iShares MBS ETF offers a stable, income-generating real estate investment with 4.22% yield amid steady interest rates.

The iShares MBS ETF (MBB) is a bond fund investing in U.S. agency mortgage-backed securities, which survived the 2008 mortgage crisis due to government backing. Despite a 20% drop from 2021 to 2023 caused by rising interest rates, MBB remains a defensive investment with a 4.22% dividend yield and very low fees. Interest rates are expected to hold steady in 2026, making now a good time to accumulate shares before potential rate cuts in 2027. MBB offers around 40% upside potential by 2030, providing a solid income and portfolio ballast without the risks of private-label mortgage securities.