Overview
Investment-grade US agency mortgage-backed securities — the Fannie Mae, Freddie Mac and Ginnie Mae bonds that fund America's housing market.
Top Holdings
| Ticker | Holding | Weight |
|---|---|---|
| FNMA | Fannie Mae MBS | ~44% |
| FHLMC | Freddie Mac MBS | ~28% |
| GNMA | Ginnie Mae MBS | ~26% |
| — | Other agency | ~2% |
Fund Details
Investment Thesis
Agency mortgages are the second-largest bond sector in America after Treasuries, carrying effective government backing but yielding more because homeowners can refinance whenever it suits them — prepayment risk that investors get paid to bear. MBB is the standard one-ticket route into the sector and a large slice of what AGG and BND already hold; owning it directly is a deliberate overweight on the mortgage spread.
Who It's For
Income investors who want government-quality credit with extra yield and understand the prepayment trade-off. Best in tax-advantaged accounts; monthly payer.
10-Year History
| Year | Close | % Chg |
|---|---|---|
| 2016 | $101.50 | -- |
| 2017 | $101.20 | -0.3% |
| 2018 | $99.98 | -1.2% |
| 2019 | $103.68 | +3.7% |
| 2020 | $105.44 | +1.7% |
| 2021 | $102.70 | -2.6% |
| 2022 | $88.74 | -13.6% |
| 2023 | $90.24 | +1.7% |
| 2024 | $89.70 | -0.6% |
| 2025 | $91.14 | +1.6% |
| Year | Yield |
|---|---|
| 2016 | 2.10% |
| 2017 | 2.10% |
| 2018 | 2.30% |
| 2019 | 2.60% |
| 2020 | 2.20% |
| 2021 | 1.40% |
| 2022 | 1.20% |
| 2023 | 2.60% |
| 2024 | 4.10% |
| 2025 | 4.34% |
| Year | AUM | % Chg |
|---|---|---|
| 2016 | $10B | -- |
| 2017 | $11B | +10.0% |
| 2018 | $13B | +18.2% |
| 2019 | $15B | +15.4% |
| 2020 | $17B | +13.3% |
| 2021 | $19B | +11.8% |
| 2022 | $22B | +15.8% |
| 2023 | $25B | +13.6% |
| 2024 | $29B | +16.0% |
| 2025 | $33B | +13.8% |
Historical figures are ETFHub estimates modelled from asset-class return patterns and may differ from official fund records. Data as of August 2026.
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