one REIT ETF for yield pigs?

Are you an yield pig?

http://blogs.barrons.com/incomeinvesting/2016/05/04/pair-trade-from-gundlach-buy-mortgage-reits-sell-utilities/

Bond king Jeffrey Gundlach of Doubleline Capital suggested a pair trade at the Ira Sohn investment conference on Wednesday: Sell utilities while investing in mortgage REITs.
He suggested going short the Utilities Select Sector SPDR (XLU) while going long on theiShares Mortgage Real Estate Capped ETF (REM).
The two asset classes have diverged in recent months as investors have flocked to utilities amid market instability.
“The utilities index has done extraordinarily well because people think it’s safe,” Gundlach said.
The mortgage REITs, meanwhile, have lagged. He suspects that has more to do with market psychology than with fundamentals, as skittish ETF investors have cashed out of REM, causing downward pressure on the ETF.
The REITs now trade at 0.8 times book value, while utilities trade at 1.9 times.
“I expect things will converge,” he said, noting that they’ve traded in relatively close correlation historically.
Gundlach suggests using leverage to goose the trade, which he suspects will return 35% in a year’s time.

https://www.google.com/#q=ishares+mortgage+real+estate+capped+etf+share+price

https://www.ishares.com/us/literature/fact-sheet/rem-ishares-mortgage-real-estate-capped-etf-fund-fact-sheet-en-us.pdf

https://www.ishares.com/us/products/239543/ishares-mortgage-real-estate-capped-etf

Price range to widen and swing wildly

From El-Erian:

On the way up, prices overshoot levels warranted by the exceptional funding that markets obtain.
On the way down, prices fall below what would otherwise prevail on the basis of fundamentals.
This behavior is likely to continue in the short-term, shifting the opportunities for higher monthly/quarterly returns away from conventional strategic long-term portfolio positioning and toward more short-term trading and volatility trades.
A constructive policy response would require a transition from the excessive reliance on central banks to a set of policies that reinvigorates growth engines, deals with aggregate demand imbalances, addresses excessive pockets of indebtedness and makes progress in completing regional and global economic/financial architectures (which also would counter the rise of political extremes on both sides of the Atlantic). If this approach were successful, range-bound trading would yield to genuinely higher financial asset prices that are firmly supported by strengthening fundamentals.

There is a genuine threat of prices falling below fundamentals. Tremendous oppportunities lurk over the horizon.

It is however, getting to the horizon that will test both our patience and skill.

Trading Account Costs - Stanchart

Brokerage & Market Fees

Australia	Australian SE (ASX)	0.25%	0.20%	Exchange fee of 0.0028% (max. of AUD75)
Japan	Tokyo SE (TSE)	0.25%	0.20%	No charge
Singapore	Singapore SE (SGX)	0.20%	0.18%	Exchange Fee of 0.04%
Hong Kong	Hong Kong SE (SEHK)	0.25%	0.20%	Stamp Duty of 0.10% rounded up nearest dollar Transaction Levy of 0.003% Trading Fee of 0.005%
France	NYSE EN Paris (PAR)	0.25%	0.20%	Transaction fee of EUR 1.40 + 0.0015% (max. of EUR20) French Financial Transaction Tax (FFTT) of 0.20% where applicable.
Switzerland	SIX Swiss Exchange (VTX)	0.25%	0.20%	Exchange fee of 0.004% (min. of CHF0.50 and max. of CHF55) Ticket fee of CHF1.00
	SIX Swiss Exchange (SWX)			Exchange fee of 0.01% (min. of CHF0.50 and max. of CHF55) Ticket fee of CHF1.00
Germany	Deutsche Boerse (XETRA)	0.25%	0.20%	Clearing fee 0.0015% (max. of EUR5.70) Ticket fee of EUR0.40 Settlement fee of EUR0.425 Exchange fee of 0.0048% (min. of EUR0.60 and max. of EUR18.00)
UK	London Stock Exchange (LSE SETS)	0.25%	0.20%	Stamp Duty of 0.50% (Buy trades; GB ISIN shares only) Stamp Duty of 1.00% (Buy trades; IE ISIN shares only) Levy of 1 GBP for any transaction > GBP 10,000 (Buy & Sell trades)
Netherlands	NYSE EN Amsterdam (AMS)	0.25%	0.20%	Transaction fee of EUR 1.40 + 0.0015% (max. of EUR 20)
United States	NYSE AMEX (AMEX) NASDAQ (NASDAQ) New York Stock Exchange (NYSE)	0.25%	0.20%	0.00174% on sell trades only (min. of USD0.01)