UBS continued to expand its suite of income-oriented products this week by debuting an ETN that will offer monthly leveraged exposure to an index consisting of mortgage REITs. The new ETRACS Monthly Pay 2x Leveraged Mortgage REIT ETN (MORL) will offer 2x monthly exposure to the Market Vectors Global Mortgage REITs Index, a benchmark that includes companies such as Annaly Capital Management and American Capital Agency. That same benchmark is already linked to a Van Eck product, MORT, which offers non-leveraged exposure in an ETF wrapper. 25% Yield: Too Good To Be True? Mortgage REITs have seen considerable interest in recent years, in large part because of the substantial yields they can offer. These companies provide real estate financing by issuing mortgages or purchasing mortgage-backed securities–often by using leverage in their day-to-day operations. In order to qualify as a REIT (and therefore for certain tax advantages) these entities must distribute at [...] Click here to read the original article on ETFdb.com. Related Posts: Leveraged Dividend ETFs: Too Good To Be True? UBS Launches Leveraged Real Estate ETN (RWXL) 7 ETFs Yielding 7% Or More May ETF Roundup: Launches, Filings, and Closures ETF Insider: Is Spain The New Greece?
UBS continued to expand its suite of income-oriented products this week by debuting an ETN that will offer monthly leveraged exposure to an index consisting of mortgage REITs. The new ETRACS Monthly Pay 2x Leveraged Mortgage REIT ETN (MORL) will offer 2x monthly exposure to the Market Vectors Global Mortgage REITs Index, a benchmark that includes companies such as Annaly Capital Management and American Capital Agency. That same benchmark is already linked to a Van Eck product, MORT, which offers non-leveraged exposure in an ETF wrapper. 25% Yield: Too Good To Be True? Mortgage REITs have seen considerable interest in recent years, in large part because of the substantial yields they can offer. These companies provide real estate financing by issuing mortgages or purchasing mortgage-backed securities–often by using leverage in their day-to-day operations. In order to qualify as a REIT (and therefore for certain tax advantages) these entities must distribute at [...]
Click here to read the original article on ETFdb.com.
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