LIVE
REM
iShares Mortgage Real Estate ETF · ETF / Mortgage REITs
$21.45
+2.23% this month
VERSUS
⟷
COMPARE
VNQ
Vanguard Real Estate ETF · ETF / Equity REITs
$95.56
+0.29% this month
Scoreboard verdict
Across expense ratio, momentum, yield, fund size, risk
REM
2
VNQ
3
Comparison scoreboard
VNQ LEADS 3/5Exp. Ratio
REM 0.48%
VNQ ✓0.13%
1Y Return
REM ✓+11.55%
VNQ +10.54%
Div. Yield
REM ✓8.96%
VNQ 3.64%
AUM
REM $556.5M
VNQ ✓$69.8B
Beta
REM 1.25
VNQ ✓1.00
Metrics last refreshed: 6/20/2026
Quick take
REM vs VNQ Stock Comparison: AI Score, Valuation, Performance and Upside
REM and VNQ serve very different income investor needs. REM's mortgage REITs use leverage on mortgage securities for 8-12%+ yields but with extreme rate sensitivity and frequent dividend cuts. VNQ's equity REITs own physical properties for 3-4% income with more stable dividends and long-term appreciation. REM is a maximum income vehicle with significant principal risk; VNQ is a more complete real estate market exposure with more stable income and total return potential.
REM vs VNQ — REM (the mortgage REIT ETF with Annaly, AGNC, and other mREITs providing 8-12%+ dividend yields from interest rate spread investing) versus VNQ (the equity REIT ETF with 170+ property-owning REITs across warehouse, cell tower, data center, and residential properties providing 3-4% income and real asset appreciation).
Live analysis · updated 6/20/2026
VNQ holds the edge across 3 of 5 key metrics in this comparison. REM has delivered stronger 1-year price return (+11.55% vs +10.54% for VNQ).
Normalized 1Y performance
REM
VNQ
Recent returns
REM
VNQ
Who should consider this stock?
REM may suit investors who:
- →prioritize maximum current income and are comfortable with principal volatility and dividend cut risk during rate cycles
- →believe the yield curve will steepen (long rates exceeding short rates) — widening mREIT spreads and improving REM dividend sustainability
- →use REM as a tactical income vehicle in favorable rate environments rather than a long-term core holding
- →understand that 8-12% yields imply significant risk — mREIT book value erosion and dividend cuts in rising rate environments are expected outcomes
VNQ may suit investors who:
- →want diversified US real estate exposure across property types — warehouses, towers, data centers, apartments, and commercial real estate in one ETF
- →value real asset backing from physical property ownership providing inflation hedge and long-term appreciation beyond just income
- →prefer 3-4% stable dividend income over REM's 8-12% higher-risk income — lower yield but more reliable dividend track record across rate cycles
- →are comfortable with equity REIT interest rate sensitivity, office property headwinds from remote work, and general real estate cycle exposure
Performance & AI score
| Metric | REM | VNQ |
|---|---|---|
| ETF score | 19.0 | 52.0 |
| Latest close | $21.45 | $95.56 |
| 1M return | +2.23% | +0.29% |
| 6M return | +0.39% | +9.02% |
| 1Y return | +11.55% | +10.54% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | REM | VNQ |
|---|---|---|
| 1Y ago | $12.21K (+22.1%) started 2025-06-18 | $11.5K (+15.0%) started 2025-06-18 |
| 5Y ago | $15.73K (+57.3%) started 2021-06-18 | $13.99K (+39.9%) started 2021-06-18 |
| 10Y ago | $58.7K (+487.0%) started 2016-06-20 | $26.84K (+168.4%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Fund characteristics
| Metric | REM | VNQ |
|---|---|---|
| Expense ratio | 0.48% | 0.13% |
| Total assets (AUM) | $556.5M | $69.8B |
| Dividend yield | 8.96% | 3.64% |
| Trailing P/E | 8.90 | 30.54 |
| Beta | 1.25 | 1.00 |
| 52-week change | 11.55% | 10.54% |
Risk & fund metrics
| Metric | REM | VNQ |
|---|---|---|
| 1Y return | +11.55% | +10.54% |
| 6M return | +0.39% | +9.02% |
| 1M return | +2.23% | +0.29% |
| 1Y Sharpe ratio | 0.47 | 0.47 |
| Beta | 1.25 | 1.00 |
| Dividend yield | 8.96% | 3.64% |
| 5Y CAGR | -1.82% | +2.58% |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
REM max drawdown14.25%
VNQ max drawdown8.34%
REM max wkly drop4.52%
VNQ max wkly drop4.81%
5Y risk snapshot
REM max drawdown43.31%
VNQ max drawdown34.48%
REM max wkly drop18.34%
VNQ max wkly drop12.07%
10Y risk snapshot
REM max drawdown68.52%
VNQ max drawdown42.40%
REM max wkly drop47.82%
VNQ max wkly drop24.91%
Performance metrics by period
| Period | Metric | REM | VNQ |
|---|---|---|---|
| 1Y | Growth | +11.55% | +10.54% |
| CAGR | +11.55% | +10.54% | |
| Sharpe ratio | 0.47 | 0.47 | |
| Max drawdown | 14.25% | 8.34% | |
| Max daily drop | 4.53% | 3.10% | |
| Max wkly drop | 4.52% | 4.81% | |
| 5Y | Growth | -8.79% | +13.58% |
| CAGR | -1.82% | +2.58% | |
| Sharpe ratio | -0.15 | -0.01 | |
| Max drawdown | 43.31% | 34.48% | |
| Max daily drop | 9.32% | 5.00% | |
| Max wkly drop | 18.34% | 12.07% | |
| 10Y | Growth | +31.43% | +65.68% |
| CAGR | +2.77% | +5.18% | |
| Sharpe ratio | 0.08 | 0.13 | |
| Max drawdown | 68.52% | 42.40% | |
| Max daily drop | 23.31% | 17.73% | |
| Max wkly drop | 47.82% | 24.91% |
Fund overview
| Category | REM | VNQ |
|---|---|---|
| Fund name | iShares Mortgage Real Estate Capped ETF | Vanguard Real Estate Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratio | 0.48% | 0.13% |
| Total assets (AUM) | $556.5M | $69.8B |
| Dividend yield | 8.96% | 3.64% |
REM strengths
- →Very high dividend yield (8-12%+): REM offers income multiples above traditional equity REITs or bond funds — attractive for maximum income generation
- →Short-term rate spread exposure: when the yield curve steepens (long rates > short rates), mortgage REIT spreads widen and earnings increase — REM benefits from yield curve normalization
- →Agency MBS safety: top mREIT holdings (Annaly, AGNC) primarily own agency-backed MBS with government credit guarantees — credit risk is lower than yield would imply
VNQ strengths
- →Diversified equity REIT exposure across property types: warehouses, cell towers, data centers, self-storage, apartments, offices, healthcare, and malls — full US real estate sector in one ETF
- →Real asset backing: VNQ's REITs own physical properties — the underlying real assets provide inflation protection and long-term value appreciation
- →More stable income than REM: equity REIT dividends are backed by rental income streams — less volatile than mortgage REIT dividends tied to interest rate spreads
Risks to watch — REM
- →Extreme interest rate sensitivity: rising short-term rates compress mREIT spreads — the 2022 Fed rate hike cycle was devastating for mREITs, with REM falling 30%+
- →Book value erosion risk: when rates rise rapidly, MBS values fall, eroding mREIT book values and leading to dividend cuts
- →Dividend cuts are common: mREITs frequently cut dividends during rate cycles — high headline yield often masks dividend reduction risk
Risks to watch — VNQ
- →Interest rate sensitivity: equity REITs borrow extensively for property acquisition — rising rates increase borrowing costs and make REIT yields less attractive vs Treasuries
- →Office REIT exposure: post-COVID remote work trends have impaired office property values — VNQ's office REIT holdings face secular headwinds from reduced office space demand
- →Lower yield than REM: VNQ's 3-4% yield is significantly below REM's 8-12% — investors seeking maximum income must accept VNQ's lower yield vs REM's higher-risk income
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