MTBA
Simplify MBS ETF
📎 Investment Objective
The Simplify MBS ETF (MTBA) seeks to provide exposure to the mortgage-backed securities (MBS) market, which consists of debt securities backed by residential and commercial mortgages.
Overview
ETF tracking Simplify MBS ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Simplify MBS ETF (MTBA) seeks to provide exposure to the mortgage-backed securities (MBS) market, which consists of debt securities backed by residential and commercial mortgages.
🎯 Investment Strategy
The fund aims to achieve its objective by investing primarily in MBS issued or guaranteed by government agencies or government-sponsored enterprises, such as Ginnie Mae, Fannie Mae, and Freddie Mac. The fund's portfolio is actively managed to maintain a targeted duration and yield profile.
✨ Key Features
- Provides exposure to the MBS market, which can offer diversification benefits for a portfolio
- Actively managed to maintain a targeted duration and yield profile
- Low expense ratio of 0.00%
- Limited performance history due to the fund's recent inception
⚠️ Primary Risks
- Interest rate risk: The value of MBS may decline when interest rates rise
- Prepayment risk: Homeowners may refinance or pay off their mortgages earlier than expected, affecting the fund's returns
- Credit risk: The risk that the issuers of the MBS held by the fund may default on their obligations
- Liquidity risk: The MBS market may experience periods of reduced liquidity, which could affect the fund's ability to sell its holdings
👤 Best For
The Simplify MBS ETF may be suitable for investors seeking exposure to the MBS market as part of a diversified fixed-income portfolio. Investors should have a medium-term investment horizon and be comfortable with the risks associated with MBS investments.