REM vs. FNMA
REM (iShares Mortgage Real Estate ETF) is REIT fund tracking the FTSE NAREIT All Mortgage Capped Index, while FNMA (Federal National Mortgage Association) is a stock. Over the past 10 years, REM returned 2.55%/yr vs 10.59%/yr for FNMA. At a 0.22 correlation, their price movements are largely independent.
Performance
REM vs. FNMA - Performance Comparison
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Returns By Period
In the year-to-date period, REM achieves a -2.10% return, which is significantly higher than FNMA's -40.82% return. Over the past 10 years, REM has underperformed FNMA with an annualized return of 2.55%, while FNMA has yielded a comparatively higher 10.59% annualized return.
REM
- 1D
- -1.24%
- 1M
- -4.86%
- YTD
- -2.10%
- 6M
- -2.10%
- 1Y
- 11.53%
- 3Y*
- 8.00%
- 5Y*
- -2.48%
- 10Y*
- 2.55%
FNMA
- 1D
- -9.93%
- 1M
- -26.84%
- YTD
- -40.82%
- 6M
- -45.07%
- 1Y
- -32.16%
- 3Y*
- 144.17%
- 5Y*
- 22.52%
- 10Y*
- 10.59%
REM vs. FNMA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
REM iShares Mortgage Real Estate ETF | -2.10% | 13.30% | -1.00% | 14.43% | -27.56% | 16.14% | -19.99% | 21.34% | -3.09% | 18.43% |
FNMA Federal National Mortgage Association | -40.82% | 227.13% | 206.54% | 202.77% | -56.90% | -65.69% | -23.40% | 194.34% | -60.00% | -32.05% |
Correlation
The correlation between REM and FNMA is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.15 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.15 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.19 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.17 |
Correlation (All Time) Calculated using the full available price history since May 7, 2007 | 0.22 |
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Return for Risk
REM vs. FNMA — Risk / Return Rank
REM
FNMA
REM vs. FNMA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Mortgage Real Estate ETF (REM) and Federal National Mortgage Association (FNMA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| REM | FNMA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.03 | ||
| Sortino ratioReturn per unit of downside risk | +1.02 | ||
| Omega ratioGain probability vs. loss probability | 1.13 | 1.00 | +0.12 |
| Calmar ratioReturn relative to maximum drawdown | 0.81 | -0.46 | +1.28 |
| Martin ratioReturn relative to average drawdown | 2.33 | -0.89 | +3.22 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| REM | FNMA | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.69 | -0.34 | +1.03 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.11 | 0.25 | -0.35 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.09 | 0.13 | -0.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.05 | 0.07 | -0.12 |
Drawdowns
REM vs. FNMA - Drawdown Comparison
The maximum REM drawdown since its inception was -74.73%, smaller than the maximum FNMA drawdown of -99.74%. Use the drawdown chart below to compare losses from any high point for REM and FNMA.
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Drawdown Indicators
| REM | FNMA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -74.73% | -99.74% | +25.01% |
Max Drawdown (1Y)Largest decline over 1 year | -14.25% | -69.76% | +55.51% |
Max Drawdown (3Y)Largest decline over 3 years | -21.91% | -69.76% | +47.85% |
Max Drawdown (5Y)Largest decline over 5 years | -43.31% | -85.40% | +42.09% |
Max Drawdown (10Y)Largest decline over 10 years | -68.52% | -92.13% | +23.61% |
Current DrawdownCurrent decline from peak | -23.85% | -91.33% | +67.48% |
Average DrawdownAverage peak-to-trough decline | -38.35% | -46.16% | +7.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.95% | 36.31% | -31.36% |
Volatility
REM vs. FNMA - Volatility Comparison
The current volatility for iShares Mortgage Real Estate ETF (REM) is 3.81%, while Federal National Mortgage Association (FNMA) has a volatility of 17.91%. This indicates that REM experiences smaller price fluctuations and is considered to be less risky than FNMA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| REM | FNMA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.81% | 17.91% | -14.10% |
Volatility (6M)Calculated over the trailing 6-month period | 13.01% | 66.26% | -53.25% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.85% | 94.78% | -77.93% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.57% | 91.90% | -68.33% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 28.27% | 81.90% | -53.63% |
Dividends
REM vs. FNMA - Dividend Comparison
REM's dividend yield for the trailing twelve months is around 9.19%, while FNMA has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FNMA Federal National Mortgage Association | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
REM iShares Mortgage Real Estate ETF | 9.19% | 8.70% | 9.61% | 9.46% | 11.13% | 7.29% | 7.72% | 8.16% | 10.00% | 9.97% | 10.03% | 11.99% |
Frequently Asked Questions
REM and FNMA have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FNMA has higher volatility (17.91%) compared to REM (3.81%). In terms of maximum drawdown, REM dropped -74.73% vs FNMA's -99.74%.
REM currently has the higher Sharpe Ratio (0.69 vs -0.34), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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