Average Daily Volume
3.17M
Fund Overview
The iShares MBS ETF (MBB) is designed to track the investment results of an index composed of investment-grade mortgage-backed securities (MBS) issued or guaranteed by U.S. government agencies such as Fannie Mae, Freddie Mac, and Ginnie Mae. MBB provides exposure to a diversified portfolio of fixed-rate MBS, offering investors a way to gain access to the U.S. mortgage market with the credit backing of government-sponsored entities. The fund is known for its relatively low credit risk due to the implicit or explicit government guarantee of its underlying securities. MBB is a popular choice for income-focused investors seeking stable returns with lower volatility compared to other fixed-income sectors.
- Asset Class
-
Bond
- Industry
-
Mortgage REITs
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 4.07 %
- Currency Hedged
-
No
- Portfolio Turnover
-
219 %
- Dividend Date
-
Why Invest in the MBB ETF?
Potential Benefits
- Provides exposure to a diversified portfolio of U.S. government-backed mortgage securities, reducing credit risk.
- Offers relatively stable income through monthly distributions, appealing to income-focused investors.
- Lower volatility compared to corporate bonds or equities, making it suitable for conservative portfolios.
- Liquidity is high due to the fund's large size and the underlying market for agency MBS.
- Acts as a hedge against economic uncertainty due to the government backing of its holdings.
Potential Risks
- Interest rate risk: Rising rates can lead to lower bond prices and potential capital losses.
- Prepayment risk: Homeowners may refinance mortgages, leading to early return of principal at unfavorable rates.
- Lower yield compared to corporate bonds or high-yield debt, which may not meet some investors' income needs.
- Inflation risk: Fixed coupon payments may lose purchasing power over time if inflation rises.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.5%
|
+1.6%
|
-1.7%
|
+0.2%
|
+0.4%
|
+0.1%
|
-1.3%
|
+0.6%
|
-3.4%
|
0.0%
|
-
|
-
|
| 2025 |
+0.6%
|
+2.4%
|
0.0%
|
+0.4%
|
-0.9%
|
+1.7%
|
-0.5%
|
+1.7%
|
+1.2%
|
+0.8%
|
+0.6%
|
+0.1%
|
| 2024 |
-0.3%
|
-1.7%
|
+0.9%
|
-2.8%
|
+2.0%
|
+1.2%
|
+2.6%
|
+1.7%
|
+0.9%
|
-2.8%
|
+1.5%
|
-1.8%
|
| 2023 |
+3.4%
|
-2.7%
|
+2.1%
|
+0.4%
|
-0.7%
|
-0.5%
|
-0.1%
|
-0.8%
|
-3.1%
|
-2.1%
|
+5.2%
|
+4.2%
|
| 2022 |
-1.4%
|
-1.2%
|
-2.4%
|
-3.6%
|
+1.2%
|
-1.5%
|
+3.2%
|
-3.5%
|
-5.1%
|
-1.1%
|
+4.3%
|
-0.8%
|
| 2021 |
+0.1%
|
-0.9%
|
-0.5%
|
+0.6%
|
-0.3%
|
0.0%
|
+0.5%
|
0.0%
|
-0.3%
|
-0.3%
|
-0.2%
|
-0.1%
|
| 2020 |
+0.7%
|
+0.8%
|
+1.1%
|
+0.8%
|
+0.2%
|
-0.2%
|
+0.3%
|
+0.1%
|
-0.1%
|
+0.1%
|
0.0%
|
+0.2%
|
| 2019 |
+0.8%
|
-0.1%
|
+1.4%
|
-0.1%
|
+1.2%
|
+0.8%
|
+0.4%
|
+1.0%
|
+0.1%
|
+0.3%
|
0.0%
|
+0.2%
|
| 2018 |
-1.2%
|
-0.7%
|
+0.5%
|
-0.6%
|
+0.7%
|
+0.1%
|
-0.2%
|
+0.6%
|
-0.6%
|
-0.6%
|
+0.9%
|
+1.8%
|
| 2017 |
+0.1%
|
+0.5%
|
0.0%
|
+0.6%
|
+0.5%
|
-0.3%
|
+0.5%
|
+0.7%
|
-0.3%
|
0.0%
|
-0.1%
|
+0.3%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: MBB vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
MBB seeks to track the Bloomberg U.S. MBS Index, which includes fixed-rate, investment-grade mortgage-backed securities issued by U.S. government agencies. The index is market-cap weighted, reflecting the relative size of each security in the agency MBS market. The fund holds a diversified portfolio of these securities, providing exposure to the broader mortgage market. MBB is passively managed and rebalances periodically to align with the index composition, typically adjusting as new securities are issued or older ones mature or are prepaid.
Frequently Asked Questions
What types of mortgage-backed securities does MBB hold?
MBB primarily holds investment-grade, fixed-rate mortgage-backed securities issued or guaranteed by U.S. government agencies like Fannie Mae, Freddie Mac, and Ginnie Mae.
How does MBB compare to investing directly in individual MBS?
MBB offers diversification across hundreds of MBS in a single trade, eliminating the need to research and purchase individual securities while providing daily liquidity that individual MBS lack.
Is MBB suitable for investors concerned about credit risk?
Yes, MBB's holdings are backed by U.S. government-sponsored entities, significantly reducing credit risk compared to non-agency MBS or corporate bonds.
How does MBB perform during periods of rising interest rates?
Like all fixed-income securities, MBB's price may decline when interest rates rise, though its government backing helps mitigate some volatility. However, rising rates typically lead to higher yields over time.
What is MBB's dividend distribution schedule?
MBB distributes income monthly, making it attractive for investors seeking regular cash flow from their investments.
Industry Overview
The iShares MBS ETF (MBB) provides exposure to the U.S. mortgage-backed securities (MBS) market, which consists of pools of residential mortgages packaged into tradable securities. These securities are primarily issued or guaranteed by government-sponsored entities like Fannie Mae, Freddie Mac, and Ginnie Mae, offering investors a way to participate in the U.S. housing market with reduced credit risk. MBS are a key component of the fixed-income market, often appealing to investors seeking stable income with government backing. MBB's focus on investment-grade agency MBS makes it a core holding for conservative investors looking to balance yield and safety in their portfolios.
Alternative Comparison
Compared to VMBS (Vanguard Mortgage-Backed Securities ETF), MBB offers a similar exposure to agency MBS but with a slightly higher expense ratio (0.04% vs. 0.03%). However, MBB tends to have greater liquidity due to its larger asset base. Unlike actively managed MBS funds like MBSD (FlexShares Disciplined Duration MBS ETF), MBB follows a passive strategy, avoiding the potential for manager-driven deviations from the index. Both MBB and GNMA (iShares GNMA Bond ETF) focus on government-backed securities, but GNMA specifically targets Ginnie Mae securities, which carry an explicit U.S. government guarantee.
Issuer Overview
iShares, a division of BlackRock, is the largest ETF provider globally, known for its extensive range of index-tracking funds. The firm is recognized for its robust product lineup, strong liquidity, and competitive expense ratios. iShares ETFs are widely used by both institutional and individual investors for their transparency and reliability.
Conclusion
The iShares MBS ETF (MBB) is a well-established fund offering investors access to U.S. government-backed mortgage securities with relatively low risk. Its focus on agency MBS, combined with iShares' strong reputation, makes it a solid choice for fixed-income investors seeking stable income and capital preservation. While it carries interest rate and prepayment risks common to MBS investments, its government backing provides a layer of security that appeals to conservative portfolios.
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