Key stats
About FlexShares Trust FlexShares Disciplined Duration MBS Index Fund
Expense ratio
0.20%
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Inception date
Sep 3, 2014
ISIN
US33939L7799
MBSD tracks a proprietarily weighted index of MBSs to achieve and maintain an effective duration of 3.25-4.25 years. Unlike other conventional market-value-weighted broad MBS indexes with slow-moving durations, the fund provides predictability in interest-rate risk exposure. With explicit and implicit government guarantee, agency-backed MBSs carry negligible credit risk but higher yields due to prepayment risk. In combination, MBSD offers investors a unique exposure to generate higher income than Treasurys and with predictable interest-rate risk. Rebalancing is done on a monthly basis.
Classification
What's in the fund
Exposure type
Securitized
Bonds, Cash & Other100.00%
Securitized100.00%