The iShares Mortgage Real Estate Capped ETF (LMBS) is managed by BlackRock, one of the world's largest asset management firms. Established to achieve its investment objectives primarily by investing in mortgage-related debt securities and other mortgage-related instruments, LMBS aims to provide investors with exposure to the residential and commercial mortgage markets. This ETF primarily focuses on mortgage-backed securities (MBS), including residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), stripped mortgage-backed securities (SMBS), collateralized mortgage obligations (CMOs), and real estate mortgage investment conduits (REMICs). With an emphasis on mortgage-related investments, LMBS seeks to offer investors a way to potentially benefit from the returns associated with the mortgage market while managing interest rate risk.
While the primary objective of the iShares MBS ETF (LMBS) is not focused on dividend income, it does distribute dividends based on the performance of its underlying mortgage-related investments. These distributions typically occur on a regular basis, providing investors with a source of income. The eligibility for these dividends is determined by the interest and principal payments received from the pool of underlying mortgage assets, and the fund aims to maintain an effective duration of three years or less to manage price risk effectively. LMBS primarily invests in high-quality mortgage-backed securities but may allocate up to 20% of its net assets to securities of various credit qualities, including high-yield or unrated securities, to potentially enhance returns.
Tracking the performance of mortgage-related debt securities and other mortgage-related instruments is the primary objective of the Alternative Sources Mortgage Backed Securities ETF (LMBS). LMBS seeks to maintain at least 60% of its net assets invested in mortgage-related investments, focusing on residential and commercial mortgage-backed securities (RMBS and CMBS), stripped mortgage-backed securities (SMBS), and collateralized mortgage obligations (CMOs) tied to pools of mortgage loans. Additionally, the fund may allocate up to 40% of its assets to cash, cash equivalents, and non-mortgage direct obligations of U.S. government entities while limiting investments in non-government-backed Mortgage-Related Investments to 20% of its assets. LMBS also targets an effective duration of three years or less to manage price risk and may engage in mortgage dollar rolls and TBA transactions as part of its investment strategy. While primarily focused on investment-grade securities, LMBS has the flexibility to allocate up to 20% of its assets to securities of varying credit qualities, including high yield and unrated securities, to achieve its investment objectives.
The correlation aspect of the Legg Mason Mortgage Opportunities Fund (LMBS) is essential in understanding its behavior concerning mortgage-related debt securities and other mortgage-related instruments. As the fund primarily invests in residential and commercial mortgage-backed securities (RMBS and CMBS), its correlation with the performance of these markets is crucial for investors to anticipate potential returns and risks. Investors looking to study LMBS's correlations with various mortgage-related assets and sectors can utilize ETF Insider's web app for in-depth analysis, providing valuable insights and helping them make informed investment decisions.
The iShares Mortgage-Backed Securities ETF (LMBS) primarily invests in mortgage-related debt securities and other mortgage-related instruments, with a focus on residential and commercial mortgages. These investments include residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), stripped mortgage-backed securities (SMBS), collateralized mortgage obligations (CMOs), and real estate mortgage investment conduits (REMICs). LMBS may also allocate a portion of its assets to cash, cash equivalents, and non-mortgage securities issued or guaranteed by U.S. government entities. The fund aims to maintain an estimated effective duration of three years or less, reducing its sensitivity to interest rate changes, while potentially including high-yield and unrated securities to enhance returns.
The exposure characteristic of the First Trust Low Duration Mortgage Opportunities ETF (LMBS) is centered around the mortgage-related debt securities and instruments within its portfolio. LMBS primarily invests in mortgage-backed securities (RMBS and CMBS), stripped mortgage-backed securities (SMBS), collateralized mortgage obligations (CMOs), and real estate mortgage investment conduits (REMICs) tied to residential and commercial mortgages. These investments provide exposure to the U.S. mortgage market, allowing investors to participate in the income generated from mortgage payments and the potential price fluctuations of mortgage-related instruments.
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