"The ETF itself is a bond fund that tracks a market of investment-grade U.S. agency mortgage-backed securities, meaning pools of home loans packaged into bonds and issued or guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae."
"MBB gained in both 2007 and 2008 due to investors retaining their confidence in the agency guarantee itself, and then, in 2008, in the U.S. government's clear willingness to stand behind that market."
"If you look at MBB's chart, you'll notice a rather severe decline of 20% from 2021 to 2023, mainly due to interest rates rising and pressuring bond prices."
The iShares MBS ETF, which focuses on mortgage-backed securities, has shown resilience during economic downturns, particularly during the 2008 mortgage crisis. In 2026, the real estate market is expected to be stable, with no NINJA loans and reasonable housing prices. The ETF allows investors to gain exposure to agency mortgage markets, providing income from mortgage payments. Despite a decline from 2021 to 2023 due to rising interest rates, the ETF remains a strong investment option for those seeking stability in real estate.
Read at 24/7 Wall St.
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