Could you please elaborate on the yield of Mortgage-Backed Securities (MBS)? I'm curious to understand how the yield is calculated and what factors influence its value. Additionally, how does the yield on MBS compare to other types of fixed-income investments, such as Treasury bonds or corporate bonds? Understanding the yield dynamics of MBS is crucial for investors looking to diversify their portfolios and manage risk effectively.
5 answers
Raffaele
Fri Sep 20 2024
Despite generating modest returns in the past, funds that invest in mortgage securities have now become attractive due to their appealing yields. Investors seeking stable income streams may find these investments to be suitable options.
Raffaele
Fri Sep 20 2024
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CoinPrince
Fri Sep 20 2024
Among the funds mentioned, the iShares MBS ETF (ticker: MBB) has delivered a total return of 1.1% over the past year, while offering a yield of 4.6%. This performance indicates that the fund has been able to provide investors with a steady income while also appreciating in value.
MysticMoon
Fri Sep 20 2024
Another fund, the Vanguard Mortgage-Backed Securities ETF (ticker: VMBS), has achieved a 1.2% total return over the past year and boasts a yield of 4.3%. Its performance highlights the potential for mortgage-backed securities to deliver stable and predictable returns.
KpopStarlight
Fri Sep 20 2024
The SPDR Portfolio Mortgage Backed Bond ETF (ticker: SPMB) has also performed well, with a total return of 0.8% over the past year and a yield of 4.7%. This fund offers investors exposure to a diversified portfolio of mortgage-backed securities, providing a low-cost way to access this asset class.