""Van Eck Global"":http://www.vaneck.com/Home.aspx is enhancing its product offerings, recently debuting its Market Vectors Mortgage REIT Income exchange-traded fund, dubbed MORT in company lingo. The new program will give users ""pure play"" exposure to the REIT marketplace.[IMAGE]
MORT will facilitate pre-fee performance tracking of Market Vectors Global Mortgage REITs Index (MVMORTTR), which is a capitalization-weighted index requiring collaborating companies to gain at least 50 percent of revenues from mortgage REITs.
Boasting more than 25 constituent organizations, MVMORTTR includes companies and trusts that engage in the purchasing and servicing of commercial or residential mortgage loans or mortgage-related securities. The index excludes mortgage finance companies and savings associations.[COLUMN_BREAK]
Van Eck based its new offering on the growing opportunity for mortgage REITs in the U.S., resulting from ongoing finance reform.
However, the company readily notes the inherent risks in REIT investments, such as credit, leverage, and prepayment risk.
MORT will carry a gross expense ratio of 0.54 percent and a net expense ratio of 0.4 percent, capping expenses at 0.4 percent until May1, 2013.
The fund, which taps into income generated by short-term funding for high-yield, long-term mortgage securities made available through mortgage REITs, anticipates making quarterly distributions for shareholders.
""Yields from mortgage REITs have been higher in recent years than those provided by equity REITs and a number of other income-oriented products,"" said Jan van Eck, Principal at Van Eck Global.
""We're pleased to bring out MORT, an ETF which we think could be a valuable portfolio building tool for yield-focused investors in this low-yield environment,"" he added.
MORT represents Van Eck's 36th Market Vectors ETF, and the New York-based company remains committed to assisting U.S. money managers seeking to service investors via diversification in global markets.