash on the balance sheet and future expectations of free cash flow. Dividends are not a driver of valuation and actually decrease the value of a company because cash is paid out to investors. Over the past decade, dividend-paying stocks have underperformed compared to "growth" stocks with strong free cash flow generation and balance sheets.

Housing market may face trouble due to high mortgage rates and a potential recession, making iShares Mortgage Real Estate Capped ETF a risky investment. The REM ETF offers high dividend yield, exposure to U.S. real estate sectors, and strong liquidity, making it attractive for income-focused investors. However, REM's portfolio mainly consists of high-risk mortgage REITs, is sensitive to interest rate fluctuations, and has concentration risk.

Hello! This week's ETF Wrap digs into where investors put their money in October, and how November is shaping up in markets after the Federal Reserve's decision on interest rates.

With high interest rates and the increased probability of the Fed remaining hawkish for longer, look into how mREITS ETFs are affected after Q3 earnings results.