Schwab Mortgage-Backed Securities ETF, the VanEck Mortgage-Backed Securities ETF, offers a 5.23% yield at a minimal 0.03% TER, with a discounted portfolio and low credit risk. Despite an 11-point pull-to-par potential, current mortgage rates limit near-term price appreciation and prepayment-driven gains. Agency MBS in SMBS provide a positive illiquidity premium over Treasuries and should outperform corporate credit in slowdowns or shocks.