Mortgage-backed securities provide similar risk to treasuries with higher yields
Mortgage-backed securities (MBS) are often overlooked by investors who favor U.S. treasuries or investment-grade corporate bonds.
MBS are collections of mortgages bundled by banks and sold to government-sponsored agencies, which guarantee these loans against credit losses.
The Vanguard Mortgage-Backed Securities ETF (NASDAQ: VMBS) is one way to invest in these bonds, offering a risk profile similar to that of U.S. Treasuries but with higher yields.