Ellington Credit Company

Frequently Asked Questions About EARN

What does EARN invest in?

Ellington Residential Mortgage REIT functions as a real estate investment trust (REIT), with its core business focused on the acquisition, investment, and oversight of assets tied to residential mortgages and real estate. The company's holdings primarily include various Residential Mortgage-Backed Securities (RMBS), such as government-backed agency pools and agency Collateralized Mortgage Obligations (CMOs). Additionally, it invests in non-agency RMBS, which encompasses non-agency CMOs ranging from investment-grade to non-investment-grade ratings. Having opted for REIT tax treatment, the company benefits from an exemption from corporate income tax on the segment of its net earnings that are distributed to its investors. Ellington Residential Mortgage REIT was established in 2012 and is headquartered in Old Greenwich, Connecticut.

What is the expense ratio of EARN?

An expense ratio for Ellington Credit Company (EARN) 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 EARN's dividend yield?

EARN's trailing-twelve-month yield is 25.57%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of EARN?

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

What is the credit quality of EARN?

EARN'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 EARN?

Yield to maturity (YTM) is the total return you'd earn from EARN if every bond in the portfolio is held to maturity at the current price. EARN'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.