Schwab Asset Management has introduced the Schwab Mortgage-Backed Securities ETF (SMBS US), offering cost-effective access to investment-grade mortgage-backed securities (MBS) guaranteed by US government agencies.
Schwab Asset Management is a leader in low-cost core portfolio ETFs.
The ETF, listed on NYSE Arca with an industry-leading expense ratio of just 0.03%, provides a compelling option for fixed income investors seeking high-quality core portfolio exposure.
MBS are debt securities backed by cash flows from pools of residential mortgage loans. These loans are originated by banks and other lenders and then securitized by government or quasi-government entities such as Ginnie Mae, Fannie Mae, and Freddie Mac.
Ginnie Mae guarantees timely payments and is backed by the full faith and credit of the US government, while Fannie Mae and Freddie Mac provide credit…
