We see a yield at the moment of 1.70% in MBB, and it is rather safe to say that portfolio managers are not typically buying this product for high yield purposes, but rather steady and dependable income. Fund literature states when making the case for MBB that it grants “1) Exposure to broad range of U.S. mortgage-backed bonds including those issued by government sponsored enterprises such as Ginnie Mae, Fannie Mae, and Freddie Mac 2) Access to the domestic mortgage-backed bond market in a single fund and 3) Use to seek income.”
iShares MBS ETF
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