MBSD
FlexShares Disciplined Duration MBS Index Fund
📎 Investment Objective
The FlexShares Disciplined Duration MBS Index Fund seeks to provide exposure to the U.S. agency mortgage-backed securities (MBS) market, with a focus on managing interest rate risk through disciplined portfolio duration management.
Overview
ETF tracking FlexShares Disciplined Duration MBS Index Fund
Performance
Price Chart
Investment Summary
📎 Investment Objective
The FlexShares Disciplined Duration MBS Index Fund seeks to provide exposure to the U.S. agency mortgage-backed securities (MBS) market, with a focus on managing interest rate risk through disciplined portfolio duration management.
🎯 Investment Strategy
The fund tracks the Barclays U.S. MBS Disciplined Duration Index, which is designed to provide exposure to agency MBS with a targeted duration profile. The portfolio manager adjusts the fund's duration in response to changes in interest rates and market conditions, aiming to mitigate the impact of interest rate fluctuations.
✨ Key Features
- Exposure to the U.S. agency mortgage-backed securities market
- Disciplined duration management to help manage interest rate risk
- Passively managed index fund structure
- Low expense ratio of 0.00%
⚠️ Primary Risks
- Interest rate risk: The fund's performance may be negatively impacted by rising interest rates
- Prepayment risk: Homeowners may refinance or prepay their mortgages, which could affect the fund's returns
- Credit risk: The fund is exposed to the creditworthiness of the underlying mortgage issuers
- Liquidity risk: The fund may experience reduced liquidity during periods of market stress
👤 Best For
This ETF may be suitable for investors seeking exposure to the U.S. agency mortgage-backed securities market with a focus on managing interest rate risk. It may be appropriate as a component of a diversified fixed-income portfolio, particularly for investors with a medium-term investment horizon.