SMBS

Schwab Mortgage-Backed Securities ETF

$25.67

+0.00%

Market closed. Last update: 12:36 PM ET

📎 Investment Objective

The Schwab Mortgage-Backed Securities ETF (SMBS) seeks to track the performance of the Bloomberg U.S. MBS Index, which measures the performance of the U.S. agency mortgage-backed securities market.

Overview

ETF tracking Schwab Mortgage-Backed Securities ETF

Category Real Estate

Issuer Charles Schwab

Inception Date 2024-11-19

Market Cap $5.5B

Average Volume N/A

Dividend Yield 4.01%

52-Week Range $24.59 - $25.97

VWAP $25.68

Performance

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Investment Summary

📎 Investment Objective

The Schwab Mortgage-Backed Securities ETF (SMBS) seeks to track the performance of the Bloomberg U.S. MBS Index, which measures the performance of the U.S. agency mortgage-backed securities market.

🎯 Investment Strategy

The ETF invests in a representative sample of mortgage-backed securities issued by government-sponsored enterprises such as Fannie Mae, Freddie Mac, and Ginnie Mae. The fund aims to provide exposure to the overall U.S. agency mortgage-backed securities market.

✨ Key Features

Broad exposure to the U.S. agency mortgage-backed securities market
Low-cost index-based approach with a 0.00% expense ratio
Potential for income generation through mortgage-backed securities
Diversification benefits as a fixed income investment

⚠️ Primary Risks

Interest rate risk: Mortgage-backed securities are sensitive to changes in interest rates, which can affect their value and total returns
Prepayment risk: Homeowners may refinance or pay off their mortgages earlier than expected, impacting the fund's cash flows
Credit risk: The fund is exposed to the creditworthiness of the government-sponsored enterprises that issue the mortgage-backed securities
Liquidity risk: The mortgage-backed securities market may experience periods of reduced liquidity, which can impact the fund's ability to sell holdings

👤 Best For

This ETF may be suitable for investors seeking exposure to the U.S. agency mortgage-backed securities market as part of a diversified fixed income allocation. It may be particularly appealing to investors looking for a low-cost, passively managed option to gain exposure to this segment of the bond market.