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How To Buy A Bundle Of Mortgage REITs

January 10, 2012 – Comments (0) | RELATED TICKERS: NLY , HTS , AGNC

Investors seeking high yield with a little more risk than bonds tend to invest in REITs. The higher yield is a tradeoff for being exposed to more financial risk. As yield has come down through 2011, investors have migrated to the highest yield REITs such as specialty finance and mortgage REITs. These REITs tend to be small capitalization stocks that are interest rate-sensitive. While the Fed has basically declared no rate changes until probably 2013, these stocks should hold up well in 2012. Since they carry more risk, it makes sense to look to purchase a bundle of these REITs in an ETF.

See article on high yield Mortgage REITs.