ARMOUR Residential REIT, Inc.

Frequently Asked Questions About ARR

What does ARR invest in?

ARMOUR Residential REIT, Inc. (ARR), founded in 2008 and based in Vero Beach, Florida, primarily allocates its capital to residential mortgage-backed securities (MBS) within the United States. Its investment holdings predominantly comprise MBS that are either issued or guaranteed by U.S. Government-sponsored entities (GSEs) and the Government National Mortgage Association (GNMA. These securities are underpinned by various home loans, including fixed-rate, hybrid adjustable-rate, and adjustable-rate mortgages. The company's portfolio also encompasses unsecured debt instruments and bonds from GSEs, U.S. Treasury securities, and money market funds. Furthermore, ARR invests in other residential mortgage-backed securities where the principal and interest payments lack a guarantee from a GSE or other government agency. As a Real Estate Investment Trust (REIT) under the Internal Revenue Code, the company benefits from an exemption from corporate income tax on the portion of its net earnings that is distributed to its shareholders.

What is the expense ratio of ARR?

An expense ratio for ARMOUR Residential REIT, Inc. (ARR) is not available from our data sources — neither our market-data feed nor the SEC's structured prospectus and annual-report datasets report one for this share class. The fund's prospectus on the issuer's site carries the authoritative fee.

What is ARR's dividend yield?

ARR's trailing-twelve-month yield is 19.14%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of ARR?

Effective duration measures ARR's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. ARR's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of ARR?

ARR's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of ARR?

Yield to maturity (YTM) is the total return you'd earn from ARR if every bond in the portfolio is held to maturity at the current price. ARR's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.