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What Are Mortgage-Backed Securities (MBS)?

By Matthew Frankel, CFPUpdated Aug 9, 2025 at 11:13 PM

Key Points

  • MBS pool mortgages into securities, providing investors diversified income streams.
  • MBS are now strictly regulated, involving high-rated, agency-originated loans only.
  • Invest in MBS through low-cost ETFs like Vanguard's VMBS for around 4.1% returns.

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