Should You Buy (NYSEARCA: MORT) ETF?

The property market has had a challenging year, with several interest rate hikes from the Federal Reserve resulting in a spike in mortgage rates, pressuring the property market. The VanEck Mortgage REIT Income ETF (NYSEARCA: MORT) has felt the full force of these hikes, with its shares trading considerably lower.

MORT is an exchange-traded fund (ETF) that rarely strays from real estate investment trusts (REITs). Mortgage REITs (mREITs) enable investors to participate in the real estate market without owning any real estate or physical property.

If you are an investor looking to benefit from mREITs, MORT may be the ETF for you.

MORT Stock Price

MORT’s stock price has been harmed by external economic factors this year. The Fed's decision to raise rates has been one of the deciding factors in the decline of MORT’s price.

Over the year, MORT has traded in a bearish direction, moving in a downward trend. The stock has moved in the direction of the sector, with REIT stocks such as Simon Property and Realty Income also down significantly. 

Despite small attempts by bullish investors to push MORT higher in recent months, the ETF is still down considerably. However, over the last month, the stock has shown signs of recovery, trading above its yearly lows and consistently breaking its resistance levels.

MORT Stock Forecast

Investors try to forecast potential growth or decline in a REIT such as MORT. The current market climate is challenging for real estate. Higher interest rates and inflation hurt consumer spending and leave buyers in a rough position. 

An economic slowdown has been underway for a while and a recession is seemingly looming. 

It is difficult to argue for the real estate industry as a sound investment at this time. However, the recent decline in inflation and slightly dovish tone from the Fed suggests a possible improvement to an ETF such as MORT. 

The spike in mortgage rates could help boost the stock’s dividend and interest from investors, although the challenging economic environment is still hard to ignore.

Currently, MORT is experiencing bearish sentiment based on external factors. The ETF relies mainly on outside factors, making it difficult to predict precisely where the stock will go.

MORT Stock News

Mortgage REITs have suffered this year because mortgage rates have soared, and the demand for houses is inversely correlated. Overall stock market trends are key to MORT, and the Fed's decisions over the year have led to house prices falling to lower levels. While mortgage rates have declined slightly, it is not yet enough for some analysts.

Analysts have noted positive signs for MORT in recent months, resulting in a trend to the upside boosted by recent remarks from Federal Reserve Chair Powell.

Read here for more MORT news.

How to Buy VanEck Mortgage REIT Income ETF Shares

If you are currently set up with a broker, and it offers MORT, all that is required is to search for MORT on the platform, open a trade ticket, fill in the details and click submit or buy to acquire shares in MORT.

However, if your broker doesn’t offer MORT shares or you don’t yet have a brokerage account, here’s what you need to do.

Find a brokerage

A broker acts as the intermediary between you and the stock exchange. The customer places an order, and the broker carries out those instructions. For example, if you decide to purchase shares in MORT, you instruct your broker to buy the number of shares you request at the price you set, and it carries out those instructions. 

In return, the brokerage will likely charge a small fee, which varies depending on the broker. Research costs and other aspects before setting up an account.

Decide how many shares you want to buy

Once you have found a broker, the next step is deciding how many shares you wish to buy of MORT. It's essential to consider the amount of risk you want to attribute to MORT and your investment style.

For example, many investors start with a small investment and add to it consistently over time. 

Choose the order type

This stage requires you to decide on how your position is executed. Several different order types exist, but the primary two you need to know are market and limit orders. 

Market orders allow investors the opportunity to acquire shares at a price dictated by the market. Using market orders results in a high chance your order will be filled. 

Limit orders allow the investor to decide the price at which they wish to enter the market. You can determine what price you acquire the shares at, but you face the risk that the order won’t be filled if the price doesn’t hit your predetermined level. 

Buy the shares

The last step is to acquire the shares after completing all the necessary steps. Once the trade ticket is opened and the required fields are completed, the last thing to do is click buy. You can monitor the stock and other positions by navigating to the correct tab on your brokerage platform.

Best Online Stock Brokers for MORT Shares

If you decide to purchase shares in MORT, it is essential to find the best broker. Each broker comes with a range of qualities and fees that can impact a trader. Below is a list of the top brokers that offer the opportunity to invest in MORT.

Ticker on Benzinga Pro

Bollinger Bands show share prices one standard deviation above and below a moving average, usually the 20-day simple moving average. MORT has consistently tested its upper band in recent weeks.

Furthermore, the 100-day moving average on a daily chart has acted as a somewhat solid resistance level in recent months and could be something to watch if there is a definite break and close above. 

 Screenshot taken from Benzinga Pro on 12-02-2022

Can the Housing Market Recover?

MORT is a solid ETF but has suffered considerably from a decline in the housing market this year. The popularity of REITs comes from their relatively high dividends, making them attractive to dividend investors. 

However, the ETF is heavily reliant on outside factors. As a result, it can be pretty volatile and difficult to predict. Nevertheless, if the recovery in the housing market can occur through 2023, MORT could be one to watch for investors.

While trying to determine the extent of a housing market decline is a challenging task, history says that the market will more than likely recover, which should boost MORT.

Frequently Asked Questions