: They provide exposure to the housing market and typically have a low correlation with corporate bonds or stocks. Critical Risks to Consider
Professional managers select a portfolio of pass-through securities. Widely available via brokerage accounts. Buying individual MBS (by CUSIP) through a broker. Harder for retail; high minimums often apply. Major Types of MBS
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: MBS offer limited potential for price growth compared to other assets like REITs. How to Buy MBS Description Accessibility ETFs
: Complex structures divided into "tranches" with varying risk levels, maturities, and payment priorities. 2026 Market Outlook : They provide exposure to the housing market
: Agency MBS often offer more attractive yields than U.S. government bonds while maintaining high credit quality.
Funds like the iShares MBS ETF (MBB) provide diversified exposure to thousands of mortgages. Best for retail investors. Buying individual MBS (by CUSIP) through a broker
: Unlike typical bonds that pay semi-annually, MBS provide monthly payouts derived from mortgage payments.