Mulling Mortgage-Backed Securities ETFs

MBB, which tracks the Bloomberg Barclays US Mortgage Backed Securities Index, holds nearly 710 MBS. The fund has an effective duration of 4.64 years and credit risk is minimal because MBS are U.S. government debt. Over 98% of the ETF’s holdings carry AAA ratings.

Other MBS ETFs include the Vanguard Mortgage-Backed Securities Index ETF (NYSEArca: VMBS), SPDR Barclays Mortgage Backed Bond ETF (NYSEArca: MBG), iShares CMBS ETF (NYSEArca: CMBS), iShares Core GNMA Bond ETF (NYSEArca: GNMA), FlexShares Disciplined Duration MBS Index Fund (NasdaqGM: MBSD) and First Trust Low Duration Mortgage Opportunities ETF (NasdaqGM: LMBS).

Year-to-date, investors have added $547.38 million to MBB.

For more information on Fixed-Income ETFs, visit our Fixed-Income category.