SPMB Profile
The SPDR Portfolio Mortgage Backed Bond ETF is an exchange-traded fund that aims to provide investment results that closely align with the performance of an index consisting of U.S. agency mortgage-backed securities. The fund generally invests at least 80% of its total assets in securities that are components of the index or in securities that exhibit economic characteristics substantially identical to those of the index components. This strategy ensures that the ETF's performance remains closely tied to the index it tracks, which focuses on U.S. agency mortgage pass-through securities.
The index tracked by the ETF is designed to measure the performance of mortgage-backed securities issued by U.S. government agencies. These securities, known as mortgage pass-throughs, are structured to provide investors with regular income derived from the underlying pool of residential mortgages. The ETF's focus on this segment of the bond market provides exposure to high-quality, investment-grade securities with underlying guarantees from U.S. government agencies, which helps to mitigate credit risk.
Managed to closely replicate the performance of the index, the ETF invests in a broad range of mortgage-backed securities issued by agencies such as Ginnie Mae, Fannie Mae, and Freddie Mac. The fund's management involves ongoing adjustments to its portfolio to ensure alignment with the index's composition and to adapt to changes in the mortgage-backed securities market. By holding a diverse set of these securities, the ETF aims to offer investors a stable source of income and exposure to the broader U.S. housing market.
Listed on major stock exchanges, the SPDR Portfolio Mortgage Backed Bond ETF offers liquidity and transparency, allowing investors to trade shares throughout the trading day at market prices. The fund's detailed performance data, holdings, and other key metrics are updated regularly, providing investors with the information needed to make informed decisions based on current market conditions and interest rate trends.
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