iShares MBS ETF

The iShares MBS ETF is an exchange-traded fund that primarily invests in U.S. mortgage-backed securities (MBS). Its main function is to track the investment results of the Bloomberg US MBS Index, which includes fixed-rate agency mortgage-backed pass-through securities. Notably, the ETF provides investors with exposure to a broad array of mortgage-backed securities issued by U.S. government entities such as Ginnie Mae, Fannie Mae, and Freddie Mac. These securities are backed by pools of mortgages, offering a relatively stable income stream due to the regular payments from the underlying home mortgages. The iShares MBS ETF plays a significant role in the fixed income market by offering a diversified approach to mortgage investments, allowing both retail and institutional investors to access a segment of the bond market typically characterized by lower yield volatility compared to other bond sectors. Moreover, its holdings contribute to the housing finance ecosystem by supporting governmental initiatives designed to promote affordable housing and ensure liquidity in the mortgage market.