Wednesday, August 15, 2007

Can an Index go to Zero?

ETF's have been all the rage the last few years, and there are something like 500 of them out there now, some broad based and others covering really obscure sectors and niche industries. I found one the other day called the iShares FTSE NAREIT Mortgage REIT Index Fund. The symbol is REM.

REM

It is already down 48% from its peak in June, but taking a look at the holdings, it is conceivable that it could go much lower. Maybe not zero, but a lot lower than $26 per share.

Top Holdings

25.99% ANNALY CAPITAL MANAGEMENT IN
6.83% THORNBURG MORTGAGE INC
6.20% REDWOOD TRUST INC
5.83% NEWCASTLE INVESTMENT CORP
5.40% FRIEDMAN BILLINGS RAMSEY-A
4.67% MFA MORTGAGE INVESTMENTS INC
4.48% NORTHSTAR REALTY FINANCE COR
4.10% ANTHRACITE CAPITAL INC
3.77% CAPITAL TRUST-CL A
3.69% GRAMERCY CAPITAL CORP

3 comments:

Adventures In Money Making said...

I just sold my holding in NLY for a small profit last friday!


Got out just in time!

If only I had closed my long position on Citigroup too!

Adventures In Money Making said...

check out TMA - its up 45%!!!

Eric J. Fox said...

One thing I want to know is why Friedman Billings is in this index.