In addition to relative price stability, MBS investors whom are looking for ETF exposure for this segment also likely desire yield, and for example, MBB currently has a 30 day SEC yield of 2.63% while CMBS for example yields 4.14%. What is inside these particular ETFs exactly? Well in the case of the largest fund in the sector, MBB, top holdings are bond issues from Fannie Mae, Ginnie Mae, and Freddie Mac, while CMBS for example provides exposure to pools of commercial mortgages via its current underlying holdings, which are basically securitized instruments put together by banks such as JP Morgan, Goldman Sachs, Morgan Stanley, and Bank of America.
iShares Barclays MBS Fixed Rate Bond
For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at [email protected].