MBSX
Regan Fixed Rate MBS ETF
📎 Investment Objective
The Regan Fixed Rate MBS ETF (MBSX) seeks to provide exposure to fixed-rate mortgage-backed securities (MBS) issued by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac.
Overview
ETF tracking Regan Fixed Rate MBS ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Regan Fixed Rate MBS ETF (MBSX) seeks to provide exposure to fixed-rate mortgage-backed securities (MBS) issued by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac.
🎯 Investment Strategy
The ETF aims to track the performance of a benchmark index that consists of fixed-rate MBS. It invests primarily in MBS that are guaranteed by GSEs and have a fixed interest rate. The fund's portfolio is designed to provide similar interest rate risk and prepayment characteristics as the broader MBS market.
✨ Key Features
- Exposure to fixed-rate mortgage-backed securities issued by GSEs
- Seeks to track the performance of a benchmark MBS index
- Low expense ratio of 0.00%
- Relatively low volatility compared to other fixed income sectors
⚠️ Primary Risks
- Interest rate risk: The value of the fund's holdings may decline when interest rates rise
- Prepayment risk: Homeowners may refinance or prepay their mortgages, which can affect the fund's returns
- Credit risk: The risk that GSEs may not be able to meet their financial obligations
- Liquidity risk: MBS may be less liquid than other fixed income securities
👤 Best For
This ETF may be suitable for investors seeking exposure to the mortgage-backed securities market as part of a diversified fixed income portfolio. It may be particularly appealing to investors looking for relatively low-risk, low-cost exposure to the MBS sector.