See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Vanguard Mortgage-Backed Securities ETF (VMBS) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Vanguard Mortgage-Backed Securities ETF (VMBS) - free report >>
Image: Bigstock
Mortgage Backed Securities ETF (VMBS) Hits New 52-Week High
For investors looking for momentum, Vanguard Mortgage-Backed Securities ETF (VMBS - Free Report) is probably a suitable pick. The fund just hit a 52-week high, up roughly 6.3% from its 52-week low of $50.19/share.
But does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
VMBS in Focus
The fund seeks to replicate the performance of the Bloomberg Barclays U.S. MBS Float Adjusted Index. The product charges 7 bps in fees. The fund has amassed $10.5 billion in AUM.
Why the Move?
The Fed has enacted two rate cuts in the third quarter and is likely to enact one more in the upcoming October meeting. Probability of an October Fed rate cut rise following subdued manufacturing data. As of Oct 3, 2019, yield on benchmark treasury notes was 1.54% versus 1.65% yield noted on Oct 1. Low rate environment is great for mortgage-backed securities. As demand for residential and commercial real estate rises in the near future, mortgage financing companies are bound to see an increase in their asset books.
More Gains Ahead?
It seems VMBS might perform decently given a positive weighted alpha of 5.60. Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free>>