iShares MBS ETF’s Process Pillar rating is Average, but a strong management team still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy gets an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight AAA rated bonds and government bonds compared with category peers. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

iShares MBS ETF earns an Average Process Pillar rating. Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. This fund tracks an index, which increases its process rating. Historical data, like Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. 

The investment strategy as stated in the fund's prospectus is: 

The investment seeks to track the investment results of the Bloomberg U.S. MBS Index composed of investment-grade mortgage-backed pass-through securities issued and/or guaranteed by U.S. government agencies.  The fund will invest at least 80% of its assets in the component securities of the underlying index and TBAs that have economic characteristics that are substantially identical to the economic characteristics of the component securities of the index and and the fund will invest at least 90% of its assets in fixed income securities of the types included in the underlying index that BFA believes will help the fund track the index.  

 This strategy's 12-month yield is 3.1%, higher than its average peer's 2.8%. In addition, it has a 3.2% 30-day SEC yield (a measure similar to yield-to-maturity). While a higher yield may deliver more income, it also tends to indicate higher credit risk. But that isn't always the case. Over the past 12 months, the average yield of the fund has been higher than the average yield of its Morningstar Category peers. The portfolio holds assets with a higher average surveyed credit quality of AAA, compared with the category average of AA, and it holds no non-investment-grade assets, similar to its peers' average. Strategies with lower credit risk can typically withstand market turmoil more effectively. In terms of long-term interest-rate risk, this strategy is on par with peers. The longer a strategy's duration, the more sensitive it is to shifts in interest rates. This fund, with a 6.1-year duration, is expected to gain 6.1% of its net asset value if interest rates drop by 1 percentage point, and vice versa.

Average

Process

iShares MBS ETF's strong fixed income team drives the strategy's Above Average People Pillar rating. There are two managers listed on the fund: Karen Uyehara, James Mauro. The team is well equipped, with an average of 12 years of portfolio management experience. Together, they manage a total of 107 strategies, with solid long-term prospects. The strategies average a Silver asset-weighted Morningstar Medalist Rating, indicating a position to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares MBS ETF

MBB tracks a market-weighted index of investment-grade mortgage pass-through securities. The index includes fixed and floating rate securities issued by GNMA, FNMA and FHLMC.

iShares MBS ETF is a low-risk MBS vehicle with numerous talking points in store. The fund invests in high-grade mortgages backed by U.S. government agencies. We think its distributions will be sustained. However, its price return prospects remain at a crossroads.

MBB ETF Is Not Your Typical MBS Vehicle

JPMorgan BetaBuilders Japan ETF

Invesco S&P 500 Low Volatility ETF

Higher rates are presenting opportunities. And as the stock rally broadens, investors get more choices of the best ETFs.

Money Manager Shares Sage Advice For Picking Best ETFs

iShares iBoxx High Yield Corporate Bond ETF

iShares Russell 2000 ETF

iShares Russell 3000 ETF

iShares iBoxx $ Investment Grade Corporate Bond ETF

iShares National Muni Bond ETF

iShares ESG MSCI USA Leaders ETF

SPDR Nuveen Bloomberg Municipal Bond ETF

iShares TIPS Bond ETF

iShares 20+ Year Treasury Bond ETF

Investors were net purchasers of fund assets for the second consecutive week, injecting a net $19.2 billion for the LSEG Lipper fund-flows week ended June 14. Equity ETFs witnessed net inflows for the third week in four, attracting a little more than $25.2 billion for the most recent fund-flows week. For the second week in a row, taxable fixed income ETFs experienced net inflows, taking in $4.4 billion this week.

U.S. Weekly FundFlows Insight Report: Nondomestic Equity ETFs Attract Their Largest Weekly Net Inflows On Record During The Fund-Flows Week

The matter of negative convexity of mortgage-backed securities remains the key consideration as far as betting on a potential rate reversal goes. We are beginning to see signs of wholesale disinflation and loosening of the job market, so we are getting closer to when the Fed will have an opening to reverse. But negative convexity reduces the appeal of iShares MBS ETF as an instrument to bet on the turnaround, even though it has the innate leverage to rate news due to longer duration.

MBB: Worse Than Long-Duration Bonds On Rate-Reversal Speculation

SPDR Bloomberg 1-3 Month T-Bill ETF

iShares MSCI EAFE ETF

iShares MSCI USA ESG Optimized ETF

iShares 7-10 Year Treasury Bond ETF

iShares Core S&P 500 ETF

iShares MSCI USA Quality Factor ETF

Vanguard Short-Term Corporate Bond ETF

Trading activity on the Tradeweb European ETF marketplace reached EUR 59.2 billion in March, while the proportion of transactions processed via Tradeweb's Automated Intelligent Execution (AiEX) tool was 82.7%. Fixed income and commodity-based ETFs saw net buying in March, with ‘buys' surpassing ‘sells' by 10 and six percentage points, respectively.

Tradeweb Exchange-Traded Funds Update - March 2023

We don't want to be alarmist, but there are fault lines in the real estate market in relation to the banking system, which has proven a little fragile lately. Issues in the real estate market are not going to be good for an existing portfolio of mortgages, as the refinancing ability would fall and the values of mortgages would decline.

MBB: Negative Convexity And Housing Market Create Concern

JPMorgan BetaBuilders MSCI US REIT ETF

Blackstone Group

iShares CMBS ETF

Direxion Daily Real Estate Bull 3x Shares

Direxion Daily Real Estate Bear 3x Shares

Fidelity MSCI Real Estate ETF

First Trust S&P REIT Index Fund

iShares Cohen & Steers REIT ETF

Indus Realty Trust Inc

iShares U.S. Real Estate ETF

Nuveen Real Estate Income Fund

Invesco KBW Premium Yield Equity REIT ETF

Life Storage

Neuberger Berman Real Estate Securities Income Fund Inc

US Diversified Real Estate ETF

Public Storage

Invesco Active US Real Estate

ProShares Short Real Estate

Cohen And Steers Total Return Realty Fund

Cohen & Steers Reit And Preferred Income Fund Inc

Cohen & Steers Quality Income Realty Fund

SPDR Dow Jones REIT ETF

Schwab U.S. REIT ETF

Seven Hills Realty Trust

Amid intensifying concerns over the potential fallout from several major tech-focused bank failures, this report examines high-level REIT fundamentals to chart the likely path forward for the real estate industry. Real estate equities have been slammed particularly hard as investors draw parallels to the early stages of the 2008 financial crisis when locked-up credit markets created a cascade of distress.

This Time Is Different

AFC Gamma

AGNC Investment

Alexander's

Angel Oak Mortgage

Cherry Hill Mortgage

DigitalBridge Group

iPath Bloomberg Commodity Index Total Return ETN

Digital Realty Trust

Ellington Residential Mortgage REIT

Equinix

Innovative Industrial Properties

Orion Office REIT

Chicago Atlantic Real Estate Finance

iShares Mortgage Real Estate ETF

iStar Inc

SVB Financial Group

iStar

W. P. Carey

Financial Select Sector SPDR Fund

U.S. equity markets tumbled this week after the sudden collapse of a pair of technology-focused banks sparked concerns over financial stability and overshadowed a generally solid slate of employment data. Effectively erasing all of its gains for the year and posting its worst week since September 2022, the S&P 500 dipped 4.5% while the Mid-Cap and Small-Cap benchmarks plunged 7%.

Failure Fallout

American Tower

Crown Castle International

Dynex Capital

Equity LifeStyle Properties

Prologis

Real estate earnings season kicks into gear this week, and over the next month, we'll hear results from 175 equity REITs, 40 mortgage REITs, and dozens of housing industry companies. REITs enter earnings season with some momentum amid the recent moderation in interest rates and hopes of a 'softish' economic landing following a punishing year of stock price performance.

REIT Earnings Preview: The New Normal

iShares MSCI Japan ETF

iShares Core MSCI Emerging Markets ETF

iShares US Infrastructure ETF

iShares Interest Rate Hedged Long-Term Corporate Bond ETF

iShares Global Infrastructure ETF

Invesco S&P 500 Equal Weight ETF

In the fourth quarter of 2022, NorthCoast added an infrastructure ETF and a corporate bond ETF to its holdings. The post NorthCoast Takes On Corporate Bond And Infrastructure ETFs appeared first on Investor's Business Daily.

NorthCoast Takes On Corporate Bond And Infrastructure ETFs

MBB has pretty good YTMs relative to other similar credit quality fixed income ETFs, reflecting a discount from the category's past transgressions and GSE connection. However, the distribution yields are a little lackluster relative to Treasury ETFs.

MBB Gets A Discount For Past Transgressions In The Category

iShares Trust iShares 1-5 Year Investment Grade Corporate Bond ETF

iShares Core S&P Small Cap ETF

iShares Russell 1000 Value ETF

iShares 1-3 Year Treasury Bond ETF

iShares MSCI Global Agriculture Producers ETF

iShares MSCI USA Value Factor ETF

Hello! In this week's ETF Wrap, BlackRock's Gargi Chaudhuri, head of iShares investment strategy for the Americas, discusses ways for investors to play a world of higher rates and elevated inflation in 2023.

Where BlackRock sees ‘tremendous' market opportunities for ETF investors in 2023 after damage to stocks, bonds

Invesco S&P 500 Equal Weight Real Estate ETF

Hoya Capital Housing ETF

Pacer Benchmark Industrial Real Estate SCTR ETF

iShares U.S. Home Construction ETF

Invesco Real Assets ESG ETF

Janus Henderson Mortgage-Backed Securities ETF

Janus Henderson U.S. Real Estate ETF

First Trust Low Duration Opportunities ETF

VanEck Mortgage REIT Income ETF

Direxion Daily Homebuilders & Supplies Bull 3X Shares

NETLease Corporate Real Estate ETF

Nuveen Short-Term REIT ETF

Invesco Dynamic Building & Construction ETF

iShares Global REIT ETF

ALPS Active REIT ETF

iShares Residential Real Estate ETF

IQ US Real Estate Small Cap ETF

SPDR Portfolio Mortgage Backed Bond ETF

Global X SuperDividend REIT ETF

Pacer Funds Trust-Pacer Benchmark Data & Infrastructure Real Estate Sector ETF

iShares Core U.S. REIT ETF

Vanguard Mortgage-Backed Securities ETF

Vanguard Real Estate ETF

SPDR S&P Homebuilders ETF

Real Estate Select Sector SPDR Fund

Mortgage rates have not been this high since before the housing crisis. And while the housing market is slowing, prices are still high.

High Mortgage Rates And High Inflation

iShares U.S. Treasury Bond ETF

iShares Core High Dividend ETF

Invesco QQQ

iShares 0-5 Year High Yield Corporate Bond ETF

SPDR S&P 500 ETF Trust

Our fund-flows week kicked off Thursday, October 20, with bond yields rising and equity markets falling for the second straight day. The Russell 2000 fell 1.24% as the 10-year Treasury yield rose 2.35%.

U.S. Weekly FundFlows Insight Report: Fixed Income And Equity Exchange-Traded Funds Report Their Fourth Straight Week Of Inflows

Mortgages are often variable rate, so MBB has survived the current rate hike regime pretty well. I don't think there's a realistic default risk across mortgages, lending standards are simply better than what they once were.

MBB Is Around Fairly Valued

MBB is an ETF tracking an index of fixed-rate mortgage pass-through securities. We assigned the ETF a Sell rating in February given our views on rates and spreads to treasuries.

MBB: The Fall Is Almost Over

MBB is an ETF tracking an index of fixed-rate mortgage pass-through securities.

MBB - More Pain To Come

iShares MSCI Brazil ETF

SPDR Gold Trust

KraneShares CSI China Internet ETF

Global X NASDAQ 100 Covered Call ETF

iShares MSCI EAFE Small-Cap ETF

SPDR S&P Dividend ETF

ProShares Short VIX Short-Term Futures ETF

Vanguard Total Stock Market ETF

For the first month in three, mutual fund investors were net purchasers of fund assets, injecting $44.6 billion into conventional funds for August. Fixed income funds (+$38.9 billion for August) witnessed net inflows for the sixteenth month in a row, while money market funds (+$23.8 billion) experienced net inflows.

Investors Prefer Large-Cap ETFs Over Large-Cap Funds In August

SPDR Bloomberg High Yield Bond ETF

Invesco KBW Bank ETF

SPDR S&P Regional Banking ETF

ProShares UltraPro QQQ

Industrial Select Sector SPDR Fund

Utilities Select Sector SPDR Fund

Health Care Select Sector SPDR Fund

During Refinitiv Lipper's fund-flows week ended August 11, 2021, investors were overall net purchasers of fund assets (including both conventional funds and ETFs) for the third consecutive week, accumulating $24.7 billion. Exchange-traded equity funds recorded $6.0 billion in weekly net inflows. This is the macro-group's third straight week of net inflows, and it returned a positive 0.83% on average.

U.S. Weekly FundFlows Insight Report: Reflation Trade Awakens, Financial/Banking ETFs Realize Largest Weekly Inflows Since May

iShares Core U.S. Aggregate Bond ETF

Vanguard Total Bond Market ETF

Vanguard Total International Bond ETF

Vanguard Short-Term Bond ETF

July's total traded volume on the Tradeweb European-listed ETF marketplace amounted to EUR 45.9 billion, while the proportion of transactions completed via Tradeweb's Automated Intelligent Execution (AiEX) tool was 73%. Total consolidated U.S. ETF notional value traded in July 2021 was a record USD 36.9 billion, beating the platform's previous best performance in March 2020 by USD 9.8 billion.

Tradeweb Exchange-Traded Funds Update - July 2021

Cleveland-Cliffs

Xtrackers USD High Yield Corporate Bond ETF

Taiwan Semiconductor Manufacturing

iShares Broad USD High Yield Corporate Bond ETF

Ken Fisher (Trades, Portfolio)'s Fisher Asset Management sold shares of the following stocks during the first quarter of 2021, which ended on March 31.

Fisher Asset Management Trims Several ETF Positions

Once again, investors were overall net purchasers of fund assets (including those of conventional funds and ETFs) for the second week in a row. They injected $15.8 billion for Refinitiv Lipper's fund-flows week ended November 18, 2020, as investors vacillated between elation over COVID-19 vaccine news from Moderna and Pfizer/BioNTech and despair because of the record rise of positive cases and announcements of new lockdowns.

U.S. Weekly FundFlows Insight Report: COVID-19 Vaccine Rally Keeps Fund Flows On The Plus Side For The Week

JPMorgan BetaBuilders Europe ETF

iShares MSCI Emerging Markets ETF

iShares Core MSCI EAFE ETF

Notional volume executed on the Tradeweb European-listed ETF marketplace reached EUR 32.8 billion in October. Total consolidated U.S. ETF notional value traded in October 2020 amounted to USD 17.2 billion.

Tradeweb Exchange-Traded Funds Update - October 2020

There's been much talk lately about what opportunities can arise in the capital markets should a “blue wave” or Democratic majority take over the White House this November. From clean energy to infrastructure, there are many opportunities in fixed income municipal bond exchange-traded funds (ETFs).

Exciting Times Ahead for This Municipal Bond ETF

MBB Is A Reasonable Cash Substitute

News for iShares MBS ETF ETF (MBB)