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GNMAAX

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Analysis and statistics

  • Open
    1.5695$
  • Previous Close
    1.5695$
  • 52 Week Change
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  • Day Range
    0.00$
  • 52 Week High/Low
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  • Dividend Per Share
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  • Market cap
    --$
  • EPS
    --
  • Beta
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  • Volume
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About

GNMAAX.US represents a mutual fund focused on investing in mortgage-backed securities (MBS) guaranteed by the Government National Mortgage Association (GNMA), also known as Ginnie Mae. These securities are backed by pools of FHA, VA, and USDA mortgages, providing a level of credit safety due to the government guarantee. GNMAAX.US aims to provide current income by investing primarily in these mortgage-backed securities. The fund's performance is influenced by factors such as interest rate fluctuations, prepayment rates on the underlying mortgages, and the overall health of the housing market.

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Factors

Interest Rates: Rising interest rates generally decrease the value of GNMAAX.US as newly issued bonds offer higher yields, making older, lower-yielding bonds less attractive. Falling rates increase the value.

Mortgage Rates: Since GNMAAX.US invests in mortgage-backed securities, changes in mortgage rates directly affect its value. Lower mortgage rates lead to refinancing, reducing the lifespan of the mortgages and potentially lowering returns.

Prepayment Speed: Faster prepayment speeds (homeowners paying off mortgages early) can decrease returns, as principal is returned sooner than expected, which may need to be reinvested at lower rates. Slower speeds can increase returns.

Economic Conditions: A strong economy generally leads to higher interest rates and potentially faster prepayment speeds, affecting GNMAAX.US negatively. A weak economy might lead to lower rates and slower prepayments, benefiting it.

Inflation: Higher inflation can lead to higher interest rates, decreasing the value of GNMAAX.US. Lower inflation can have the opposite effect.

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