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REM: Improving Fundamentals, But Caution Signs Remain (Upgrade)

I upgrade iShares Mortgage Real Estate ETF to Hold, reflecting improved fundamentals in top holdings despite persistent risk factors. REM's leading positions in NLY, AGNC, and STWD show reduced leverage, better net interest margins, and greater portfolio diversification. REM's 8.9% dividend yield appears sustainable in the near term but remains vulnerable to interest rate volatility and leverage-driven risks.

Seeking Alpha • Sep 8, 2026

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