Financial markets are always buzzing with investors looking to increase their investments and diversify their portfolios to minimize risk. In line with this trend, IFP Advisors Inc recently revealed that he increased his holdings of the iShares MBS ETF (NASDAQ:MBB) by 51.4% during the fourth quarter.
IFP Advisors Inc purchased an additional 8,211 shares of the iShares MBS ETF in the fourth quarter for a total holding of 24,181 shares, according to a Securities and Exchange Commission disclosure. The value of these holdings was a whopping $2,596,000 at the end of the reporting period.
This move by IFP Advisors Inc is commendable as it represents a keen understanding of the inner workings of the market. Investing in fixed income exchange-traded funds (ETFs) like iShares MBS is highly profitable for several reasons. For example, fixed income ETFs tend to be more stable than other investment options. In addition, it provides a stable source of income through interest payments returns.
Additionally, investing in fixed income ETFs such as iShares MBS is a smart way to hedge against inflation risk as most bonds carry fixed interest rates that do not change with changes in the inflation rate. This feature makes it an excellent choice for conservative investors looking to secure future returns while minimizing volatility.
It’s no surprise that financial advisors like IFP Advisors Inc are choosing to invest more in fixed income ETFs like iShares MBS because of the many benefits. As more investors become aware of these benefits offered by fixed income ETFs over other investment options, we can expect more companies and individuals to follow suit soon.
In conclusion, this recent development highlights investment savvy among financial advisors such as IFP Advisors Inc who are exploring alternative routes that can enhance profitability beyond traditional investment options. We look forward to further disclosures on portfolios, strategies and market insights from IFP Advisors Inc and other investment firms in the coming months.
Investment Insights: iShares MBS ETF – Fund Performance and Recent Institutional Survey
The iShares MBS ETF, formerly known as the iShares Barclays MBS Bond Fund, is an Exchange Traded Fund (ETF) that invests in mortgage-backed securities issued by the Government’s National Mortgage Association (GNMA). With a market capitalization of $19.73 billion, it is one of the world’s largest and most successful investment funds.
Recently, several large investors changed their iShares MBS ETF holdings. Envestnet Asset Management Inc., Charles Schwab Investment Management Inc., Jane Street Group LLC, Truist Financial Corp and Royal Bank of Canada all increased their stakes in the fund. These institutional investors now own more than his three-quarters of the company’s shares.
Despite these recent investments, investors may need to be aware of current trends before considering the iShares MBS ETF. As of May 18, 2021, the NASDAQ MBB opened at $93.70, hitting a 12-month low of $88.00 and a high of $100.61. The 50-day moving average is $94.70 and the 200-day moving average is slightly lower at $94.42.
The Fund’s objective is to match the price and yield performance of the Barclays Capital US MBS Index (Index). The index measures the performance of investment grade pass-through mortgage-backed securities issued by the GNMA.
In conclusion, considering the iShares MBS ETF may be beneficial for those wishing to invest in GNMA-issued mortgage-backed securities indirectly through exchange-traded funds with good track records. However, potential investors should assess current market trends and seek guidance from financial professionals before jumping into this or any other similar investment opportunity. Always think carefully about your finances.