On May 9th, 2023, reports stated that Lincoln National Corp has recently acquired a new position in the iShares MBS ETF (NASDAQ:MBB) during the fourth quarter. According to the company’s most recent disclosure with the Securities & Exchange Commission, Lincoln National Corp acquired 4,917 shares of the company’s stock valued at approximately $456,000.
The acquisition may come as a surprise to some investors who are not familiar with Lincoln National Corp and its investment tactics. However, upon closer inspection, it becomes clear that this move is part of a broader diversification strategy to mitigate risk while pursuing returns.
For those who are not well-versed in investment jargon, let us break down what all this means. MBB stands for iShares Mortgage-Backed Securities ETF. Essentially, MBB is an ETF that invests in mortgage-backed securities issued by Fannie Mae and Freddie Mac. These securities are considered relatively safe for investors due to their government backing and tend to pay out steady dividends over time.
Lincoln National Corp saw an opportunity to diversify its portfolio by adding MBB shares into the mix. By doing so, they have essentially spread their investments across multiple asset classes such as equities and fixed income securities like mortgage-backed securities.
This kind of strategy is common among investors who seek to reduce volatility within their portfolio while still generating steady returns. As markets ebb and flow over time, having diversity can ultimately lead to more sustainable performance over the long-term.
It is worth noting that every investor should be mindful of their own unique financial situation before making any investments. What works for one person may not work for another depending on their goals and personal circumstances.
In conclusion, while this news may seem perplexing to some at first glance, it is not all that surprising when taking into account Lincoln National Corp’s broader diversification strategies. As we move into an ever-changing financial landscape, it is important for investors to stay informed and make sound decisions that align with their own financial goals.
Institutional Investors Fuel Speculation on iShares MBS ETF: Is it Worth Investing In?
May 9, 2023 – iShares MBS ETF has recently caught the attention of several institutional investors, as evidenced by their recent position changes in the stock. Among them is Fairfield Bush & CO., which purchased a new position in the company during the first quarter valued at $33,000. This move has fueled speculation about the prospects of this ETF, prompting many to consider whether or not it may be worth investing in.
Synovus Financial Corp also raised its position in iShares MBS ETF by 3.8%, bringing its total shares to 14,266 valued at $1,453,000. Mackay Shields LLC went even further, raising its position by an astonishing 80%, bringing its total shares to 4,927 valued at $502,000. Moors & Cabot Inc. raised its position in the company by 9%, while Baird Financial Group Inc. raised its position by 15.8%. As a result of these combined moves, institutional investors now own more than three-quarters (77.56%) of iShares MBS ETF’s stock.
What is iShares MBS ETF and what does it do? Well, it is an exchange-traded fund (ETF) that seeks investment results which correspond to the price and yield performance of the Barclays Capital U.S. MBS Index (the Index). The Index measures the performance of mortgage-backed pass-through securities issued by the Government National Mortgage (GNMA).
Shares of NASDAQ MBB opened at $94.33 on Tuesday with a fifty-day simple moving average of $94.75 and a two-hundred-day simple moving average of $94.40. The twelve-month range for this stock stretches from a low point of $88.00 to a high point of $100.61.
The growing interest in this relatively new exchange-traded fund has sparked questions among investors about whether or not it might be worth investing in. The recent influx of institutional investments may signal that investors believe this ETF has significant potential and could offer solid returns in the coming months. Only time will tell if these beliefs are justified, but for those who want to jump on board early, now might be the time to take a closer look at iShares MBS ETF.
