VanEck Mortgage REIT Income ETF

MORT

Market cap $386M

High-yielding investments often lure retirees in with the promise of providing massive passive income. However, these are often some of the worst possible investments they could make. I share 3 very popular high-yield investments right now that I believe will inflict financial pain on those who bet heavily on them in the future.

The VanEck Mortgage REIT Income ETF receives a sell rating due to structural risks undermining its high dividend yield. MORT's top holdings — NLY, AGNC, and STWD — face thin margins, high leverage, and unsustainable payout ratios, increasing dividend cut risk. Persistently high interest rates compress net interest margins and threaten both profitability and dividend sustainability for MORT's constituents.

Surging oil prices and hotter inflation reports reignited rate-hike concerns, sending Treasury yields to one-year highs as the Iran conflict remained stalemated despite the highly anticipated Trump-Xi summit.

More than 1,500 stocks have reported earnings since the current season began in mid-April, and the average stock that has reported has seen an average absolute one-day share price reaction of roughly 7%. The last time we saw earnings vol spike was during the Financial Crisis bear market, when stocks were tanking. This time around, we're seeing earnings vol increase during a strong AI-driven bull market. Tech stocks are seeing record earnings day volatility as investors and traders presumably make snap judgements about AI's future impact on the bottom line.

These shares offer big yields but far more stability than investors expect. Recent market downturns enabled attractive entry points for big yields with capital gains. It's best to prepare for these opportunities in advance. Because we were already evaluating these shares regularly, we were able to jump on opportunities during the big dip.

U.S. equity markets advanced for a fifth straight week - their longest winning streak since 2024 - as strong earnings, resilient data, and hopes for lasting Iran peace fueled optimism. Investors looked through another oil-price surge and inflationary pressure, focusing instead on corporate resilience and economic strength despite a complex macro backdrop shaped by geopolitical and policy uncertainty. The Fed held rates steady in an unusually fractured 8-4 vote, while Powell's plan to remain on the Board broke precedent and raised politically charged succession questions.

VanEck Mortgage REIT Income ETF (NYSEARCA:MORT) declared a ~6% dividend hike on March 31, 2026, pushing its trailing yield to a level that catches the attention of income-oriented investors across the market.

Social Security pays retirees $2,000 a month on average, and private tuitions are even lower than that.

With the federal funds rate sitting at 3.75% and the 10-year Treasury yielding 4.13%, investors hunting for meaningful income have to venture well beyond government bonds.

The VanEck Mortgage REIT Income ETF has given up early 2026 gains as market pricing shifts toward fewer Fed rate cuts this year. I highlight key differences between money supply growth in the periods leading up to 2022 and 2026, making a rerun of 2022 somewhat unlikely even if war in Iran continues. MORT's recent dividend growth reflects benefits of 2024-2025 Fed rate cuts, with modest future dividend growth expected even if the Fed goes ahead with rate cuts.