Harrison, along with many other advisors, likes MBS ETFs because they seem relatively safer compared to mutual funds since the securities in mutual funds don’t all have the full backing of the government. Harrison also cautions against overweighting investments as the portfolio holdings in MBS ETFs may also overlap with other bond ETFs.
MBS ETFs include:
- Vanguard Mortgage Backed Securities ETF (NasdaqGM: VMBS) is up 5.08% year-to-date. The fund has a 12-month yield of 2.17%.
- SPDR Barclays Capital Mortgage Backed Bond ETF (NYSEArca: MBG) is up 6.45% year-to-date. The fund has a 12-month yield of 1.75%.
- iShares Barclays MBS Bond Fund (NYSEArca: MBB) is up 5.00% year-to-date. The fund has a 12-month yield of 3.32%.
For more information on real estate investment trusts, visit our REITs category.
iShares Barclays MBS Bond Fund
