The new exchange-traded fund (ETF) offers pure play exposure to the mortgage REIT marketplace. MORT is intended to track, before fees and expenses, the performance of the Market Vectors Global Mortgage REITs Index, a capitalization-weighted index that requires constituent companies to derive at least 50% of their revenues from mortgage REITs. This includes companies and trusts, which are primarily engaged in the purchase or service of commercial or residential mortgage loans or mortgage-related securities.
The Index had 25 constituents as of July 31, 2011, all of which were REITs focused on residential mortgages, commercial mortgages, or a mix of both. Unlike other indexes used in mortgage REIT-focused ETFs, the Index does not include mortgage finance companies or savings associations, the company said.
MORT carries a gross expense ratio of 0.54% and a net expense ratio of 0.40%, with expensed capped at 0.40% until May 1, 2013 (excludes certain expenses, such as interest). The fund expects to make quarterly distributions to shareholders.