VMBS Stock Recent News

The Vanguard Mortgage-Backed Securities Index Fund ETF offers a diversified portfolio of Agency MBS bonds. The Agency MBS asset class is attractive due to the historic wide spreads on Agency MBS bonds versus Treasuries, particularly on the long side of the curve. The Vanguard Mortgage-Backed Securities Index Fund ETF experienced a deep drawdown in 2022 due to higher rates, but is expected to outperform going forward.

One of the things I like to do from time to time in my InvestorPlace galleries is to have fun with my stock or ETF selection. Whether talking about an interesting company name or memorable ticker ETFs, it reminds me of the people who choose horses when betting at racetracks based on the jockey's racing silks, etc.

The VMBS provides exposure to agency-MBS securities. Historically, MBS have provided modest returns and low volatility. However, 2022 was especially bad for the VMBS ETF due to the portfolio's 6.9-year duration.

Corporate bonds and real estate investment trusts (REITs) are two ways fixed income investors can obtain more yield in order to try to outpace inflation as the Federal Reserve looks towards more rate hikes. “Although there are a number of differences between REITs and bonds, there are also some similarities,” Yahoo!

After a strong run following the pandemic, home prices are starting to come back down to earth. Rising interest rates have been tamping down home prices, which have been putting off prospective home purchasers.

Weakness in the overall bond market and rising interest rates are hurting debt issues backed by mortgages, but this could be providing value opportunities for investors who are on the hunt for bargains in mortgage-backed securities (MBS). The U.S. Federal Reserve is offloading a number of assets it accumulated during the height of the pandemic [.