Mortgage-Backed Securities: The Case For Safety And 2% Yields

Ted

FYI: There aren’t a lot of great fixed-income options now that the Fed is talking about hiking rates, Treasuries are selling off and the rally in corporate credit has stalled.

One suggestion from the folks at LPL Financial is mortgage-backed securities (MBS), or bonds that are backed by pools of mortgages. These can be accessed through diversified government bond funds, specialized ginnie mae funds, such as Vanguard GNMA (VFIIX) or Fidelity GMNA (FGMNX), or an exchange-traded fund like iShares MBS ETF (MBB
Regards,
Ted
http://blogs.barrons.com/incomeinvesting/2016/05/20/mortgage-backed-securities-the-case-for-safety-and-2-yields/tab/print/

M* Snapshot VFIIX:
http://www.morningstar.com/funds/XNAS/VFIIX/quote.html

M* Snapshot FGMNX:
http://www.morningstar.com/funds/xnas/fgmnx/quote.html

M* Snapshot MBB:
http://www.morningstar.com/etfs/arcx/mbb/quote.html

Lipper Snapshot VFIIX:
http://www.marketwatch.com/investing/Fund/VFIIX

Lipper Snapshot FGMNX:
http://www.marketwatch.com/investing/Fund/FGMNX

VFIIX Is Ranked #2 In The (IB) fund Category By U.S. News & World FReport:
http://money.usnews.com/funds/mutual-funds/intermediate-government/vanguard-gnma-fund/vfiix

FGMNX Is Rand #1 In The (IB) Fund Category By U.S. News & World Report:
http://money.usnews.com/funds/mutual-funds/intermediate-government/fidelity®-gnma-fund/fgmnx

MBB Is Ranked #11 In The (IB) ETF Category By U.S. News & World Report:
http://money.usnews.com/funds/etfs/intermediate-term-bond/ishares-mbs/mbb

M* Intermediate Bond Fund Returns:
http://news.morningstar.com/fund-category-returns/intermediate-government/$FOCA$GI.aspx