The iShares MBS Bond ETF provides exposure to the mortgage-backed security slice of the bond market. It seeks to track the investment results that correspond to the investment grade agency mortgage-backed securities sector of the U.S. as defined by the Barclays Capital U.S. MBS Fixed-Rate Index. The Fund offers access to the domestic mortgage-backed bond market, which includes securities issued by GNMA, FHLMC, and FNMA that have 30-, 20-, 15-year and balloon securities. MBB’s majority holdings are concentrated in 30-year-fixed-rate mortgages. As of March 2021, the iShares MBS Bond ETF had $26.45 billion in assets.
MBB is a good option for investors looking to invest in fixed-rate mortgage pass-through securities.
It offers exposure to a broad range of U.S. mortgage-backed bonds, including those issued by government sponsored enterprises such as Ginnie Mae, Fannie Mae, and Freddie Mac.
U.S. government agencies: Federal National Mortgage Association (FNMA), the government National mortgage association (GNMA), and the Federal Home Loan mortgage Corporation (FHLMC).
MBB TOP 10 HOLDINGS
Fnma Pass-Thru I 2.5% 1.93
Government National Mortgage Association 2% 1.90
Federal National Mortgage Association 1.5% 1.72
Fnma Pass-Thru I 2.5% 1.30
Federal National Mortgage Association 1.5% 1.24
As of 04/06/21