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AGNC Investment Reports Q1 Earnings: REIT ETFs in Focus
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REIT AGNC Investment Corporation (AGNC - Free Report) reported first-quarter 2017 net spread and dollar roll income (excluding $0.03 per share catch up premium) of $0.64/ share, beating the Zacks Consensus Estimate of $0.58. It reported net interest income of $198 million for the quarter in discussion, up roughly 1% from $196 million a year ago. However, net interest income declined roughly 33% from $295 million in the last quarter of 2016.
Moreover, it reported high variability in Other Income (Loss) data, with loss of $105 million in the quarter against a gain of $741 million in the previous quarter. It had reported a loss of $935 million in the year-ago quarter.
Comprehensive income per share came in at $0.35 against a loss of $1.19 in the previous quarter. The company had recorded a gain of $0.01 in the year-ago quarter. Moreover, the company declared a dividend of $0.54 per share for the quarter.
The company reported net book value per share of $20.98, down 0.9% from $21.17 in the previous quarter. Its tangible net book value per share also decreased to $19.31 from $19.50 in the previous quarter. The company cited Agency MBS underperforming interest rate hedges in the quarter as the reason for the decrease.
Shares of AGNC closed 0.53% higher at market close on April 26, 2017.
iShares Mortgage Real Estate Capped ETF (REM - Free Report)
This fund offers exposure to the U.S. residential and commercial real estate space. It has AUM of $1.3 billion and charges a fee of 48 basis points a year. It has 10.44% exposure to AGNC (as of April 25, 2017). It bears significant concentration risk as almost 70% of the fund assets are allocated to the top 10 holdings. The fund returned 11.94% in the year-to-date frame and 32.7% in the past one year (as of April 26. 2017). It closed 0.88% higher at market close on April 26, 2017. The fund currently has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.
VanEck Vectors Mortgage REIT Income ETF (MORT - Free Report)
This fund seeks to provide exposure to the U.S. mortgage REIT space. It has AUM of $147.7 million and charges a fee of 41 basis points a year. It has a 7.82% exposure to AGNC (as of April 26, 2017). It bears significant concentration risk as over 63% of the fund assets are allocated to the top 10 holdings. The fund returned 12.57% in the year-to-date frame and 23.1% in the past one year (as of April 26. 2017). It closed 0.90% higher at market close on Wednesday, April 26, 2017. The fund currently has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Below is a year-to-date chart comparing the performance of the funds and AGNC.
Source: Yahoo Finance
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AGNC Investment Reports Q1 Earnings: REIT ETFs in Focus
REIT AGNC Investment Corporation (AGNC - Free Report) reported first-quarter 2017 net spread and dollar roll income (excluding $0.03 per share catch up premium) of $0.64/ share, beating the Zacks Consensus Estimate of $0.58. It reported net interest income of $198 million for the quarter in discussion, up roughly 1% from $196 million a year ago. However, net interest income declined roughly 33% from $295 million in the last quarter of 2016.
Moreover, it reported high variability in Other Income (Loss) data, with loss of $105 million in the quarter against a gain of $741 million in the previous quarter. It had reported a loss of $935 million in the year-ago quarter.
Comprehensive income per share came in at $0.35 against a loss of $1.19 in the previous quarter. The company had recorded a gain of $0.01 in the year-ago quarter. Moreover, the company declared a dividend of $0.54 per share for the quarter.
The company reported net book value per share of $20.98, down 0.9% from $21.17 in the previous quarter. Its tangible net book value per share also decreased to $19.31 from $19.50 in the previous quarter. The company cited Agency MBS underperforming interest rate hedges in the quarter as the reason for the decrease.
Shares of AGNC closed 0.53% higher at market close on April 26, 2017.
Let us discuss the ETFs that have a relatively high exposure to AGNC (read: Why to Buy REIT ETFs in 2017?).
iShares Mortgage Real Estate Capped ETF (REM - Free Report)
This fund offers exposure to the U.S. residential and commercial real estate space. It has AUM of $1.3 billion and charges a fee of 48 basis points a year. It has 10.44% exposure to AGNC (as of April 25, 2017). It bears significant concentration risk as almost 70% of the fund assets are allocated to the top 10 holdings. The fund returned 11.94% in the year-to-date frame and 32.7% in the past one year (as of April 26. 2017). It closed 0.88% higher at market close on April 26, 2017. The fund currently has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.
VanEck Vectors Mortgage REIT Income ETF (MORT - Free Report)
This fund seeks to provide exposure to the U.S. mortgage REIT space. It has AUM of $147.7 million and charges a fee of 41 basis points a year. It has a 7.82% exposure to AGNC (as of April 26, 2017). It bears significant concentration risk as over 63% of the fund assets are allocated to the top 10 holdings. The fund returned 12.57% in the year-to-date frame and 23.1% in the past one year (as of April 26. 2017). It closed 0.90% higher at market close on Wednesday, April 26, 2017. The fund currently has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Below is a year-to-date chart comparing the performance of the funds and AGNC.
Source: Yahoo Finance
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
.