GNDMA ETF is an exchange traded fund that invests in Government National Mortgage Association. There are few ETFs on the market that have any exposure to GNMA, one of the few ones on the market is Barclays MBS Bond Fund, with respectively 1,7% of holdings in GNMA 2 and 1,63% of holdings in GNMA 30 year TBA.
Barclays MBS Bond Fund (MBB)
Is iShares ETF that invests US in mortgage backed securities, and tries to get the price and yield performance prior to expenses and fees of these securities. The main holdings as of April 2011 were FNMA, FNMA TBA, GNMA2, GNMA 30 year TBA, FNMA,FHLMC, FNMA and FHLMC Gold 30 year TBA.
Currently there are 2 GNMA ETF alternatives in mutual funds out there:
GNMA ETF Alternative 1
Payden GNMA (PYGNX)
Payden GNMA is an investment that seeks have high returns together with maintaining the capital. Large majority of the fund is invested in NMA mortgage backed securities. These debts are backed by US government like many other mortgage loans. Payden GNMA is a non-diversified fund which does not have limits on maturity of its portfolio holdings. The recent top holdings of PYGNY were- GNMA, US Treasury Note, Payden Cash Reserves Money Market, GNMA 30 year TBA, GNMA CMO
GNMA ETF Alternative 2
USAA GNMA (USGNX)
This fund is similar to the previous one as the investment seeks stable returns and preservation of the principal. With over 600 million in net assets and 3000 $ minimum investment, USAA GNMA invests around 80% of its assets to GNMA- Government National Mortgage associtation).
