Looking for Government-Backed Debt outside of Treasury Notes?
Fixed income investors looking to safely diversify their portfolios beyond safe haven Treasury notes can opt for the Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS) . “Mortgage-backed securities (MBS) are debt obligations that represent claims to the cash flows from pools of mortgage loans, most commonly on residential property,” an Investor.gov article explained. “Mortgage loans are purchased from banks, mortgage companies, and other originators and then assembled into pools by a governmental, quasi-governmental, or private entity.
