REM Profile
The iShares Mortgage Real Estate Capped ETF focuses on providing investors with exposure to the U.S. mortgage real estate sector. Under normal market conditions, the fund invests at least 80% of its total assets in the securities that make up its underlying index. This includes investments with economic characteristics similar to those of the index components, ensuring that the fund closely mirrors the index's performance.
The underlying index tracks the performance of the U.S. equity market's mortgage real estate, mortgage finance, and savings associations sectors. This encompasses a diverse range of companies involved in residential and commercial mortgage activities. The index is designed to capture the returns of firms that operate within these key areas, providing a comprehensive view of the mortgage and real estate finance landscape.
The ETF offers targeted exposure to this specialized sector by investing in real estate investment trusts (REITs), mortgage-backed securities, and other related financial instruments. By focusing on mortgage and real estate finance companies, the fund aims to deliver returns that reflect the dynamics of these specific market segments, appealing to investors seeking to capitalize on trends within the real estate and mortgage sectors.
As a non-diversified fund, the iShares Mortgage Real Estate Capped ETF's investment strategy is concentrated in a specific sector of the equity market. This focus allows the fund to provide precise exposure to the mortgage real estate industry, aligning its performance closely with the movements of the underlying index. Investors interested in sector-specific investments may find this ETF an effective tool for gaining targeted exposure to the mortgage and real estate finance markets.
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