Regan Floating Rate MBS ETF Surpasses $100 Million in Assets
Regan Capital is excited to announce that its Regan Floating Rate MBS ETF (NYSE: MBSF) has crossed the $100 million mark in assets. This impressive milestone comes just six months after the fund's launch, showcasing the strong interest in this actively managed exchange-traded fund, which primarily focuses on floating rate Agency Residential Mortgage-Backed Securities (RMBS).
Why Consider MBSF?
MBSF presents a unique chance for investors to diversify their cash holdings while aiming for higher yields compared to typical Treasury bonds. This ETF enhances yield spreads by capitalizing on the potential alpha its portfolio can generate. The floating rate Agency RMBS included in MBSF are designed to provide both liquidity and steady income in today’s market environment.
Why Invest in MBSF Right Now?
Skyler Weinand, the chief investment officer and managing member of Regan Capital, points out that MBSF’s success comes at a pivotal moment when the Federal Reserve is adjusting interest rate policies significantly. These adjustments may limit yields on traditional government bonds and money market accounts. However, Agency RMBS could offer higher returns while maintaining lower credit risk, thanks to being backed by U.S. government agencies.
MBSF's Performance and What Lies Ahead
The flexibility of MBSF’s portfolio is noteworthy. Its floating rates are tied to the short-term Secured Overnight Financing Rate (SOFR), which allows the ETF to perform well in both rising and falling interest rate scenarios. Since its inception, MBSF has achieved a total return of 4.13% based on net asset value (NAV), demonstrating its capacity to deliver consistent returns even amid market fluctuations.
Regan Capital’s Proven Track Record
Regan Capital isn’t new to the investment field. The firm previously launched the Regan Total Return Income Fund (RCIRX) in 2020, which has consistently been awarded a 5-Star Morningstar Rating™ for its risk-adjusted returns. With the successful introduction of MBSF, Regan Capital showcases its commitment to delivering innovative investment strategies that cater to a variety of investor needs.
What Are Agency RMBS and Their Benefits?
This ETF specializes in a specific type of asset known as Agency RMBS. These are mortgage-backed securities that are issued or guaranteed by U.S. government-sponsored enterprises. Generally, these securities provide higher yields than government bonds, making them an appealing choice for investors looking for better returns in the current economic climate.
Performance Insights
As of the latest reports, MBSF has recorded a year-to-date NAV performance of 2.88%. This indicates the ETF's competency in navigating market challenges and strengthens investor confidence in its ability to generate value in various economic conditions.
About Regan Capital
Founded in 2011, Regan Capital, LLC is an SEC Registered Investment Adviser based in Dallas, Texas. The firm specializes in managing assets for a diverse array of clients, which includes endowments, foundations, insurance companies, and high-net-worth individuals. The expertise of Skyler Weinand and the team’s dedication to achieving outstanding results truly defines the firm’s investment approach.
Frequently Asked Questions
What is the Regan Floating Rate MBS ETF?
The Regan Floating Rate MBS ETF (NYSE: MBSF) is an actively managed exchange-traded fund that invests in floating rate Agency Residential Mortgage-Backed Securities.
How has MBSF performed since its launch?
Since its launch, MBSF has generated a total return of 4.13% based on NAV, showcasing its solid performance in the investment landscape.
Why should investors consider MBSF?
MBSF offers the potential for higher yields compared to traditional investments, along with liquidity and lower credit risk through its focus on Agency RMBS.
What are the advantages of floating rate securities?
Floating rate securities can adjust their interest payments based on benchmark rates, making them appealing during periods of rising interest rates.
Who is at the helm of Regan Capital?
Regan Capital is managed by Skyler Weinand, who has extensive experience in trading residential and consumer asset-backed securities.
