Mortgage-Backed Security ETFs on the Horizon
January 30th at 11:00am by Tom Lydon
Invesco PowerShares filed to launch two new actively managed exchange traded funds(ETFs). These will be the first non-agency mortgage-backed securities funds.Registration statements went up today regarding the new ETFs. CNN Money reports that the new ETFs are:
- PowerShares Prime Non-Agency RMBS Opportunity Fund
- PowerShares Alt-A Non-Agency RMBS Opportunity Fund
Mortgage-backed securities prices have been pushed below their fundamental values, and the provider sees this as an entry into this area of the market. The ETFs are intended to provide access and transparency into these markets with additional liquidity. They will invest primarily in non-agency, residential mortgage-backed securities.
Stay tuned…
