Is there a GNMA etf?
Is there a GNMA etf?
The iShares GNMA Bond ETF seeks to track the investment results of an index composed of mortgage-backed pass-through securities guaranteed by the Government National Mortgage Association (‘GNMA’ or ‘Ginnie Mae’).
What is a GNMA bond?
The Government National Mortgage Association (GNMA or Ginnie Mae) issues agency bonds backed by the full faith and credit of the U.S. government. MBS are commonly referred to as “pass-through” securities, as the principal and interest of the underlying mortgage loans “passes through” to the investor.
Does GNMA pay interest?
A Ginnie Mae pass-through security is similar to other mortgage-backed securities in that income is dependent on payments that mortgage holders make on their mortgages. The payments and interest are “passed through,” less a fee, to the security holder.
