VanEck Mortgage REIT Income ETF

MORT

Market cap $319M

BDCs have typically dominated. Mortgage REITs are back and out for dividends. Or something like that. As BDCs plunged, mortgage REITs gained favor with high-yield investors, at least on a relative basis. Declining borrowing costs make investors more excited about the sector, but mortgage REITs prefer stability.

Mortgage REITs (mREITs) offer high dividend yields. That makes them very popular among individual investors. Even then, we stay far away from them. Here is why.

MORT is rated a buy due to its superior yield, historical performance, and lower expense ratio versus REM, rated a hold. MORT offers a higher, sustainable dividend yield (11.67%) and better diversification across holdings, making it attractive for income-focused investors. Favorable rate cut projections and declining mortgage rates create a strong tailwind for mortgage REITs, supporting both income and capital appreciation potential.

U.S. equity markets notched another series of record highs this week, surging into the weekend after surprisingly dovish commentary from Federal Reserve Chair Powell, who hinted at imminent rate cuts. Powell used his final Jackson Hole speech as Fed Chair to deliver a clear policy pivot, an unexpected reversal after months of insistence that tariff-related inflation warranted a hawkish framework. Markets were equally relieved by the policy-focused nature of Powell's speech amid speculation that the address may be used instead as a potential defiant sermon on central bank independence.

Ellington Credit: High Yield, Speculative CLO Fund

U.S. equity markets fell sharply this week, while benchmark interest rates retreated to three-month lows, after revised employment data showed that job growth was far weaker than initially reported. The BLS payrolls report showed softer-than-expected hiring in July and the steepest two-month downward revisions to jobs growth since 2020, raising concern that the Fed may be "behind the curve." The downward revisions came days after Fed Chair Powell used it as the primary evidence for "solid" labor markets, which justified the FOMC's decision to keep rates in "restrictive" territory.

The Amplify CWP Enhanced Dividend Income ETF, for example, invests in large-cap companies with a strong history of dividend growth.

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