On Wednesday, Texas-based Optas Capital disclosed the sale of 37,650 shares of the iShares MBS ETF for an estimated $3.5 million during the third quarter.
What Happened
According to an SEC filing released on Wednesday, Optas, LLC reduced its holdings in the iShares MBS ETF (MBB -0.01%) by 37,650 shares during the quarter. The estimated transaction was valued at approximately $3.5 million based on the average unadjusted closing price for the quarter. After this sale, the fund reported holding 26,325 shares, worth $2.5 million.
What Else to Know
Optas' post-sale position in the iShares MBS ETF represents 0.4% of 13F assets under management, down from 0.9% in the previous quarter.
Top holdings after the filing:
- NYSEMKT:VTI: $73.8 million (10.4% of AUM)
- NYSEMKT:VOO: $59.1 million (8.4% of AUM)
- NASDAQ:GOOGL: $57.9 million (8.2% of AUM)
- NASDAQ:NVDA: $24.7 million (3.5% of AUM)
- NYSEMKT:VEU: $23.2 million (3.3% of AUM)
As of Wednesday morning, MBB shares were priced at $95.64, up 1% over the past year and trailing the S&P 500's nearly 16% gain.
The fund's total one-year return is about 3.4%.
ETF Overview
| Metric | Value |
|---|---|
| Price (as of October 14, 2025) | $95.64 |
| 1-year total return | 3.4% |
| Net Assets | $42.4 billion |
ETF Snapshot
- Investment strategy: Seeks to track the performance of the Bloomberg U.S. MBS Index by investing at least 80% of assets in component securities and TBAs with similar economic characteristics.
- Portfolio composition: At least 90% of assets are invested in fixed income securities included in the underlying index.
- The ETF offers daily liquidity and a competitive dividend yield for investors seeking income and stability.
iShares MBS ETF (MBB) is designed to closely track its benchmark index by holding a diversified portfolio of fixed income securities and TBAs that replicate the performance of the underlying index. The fund appeals to investors seeking income and stability, offering yield and daily liquidity through its ETF structure.
Foolish Take
Texas-based Optas Capital cut back its exposure to mortgage-backed securities last quarter, selling about $3.5 million worth of the iShares MBS ETF. The move trimmed the fund’s position to just 0.4% of its $589 million in reportable assets.
MBB, which tracks the Bloomberg U.S. MBS Index, offers broad exposure to agency mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae. Despite its defensive profile and 4% trailing yield, the ETF’s returns have lagged equities—up only about 3.4% over the past year—as investors rotated toward risk assets amid expectations of future rate cuts.
For Optas, the sale might signal its preference for equity-heavy exposure. Its top three positions—VTI, VOO, and Alphabet (GOOGL)—together make up over a quarter of its portfolio, emphasizing a growth-oriented bias. The MBS reduction may simply reflect profit-taking or a shift toward more liquid, broad-market holdings as yields stabilize and fixed-income spreads compress.
Glossary
ETF: Exchange-Traded Fund; a fund that trades on stock exchanges and holds a basket of securities.
13F AUM: Assets under management reported on SEC Form 13F, representing institutional investment holdings.
Dividend yield: Annual dividends paid by a fund or stock divided by its current price, expressed as a percentage.
Bloomberg U.S. MBS Index: A benchmark index tracking the performance of U.S. agency mortgage-backed securities.
Fixed income securities: Investments that pay regular interest, such as bonds or mortgage-backed securities.
TBA: "To Be Announced"; a forward contract to buy or sell mortgage-backed securities at a future date.
Underlying index: The benchmark index an ETF seeks to replicate or track with its portfolio.
Portfolio composition: The breakdown of types and proportions of assets held within a fund.
Market capitalization: The total market value of a company's or fund's outstanding shares.
Daily liquidity: The ability to buy or sell an investment on any trading day at market prices.
Component securities: The individual securities that make up an index or ETF portfolio.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
