Is AGNC Investment a Yield Trap? The Answer Is Complicated.

In general, REITs are simple to understand. They buy properties and lease them out to tenants, just like you would do if you owned a rental property. The difference is the scale of the assets, not the business model. AGNC Investment, however, isn't a property-owning REIT. It is a mortgage REIT. Mortgage REITs like AGNC buy mortgages that have been pooled together into bond-like securities. That's nothing like owning a property. What AGNC Investment does is more like running a bond mutual fund, which isn't s ...