Angel Oak Mortgage-Backed Securities ETF

MBS

Börsenwert 187 Mio. $

Mortgage rates above 7% put AGNC, NLY, STWD and RITM in focus as funding costs, MBS spreads and hedging shape risks and opportunities.

The indexes most investors use to track the markets don't look the way they did just five years ago.

Mortgage-backed securities are seeing greater interest and just got a vote of confidence from the largest sovereign wealth fund. The Norges Bank Investment Management (NBIM), which oversees Norway's $2.3 trillion sovereign wealth fund, proposed cutting its government bond allocation and rotating into mortgage-backed securities (MBS).

Mortgage rates fall for a second week, potentially aiding EFC, NLY & AGNC as refinancing rises and lower rates support mortgage-market activity.

Agency mortgage-backed securities (MBS) are quietly coming off their best year since 2002 — climbing over 8.5%. So far, the macroeconomic backdrop of 2026 suggests last year's rally was far from a fluke.

Higher-for-longer interest rates and a new Federal Reserve chair confirmation are only adding to the market uncertainty in fixed income. With that, active management has almost become a necessity when navigating current and future credit cycles.

Passive aggregate bond strategies have long been default options for advisors and investors looking to defray risk in equity-heavy portfolios while adding a reliable income sleeve. However, many of the ETFs and index funds tracking the Bloomberg U.S. Aggregate Bond Index and other related benchmarks come with drawbacks some market participants overlook.

The Angel Oak Mortgage-Backed Securities ETF is indeed a standout for its "pure-play" focus on residential mortgage credit and its prime ticker symbol. As of early April 2026, the fund is navigating a volatile environment where geopolitical tensions (specifically the Iran conflict) have pushed Treasury yields up by 20–30 bps. With an effective duration of 5.7 years, MBS is more sensitive to rate hikes than short-term Treasury funds (like IEI), but it captures the "excess spread" from mortgages.

MBS focuses on AAA-rated mortgage-backed securities. It yields 5.1%, quite a bit higher than most bond ETFs, including most with similar credit quality. It is a bit expensive, but has managed to out-earn its expenses in the past.

Angel Oak's majority stake sale to Brookfield Asset Management is a major catalyst for the MBS ETF. The fund already performs at the top of its peer group on a total return basis. Through its IG non-agency RMBS holdings, MBS offers a unique opening for BAM in a higher-yielding asset sector.