MBB vs TSEC: Grades, Fees and Holdings Compared

iShares MBS ETF

MBBANasdaq

Touchstone Securitized Income ETF

TSECCNYSE Arca

Overlap

No data

Expense ratio

MBB −0.36pt a year

MBB0.04%TSEC0.40%

Avg volume · 30D

MBB 92.5×the volume

MBB4.23MTSEC45.7K

3Y return · a year

TSEC +0.4pt

MBB+6.3%TSEC+6.7%

MBB vs TSEC Performance

Oct 31, 2025 – Oct 30, 2026

+0.6%MBB+3.2%TSEC

Expense ratio: MBB 0.04%, better; TSEC 0.40%
Fund size: MBB $35.9B; TSEC $171M
1Y total return: MBB +0.6%; TSEC +3.2%, better
Yield (12M): MBB 4.42%; TSEC 7.49%, better
Holdings: MBB 10814; TSEC 142
Avg volume (30D): MBB 4.23M sh, better; TSEC 45.7K sh
NAV per share: MBB $91.96; TSEC $25.03
52W range

ETF.net Grade

Pillar letters and Scores for MBB, TSEC, with each pillar’s weight
Pillar	MBB	TSEC
Cost30% weight	A94Higher	C44
Mission25% weight	B56Higher	F8
Risk15% weight	D34	A85Higher
Tradability15% weight	A89Higher	D25
Holdings10% weight	A77Higher	B58
Durability5% weight	A92Higher	C47

Rank among Mortgage-Backed Securities funds

How we build Categories ›

Same Category. MBB and TSEC are both graded against the same 24 Mortgage-Backed Securities funds, so their Grades compare head to head.

Mortgage-Backed Securities⁠

Category · 24 funds

See all 24 ›

MBB ranks 2nd and TSEC 17th of 24 funds in the Mortgage-Backed Securities Category.

Rank 1ASPMBState Street SPDR Portfolio Mortgage Backed Bond ETFScore 75
Rank 2AMBBiShares MBS ETFScore 73
Rank 3AVMBSVanguard Mortgage-Backed Securities ETFScore 72
Rank 16CMTGPWisdomTree Mortgage Plus Bond FundScore 40
Rank 17CTSECTouchstone Securitized Income ETFScore 39
Rank 18DCAAAFirst Trust AAA CMBS ETFScore 35

Our read on each fund

ETF.net Research

MBBAiShares MBS ETF

TSECCTouchstone Securitized Income ETF

In short

MBB Launched in 2007, MBB is the plain-vanilla way to own U.S. agency mortgage bonds: one of the biggest and busiest funds in a small niche, tracking the Bloomberg U.S. MBS Index for four basis points.

TSEC Most mortgage-bond ETFs are cheap index trackers stuffed with agency paper. TSEC goes the other way: an active book run by Fort Washington that roams the whole securitized market, from home and commercial mortgages to asset-backed deals and CLOs.

Stated mandate

MBB The fund seeks to track an index composed of U.S. agency mortgage-backed securities.

TSEC The Fund pursues combined income and capital growth, with a normal-market commitment of at least 80% of assets to securitized fixed-income securities.

Why people hold it

MBB Four basis points to rent the entire agency mortgage market, against a category median near 0.35%. In low-coupon bond land, that gap compounds quietly.
Scale is the real feature: one of the largest and most actively traded funds in the mortgage-bond category, which generally shows up as tighter spreads.
Pays monthly, and the mandate stays narrow: an index of U.S. agency mortgage-backed securities, nothing exotic bolted on.
Among the stronger builds in a thin peer group of mortgage-bond ETFs, on the combination of cost, trading friction and issuer staying power.

TSEC Hunts across the full securitized market: residential and commercial mortgages, asset-backed deals and CLOs, plus Treasuries and agency paper. Index rivals mostly stop at agency mortgages.prnewswire.com
Actively managed and sub-advised by Fort Washington, Touchstone's affiliated bond manager, with a fully transparent portfolio.westernsouthern.com prnewswire.com
Built around income and pays monthly, with at least 80% of assets committed to securitized fixed income.

Worth knowing

MBB This is one slice of the bond market. Agency mortgage paper only, with no Treasuries or corporates alongside it.
Mortgage bonds cut both ways with rates: borrowers refinance when yields fall and sit tight when they rise, so the portfolio's duration shifts underneath you.
On price it's a photo finish: SPMB tracks the same index at the same 0.04%, and VMBS runs a basis point cheaper.

TSEC Charges 0.73% a year against a category median near 0.35%. Index heavyweights VMBS and MBB run 0.03% and 0.04%.
Thinly traded next to the category's giants, so the gap between buy and sell prices can run wider.
The Bloomberg U.S. Aggregate is a yardstick here, not a target. This is a securitized-only book that can behave very differently from the broad bond market.westernsouthern.com

Full MBB profile⁠

Full TSEC profile⁠

MBB vs TSEC Holdings

How MBB and TSEC differ

No overlap figure

Two bond funds rarely hold the same issues.

Level by level

Countryby domicile94.2%
Asset classFixed Income100%

Sector

No Sector split for TSEC.

Country, concentration and asset class

Country by domicile

Country weights in MBB and TSEC, widest gap first
Country	More in MBBMore in TSEC	MBB	TSEC
United States	MBB +5.8 points	100.0%	94.2%
Cayman Islands	TSEC +5.8 points	0.0%	5.8%

Concentration

Weight in the 10 largest Holdings

MBB11.2%
TSEC24.9%

Securities held

MBB5,399
TSEC119

Asset class

MBB: Fixed Income
TSEC: Fixed Income

Holdings

Two bond funds rarely hold the same issues, so this page lists no shared Holdings. MBB holds 5,399 securities, TSEC 119.

All 10,833 MBB holdings⁠All TSEC holdings⁠

How we measure overlap

Each holding counts at its smaller weight in the two funds, summed over the full Holdings. Sector, country and asset class use the same rule on each fund’s split. Cash, FX and derivative lines stay out of the counts. Two bond funds get no overlap figure.

MBB vs TSEC Cost

Overpaying TSEC vs MBB

$7,241

On $10,000 over 30 years. 7% growth a year before fees, expense ratio only.

MBB 0.04%
$849
TSEC 0.40%
$8,090

Amount$10,000

Years30 years

Cost over time

MBB 0.04%
TSEC 0.40%
Overpaying

Year by year

Year	MBB	TSEC	Overpaying
10	$73	$723	$650
20	$288	$2,793	$2,505
30	$849	$8,090	$7,241

Expense ratio

0.04%MBB, cheaper
0.40%TSEC

MBB0.04%TSEC0.40%

0.03%0.86%

Middle half of Mortgage-Backed Securities funds
Median 0.38%

MBB 3rd cheapest of 24 funds

TSEC 15th cheapest of 24 funds

MBB vs TSEC Dividends

Last 12 months to Oct 30, 2026

Yield (12M): MBB 4.42%; TSEC 7.49%, better
Payout (12M): MBB $4.07; TSEC $1.88
Last payment: MBB $0.37; TSEC $0.15
Ex-dividend: MBB Oct 1, 2026; TSEC Oct 29, 2026
Paid on: MBB Oct 6, 2026; TSEC Oct 30, 2026
Frequency: MBB Monthly; TSEC Monthly

Distribution history

Per share, 2023 to 2026, same scale for both

MBBMonthly · 45 paymentsAll MBB payments⁠

TSECMonthly · 41 paymentsAll TSEC payments⁠

MBB vs TSEC Risk

Fall from peak · 5 years

This chart needs five years of history for both funds.

Risk facts

VolatilityStd dev, 3 years: MBB 6.4%TSEC 2.5%, better
Return per unit of riskSharpe ratio, 3 years: MBB 0.30TSEC 0.86, better
Worst fallMax drawdown, 5 years: MBB −16.8%TSEC −1.7%since Jul 2023
Market sensitivityBeta, 5 years: MBB 1.14TSEC 0.08; Market = 1

MBB and TSEC in the news

All news⁠

New ETFs
GMO's ETF share class costs more than the fund's $35 million Class III shares
Oct 22, 2026MBB
First-Year Review
Nuveen's securitized-income ETF returned 4.2% in year one, almost all from coupons
Sep 23, 2026MBB
News
Existing-home sales fall below 4 million as yields hit a 52-week high
Sep 10, 2026MBB
ETF Launch Alert
T. Rowe Price's TSCZ enters a crowded securitized-income sleeve at 0.20%
Sep 4, 2026TSEC

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MBB vs TSEC

In short

Stated mandate

Why people hold it