Fixed Income: U.S. - Government, Mortgage-backed Investment Grade

JMBS Top Performer Intra-day
Price $52.36
Today’s Change 0.23%
4:00pm 09/18/2019
MBB Bottom Performer Intra-day
Price $108.01
Today’s Change 0.04%
4:00pm 09/18/2019

ETF.com Insight

With 6 ETFs and over $29.85B in combined AUM, the Fixed Income: U.S. - Government, Mortgage-backed Investment Grade segment provides exposure to the U.S. space with a focus on Investment Grade securities.

Year-to-date, the best-performing ETF in the segment is the Janus Henderson Mortgage-Backed Securities ETF (JMBS), with a total return of 5.56%. Meanwhile, the most popular ETF is the iShares MBS ETF (MBB) with $18.87BB in assets under management.

Investors should take a look at the Vanguard Mortgage-Backed Securities ETF (VMBS). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. VMBS tracks a market weighted index of mortgage-backed securities. VMBS has an expense ratio of 0.07% and tracks the Bloomberg Barclays U.S. MBS Float Adjusted Index.

ETF.com Efficiency Insight

The average efficiency score in the Fixed Income: U.S. - Government, Mortgage-backed Investment Grade segment is 91 out of 100, with the iShares MBS ETF(MBB) obtaining the highest rating of 97 out of 100.

Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.15% per year, with the SPDR Bloomberg Barclays Mortgage Backed Bond ETF (MBG) having the lowest expense ratio, charging investors 0.06% yearly.

Investors should look for funds with tight tracking, such as the iShares MBS ETF (MBB), with a 12-month median tracking difference of -0.06%.

Tracking Difference (12 Month)

ETF.com Tradability Insight

The average tradability score in the Fixed Income: U.S. - Government, Mortgage-backed Investment Grade segment is 83 out of 100, with the iShares MBS ETF(MBB) obtaining the highest rating of 100 out of 100.

The iShares MBS ETF (MBB) is the undisputed segment leader when it comes to liquidity. The fund trades 98.94M in daily average volume. Investors should also find ample liquidity in the Vanguard Mortgage-Backed Securities ETF (VMBS), with $32.27M in daily dollar volume.

Use limit orders to trade funds such as the FlexShares Disciplined Duration MBS Index Fund(MBSD), due to their double-digit market spreads.

ETF.com/ Block Liquidity

MBB
5
4
3
2
1
VMBS
5
4
3
2
1
MBG
5
4
3
2
1
GNMA
5
4
3
2
1
JMBS
5
4
3
2
1
MBSD
5
4
3
2
1
This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

The Bloomberg Barclays U.S. MBS Index has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.

Investors trying to match a broad market exposure should pay attention to . This fund obtains a high Fit score and investors should capture market-like returns.

Other funds diverge from the market, by nature of their investment mandates; for example, follows a strategy and obtains a low Fit score compared with our neutral benchmark.

Index Methodology