Residential Mortgage REITs

In the Hoya Capital Residential Mortgage REIT Index, we track the 21 exchange-listed residential mREITs, a sector that is comprised primarily of small and micro-cap REITs which pay dividend yields in the mid-to-high teens.

Not unlike a traditional mortgage bank, Residential mREITs purchase and originate residential mortgages and mortgage-backed securities ("MBS"), and use leverage to enhance the investment spread between the effective lending rate and their cost of capital.