MBB

The iShares MBS ETF (MBB) invests in U.S. agency mortgage‑backed pass‑through securities, primarily investment‑grade, fixed‑rate bonds issued or guaranteed by government‑sponsored entities such as Ginnie Mae, Fannie Mae and Freddie Mac. Its strategy is passive, seeking to track the Bloomberg U.S. MBS Index by holding a representative sample of the index’s securities and using to‑be‑announced (TBA) contracts that mirror the index’s economic characteristics. The fund provides exposure to the domestic mortgage‑backed securities market, offering regular income and a relatively low‑credit‑risk profile compared with corporate bonds. It is suitable for investors looking to add fixed‑income diversification, income generation, or a hedge against equity market volatility within a broader bond allocation.