Simplify MBS ETF

MTBA

시가총액 US$10.2억

The Simplify MBS ETF focuses on newly-issued agency mortgage-backed securities with high coupons. It sports a 6.0% dividend yield, backed by high-quality mortgages. Market conditions are quite favorable to MBS, with these securities outperforming treasuries and bonds for several years.

Simplify MBS ETF is downgraded from buy to hold due to compressed mortgage spreads limiting price upside. MTBA's structural carry remains attractive, offering a 6.01% yield over the last 12 months, supporting its role as an income component. The ETF's active management and 0.15% expense ratio are justified by its strategy but are significantly higher than passive peers.

Mortgages form the backbone of home affordability in America and represent an expense that cannot be cut without catastrophic household consequences. Utilities are in heavy demand, and operators can raise prices without losing customers. We discuss our top picks from these non-negotiable expenses, offering yields of up to 7.5%.

NEW YORK--(BUSINESS WIRE)--Simplify Asset Management announces that it expects to deliver capital gains distributions across ten ETFs.

The Simplify MBS ETF focuses on newly-issued agency mortgage-backed securities with high coupons. It sports a 6.0% dividend yield, backed by high-quality mortgages. Market conditions are quite favorable to MBS, with these securities outperforming treasuries and bonds for several years.

The Simplify MBS ETF offers active exposure to agency mortgage-backed securities, prioritizing newer, higher-coupon bonds for enhanced yield and prudent risk management. MTBA's flexible, non-indexed strategy leverages TBA contracts and dollar roll techniques to optimize carry and return, with a competitive net expense ratio of 0.17%. Current macro conditions—wider mortgage spreads, moderating real rates, and a recovering yield curve slope—support a constructive outlook for MTBA's carry and spread compression potential.

The investment case for closed-end funds (CEFs) is weak now due to tight discounts, high leverage costs, and expensive underlying assets. Most CEFs do not deliver sustainable alpha, and lower-fee actively managed ETFs now offer similar exposures with better economics. We have reduced our CEF allocation, favoring alternatives like BDCs, select ETFs, preferreds, and bonds for better value and risk/reward.

MTBA ETF invests at least 80% in mortgage-backed securities, primarily from GNMA, FNMA, and FHLMC, focusing on high-yield opportunities. Portfolio construction targets a 3-10 year effective duration, balancing yield with interest rate sensitivity and prepayment risk. MTBA currently offers a 6% annual yield, distributing $0.25 monthly.

We look at ways to achieve great income while also minimizing risk. Come alongside High Dividend Opportunities but through secondary opportunities. Less reward, lower risk, but still wonderful income.

On Wednesday, Simplify Asset Management launched its latest fund, the Simplify Kayne Anderson Energy and Infrastructure Credit ETF (KNRG). An actively managed fund, KNRG looks to offer income with a secondary objective of capital appreciation.