The FlexShares Disciplined Duration MBS Index Fund (MBSD) tracks a proprietary index of mortgage-backed securities. MBSD’s particular twist is that it aims to keep duration within a range. Duration measures sensitivity to a change in interest rates. Bond prices typically fall when rates rise. The higher the duration, the more volatile the expected change.
MBSD invests in U.S.-dollar denominated mortgage-backed securities with terms ranging from 15 years to 30 years, but the index targets a composite portfolio duration between 3.25 years and 4.25 years. The index excludes some riskier types of mortgage debt, such as balloon mortgages, mobile home loans, graduated mortgage payments, and collateralized mortgage obligations.
MBSD’s secret sauce also means a significantly higher management fee than the ultra-low-cost competition. Is it worth it? Investors can compare MBSD to the iShares MBS ETF (MBB), the SPDR Portfolio Mortgage Backed Bond ETF (SPMB), or the Vanguard Mortgage Backed Securities ETF (VMBS).
| Segment | Fixed Income: U.S. - Government, Mortgage-backed Investment Grade |
| Category | Government, Mortgage-backed |
| Focus | Investment Grade |
| Niche | Broad Maturities |
| Strategy | Target Duration |
| Weighting Scheme | Proprietary |
This section compares how balanced and deep this ETF is relative to its peers.
| MBSD | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Number of Holdings | 418 | 1399 | 2816 |
| % of Assets in Top 10 | 20.63% | 28.46% | 29.59% |
| % of Assets in Top 15 | 27.56% | 36.30% | 37.10% |
| % of Assets in Top 50 | 60.04% | 66.82% | 66.59% |
| MBSD | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Large (>12.9B) | N/A | N/A | N/A |
| Mid (>2.7B) | N/A | N/A | N/A |
| Small (>600M) | N/A | N/A | N/A |
| Micro (<600M) | N/A | N/A | N/A |
This section compares the P/E ratio of this ETF to its peers.
This section compares the dividend yield of this ETF to its peers.
| MBSD | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Dividend | $ 0.06 | $ 0.15 | $ 0.12 |
| Dividend Date | 2023-09-01 | N/A | N/A |
| Annual Dividend Rate | $ 0.66 | $ 1.38 | $ 1.28 |
| Annual Dividend Yield | 3.29% | 3.42% | 2.94% |
View charts featuring MBSD price and volume data.
View charts featuring ETF fund flow data.
5 Day Net Flows: 0 1 Month Net Flows: -1 M 3 Month Net Flows: -1 M 6 Month Net Flows: -16.51 M 1 Year Net Flows: -34.79 M 3 Year Net Flows: -2.1 M 5 Year Net Flows: 16.86 M 10 Year Net Flows: 86.36 MView charts that break down the influence that fund flows and price had on overall assets.
5 Day Net AUM Change: -257.02 KThe adjacent table gives investors an individual Realtime Rating for MBSD on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETF Database Pro members, shows the ETF in the Mortgage Backed Securities with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETF Database Pro. To view information on how the ETF Database Realtime Ratings work, click here.
This section compares the cost efficiency of this ETF to its peers.
| Max ST Capital Gains Rate | 39.60% |
| Max LT Capital Gains Rate | 20.00% |
| Tax On Distributions | Ordinary income |
| Distributes K1 | No |
MBSD does not have an ESG score. There are no ESG themes that map to this ETF.
This section shows how this ETF has performed relative to its peers. Returns over 1 year are annualized.
| MBSD |
ETF Database
Category Average |
Factset Segment
Average |
|
|---|---|---|---|
| 1 Month Return | 0.19% | -0.18% | 0.16% |
| 3 Month Return | -1.29% | -1.99% | -2.12% |
| YTD Return | 0.30% | 0.40% | -0.07% |
| 1 Year Return | 0.50% | -0.14% | -0.22% |
| 3 Year Return | -3.47% | -2.72% | -3.57% |
| 5 Year Return | 0.27% | 0.10% | -0.13% |
The following charts reflect the geographic spread of MBSD's underlying holdings.
The following charts reflect the allocation of MBSD's underlying holdings.
| Asset | Percentage |
|---|---|
| Mortgage Backed Security | 99.07% |
| Other | 0.94% |
| Bond Sector | Percentage |
|---|
| Maturity | Percentage |
|---|---|
| Less Than 1 Year | 0.0% |
| 1-3 Years | 0.0% |
| 3-5 Years | 0.0% |
| 5-7 Years | 0.0% |
| 7-10 Years | 0.0% |
| 10-15 Years | 0.0% |
| 15-20 Years | 0.0% |
| 20-30 Years | 0.0% |
| 30+ Years | 0.0% |
| Asset | Percentage |
|---|---|
| Mortgage Backed Security | 99.07% |
| Other | 0.94% |
This section shows how the volatility of this ETF compares to the peer group ETF Database Category.
| 5 Day Volatility | 46.41% |
| 20 Day Volatility | 4.86% |
| 50 Day Volatility | 5.43% |
| 200 Day Volatility | 5.35% |
| Beta | 0.09 |
| Standard Deviation | 0.29% |
ETF Database's Financial Advisor Reports are designed as an easy handout for clients to explain the key information on a fund. Includes new analyst insights and classification data.
Fact sheets are issued by the ETF provider and framed by ETF Database. Information contained within the fact sheet is not guaranteed to be timely or accurate.
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