NETL vs REM: Real Estate ETF Showdown
Institutional side-by-side analysis of fees, dividend cash flows, and underlying holdings overlap.
Key Fundamental Specifications
| Metric | NETL | REM |
|---|---|---|
| Annual Expense Ratio | 0.60% | 0.48% Lowest Fee |
| Annual Dividend Yield | 5.25% | 10.45% Higher Yield |
| Assets Under Management (AUM) | $0.1 Billion | $0.7 Billion |
| Number of Holdings | 24 Constituents | 35 Constituents |
| Fund Issuer | Fundamental Income | BlackRock |
| Benchmark Index | Fundamental Income Net Lease Real Estate Index | FTSE Nareit All Mortgage Capped Index |
Top Holdings & Weight Overlap
Constituent weights across both funds:
| REIT Constituent | NETL Weight | REM Weight |
|---|---|---|
| O Realty Income Corp. | 11.5% | 0.0% |
| WPC W.P. Carey Inc. | 10.2% | 0.0% |
| NNN NNN REIT Inc. | 9.8% | 0.0% |
| ADC Agree Realty Corp. | 8.9% | 0.0% |
| EPRT Essential Properties Realty | 7.6% | 0.0% |
| AGNC AGNC Investment Corp. | 0.0% | 14.5% |
| NLY Annaly Capital Management | 0.0% | 13.8% |
| STWD Starwood Property Trust | 0.0% | 8.2% |
| BXMT Blackstone Mortgage Trust | 0.0% | 5.4% |
| RITM Rithm Capital Corp. | 0.0% | 5.1% |
Institutional Verdict: NETL or REM?
Fee Advantage: REM offers the lower expense ratio at 0.48% vs 0.60%. Over a 20-year holding period, lower expense drag preserves thousands of dollars in cumulative returns.
Yield Generation: For income-focused investors, REM provides the higher current dividend yield at 10.45%, making it more attractive for living off dividend cash flow.
Conclusion: If your priority is low-cost passive index tracking, choose REM. If your mandate is maximum immediate dividend yield, choose REM.
Frequently Asked Questions
What is the difference between NETL and REM?
NETLease Corporate Real Estate ETF (NETL) is issued by Fundamental Income with an expense ratio of 0.60% and dividend yield of 5.25%. In comparison, iShares Mortgage Real Estate ETF (REM) is issued by BlackRock charging 0.48% with a yield of 10.45%.
Which REIT ETF has lower fees: NETL or REM?
REM has the lower annual expense ratio (0.48% vs 0.60%), saving long-term investors money on compounding fee drag.
Which ETF pays a higher dividend yield: NETL or REM?
REM currently pays the higher annualized dividend yield (10.45% vs 5.25%).
Can I hold both NETL and REM in a portfolio?
While you can hold both, NETL and REM share significant constituent overlap in top REITs like Prologis, American Tower, and Equinix. Holding both may cause redundant portfolio exposure.