"The Janus Henderson Mortgage-Backed Securities ETF (NYSE:JMBS) offers retirees a monthly income stream with a 5.04% yield, positioning itself as a compelling alternative to traditional bond funds. Unlike equity-based income strategies that expose investors to market volatility, JMBS generates its yield from coupon payments on agency and investment-grade mortgage-backed securities. These are pools of residential mortgages, primarily backed by Fannie Mae and Freddie Mac, providing an additional layer of security."
"The ETF's income comes from homeowners making monthly mortgage payments. As these payments flow through to the fund, JMBS distributes them to shareholders as monthly dividends. This structure creates predictable cash flow that retirees can count on, with the fund maintaining an unbroken payment history since its 2018 inception. JMBS has demonstrated remarkable dividend resilience through varying interest rate environments."
JMBS delivers a 5.04% yield by investing in agency and investment-grade mortgage-backed securities backed primarily by Fannie Mae and Freddie Mac. The fund receives homeowners' monthly mortgage payments and passes them to shareholders as monthly dividends, creating predictable cash flow and an unbroken payment history since 2018. Professional active management with a 0.22% expense ratio targets higher yield and dividend stability. Agency backing removes most credit risk, while elevated mortgage rates reduce prepayment and refinance incentives, supporting income resilience. JMBS positions itself as an alternative to traditional bond funds for retirees seeking reliable monthly income.
Read at 24/7 Wall St.
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