MBS: ANGEL OAK MORTGAGE-BACKED SECURITIES ETF
What this ETF is trying to do
The Angel Oak Mortgage-Backed Securities ETF (MBS) invests in mortgage-backed securities. These are bundles of home loans. Instead of owning a single loan, the ETF owns pieces of many different loans to spread out its exposure.
What the numbers show
As of October 5, 2026, the current price of one share is $8.16.
It is important to look at two different types of returns:
• Price Return: This measures only the change in the share price. The one-year price return is -6.75%.
• Total Return: This reflects the overall return, including the cash distributions paid to investors. The one-year total return is -1.56%.
To put the price change in perspective, the estimated price from roughly one year ago was $8.74. If an investor had put $10,000 into the ETF one year ago based on that estimated price, the value of those shares alone would be worth approximately $9,325 today, not including any cash distributions received.
Income and distribution explanation
This ETF is designed to provide regular income. It usually pays distributions monthly and has made 12 payments over the last year. The distribution yield is approximately 5.74%.
Beginners should remember that a high distribution yield alone can be misleading. While the ETF provides cash payments, those payments do not guarantee that the original investment (the principal) will stay the same or grow.
NAV erosion explanation
"NAV erosion" happens when the underlying value of an ETF's assets declines over time. StockValueFinder uses an erosion-risk score to measure this. This ETF has an erosion score of 75, which is labeled as "Mild price erosion." This is a measurement of risk, not a guarantee of how the fund will perform in the future.
Top Holdings
The ETF holds 70 different assets. Because the list is partial, we only see the Top Holdings (updated October 7, 2026). The largest holdings include:
• Federal Home Loan Mortgage Corp. 2.5% (6.34%)
• Federal Home Loan Mortgage Corp. 5% (6.33%)
• Federal National Mortgage Association 2% (5.59%)
• Federal National Mortgage Association 3% (5.22%)
• Cash Offset (4.86%)
Pros
• Provides regular monthly cash distributions.
• Diversified across many different mortgage-backed securities.
Cons
• The share price has declined over the last year.
• It has a "mild" erosion-risk score.
Beginner takeaway
The MBS ETF provides monthly income, but the share price has fallen recently. While the total return is higher than the price return because of the distributions, both figures were negative over the last year. Investors often care about principal stability, meaning they want their initial investment to stay intact while they collect income.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | FEDERAL HOME LOAN MORTGAGE CORP. 2.5% | n/a | 6.34% |
| 2 | FEDERAL HOME LOAN MORTGAGE CORP. 5% | n/a | 6.33% |
| 3 | FEDERAL NATIONAL MORTGAGE ASSOCIATION 2% | n/a | 5.59% |
| 4 | FEDERAL NATIONAL MORTGAGE ASSOCIATION 3% | n/a | 5.22% |
| 5 | CASH OFFSET | n/a | 4.86% |
| 6 | FEDERAL HOME LOAN MORTGAGE CORP. 6% | n/a | 4.06% |
| 7 | FEDERAL HOME LOAN MORTGAGE CORP. 5.5% | n/a | 4.01% |
| 8 | FEDERAL HOME LOAN MORTGAGE CORP. 2% | n/a | 3.25% |
| 9 | JP MORGAN MORTGAGE TRUST 2.5% | n/a | 2.62% |
| 10 | FEDERAL NATIONAL MORTGAGE ASSOCIATION 5% | n/a | 2.58% |