At a glance
CMBS charges 0.25% a year, below the 0.29% average of the 7 funds most like it (the 4th cheapest of 8). It has $472.9M in assets, the 7th largest of that group; it paid 3.75% of its price in distributions over the past 12 months, monthly. Over the past year it returned +0.4% with distributions reinvested, 4th of those 8 funds; over three years it returned +5.9% a year. At its worst it fell 8.9% in the 2020 crash (S&P 500: 33.7%) and 12.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 24 months after the lows. Its ten largest positions make up 9.2% of the fund, out of 464 in all.
The short version
iShares CMBS ETF (CMBS) is a BlackRock index fund that tracks the Bloomberg U.S. CMBS (ERISA Only) Index. It holds investment-grade commercial mortgage-backed securities, which are bonds backed by loans on apartment buildings, offices and other commercial property. It pays income monthly, with a trailing yield of 3.75% as of October 27, 2026. Its 0.25% expense ratio is close to the 0.29% peer average but well above larger mortgage-bond ETFs such as MBB, at 0.04%.
Price history
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CMBS +0.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| CMBS official prospectus, to Dec 31, 2025 | — | +7.38% | — | +0.57% | +2.50% | — |
| Bloomberg US Universal Index index, same period | — | +7.58% | — | +0.06% | +2.44% | — |
| CMBS price data to Oct 27, 2026 | 0.0% | +0.4% | +5.9% | +0.8% | +2.0% | +2.3% |
- Over the year to Oct 27, 2026, CMBS returned +0.4%, 4th of 8 among similar funds.
- Its 5-year annualized return was +0.8% and its 10-year +2.0%.
- In the 2020 COVID crash it fell 8.9% and regained its old high 4.6 months after the low.
- Its worst full calendar year was 2022 (-11.2%); its best was 2019 (+7.9%).
- The deepest fall in its price history was 15.8% (Jul 20, 2021 to Nov 3, 2022), recovered by Aug 4, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.0% | — |
| 2025 | +7.7% | +7.38% |
| 2024 | +4.3% | +4.52% |
| 2023 | +5.0% | +4.93% |
| 2022 | -11.2% | -11.18% |
| 2021 | -1.8% | -1.65% |
| 2020 | +7.8% | +7.84% |
| 2019 | +7.9% | +8.03% |
| 2018 | +0.8% | +0.59% |
| 2017 | +3.0% | +3.07% |
| 2016 | +3.1% | +3.04% |
| 2015 | +1.2% | — |
| 2014 | +2.4% | — |
| 2013 | +0.6% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 3.1% over that stretch · deepest drop along the way 8.9%, back to its old high 4.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 12.1% over that stretch · deepest drop along the way 12.4%, back to its old high 23.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.3400 | |
| 2025 | $1.7000 | +7.6% |
| 2024 | $1.5800 | +13.7% |
| 2023 | $1.3900 | +13.0% |
| 2022 | $1.2300 | -5.4% |
| 2021 | $1.3000 | -16.7% |
| 2020 | $1.5600 | +7.6% |
| 2019 | $1.4500 | +7.4% |
| 2018 | $1.3500 | +4.7% |
| 2017 | $1.2900 | +10.3% |
| 2016 | $1.1700 | +1.7% |
| 2015 | $1.1500 | +4.5% |
| 2014 | $1.1000 | +6.8% |
| 2013 | $1.0300 |
What's inside
As of Jul 31, 2026, the fund held 464 securities; the ten largest made up 9.18% of assets.
| Holding | Weight | |
|---|---|---|
| FHLMC Multifamily Structured Pass Through Certs. Mortgage-backed securities | 1.25% | |
| FHLMC Multifamily Structured Pass Through Certs. Mortgage-backed securities | 1.13% | |
| FHLMC Multifamily Structured Pass Through Certs. Mortgage-backed securities | 1.10% | |
| Fanniemae-Aces Mortgage-backed securities | 0.92% | |
| FHLMC Multifamily Structured Pass Through Certs. Mortgage-backed securities | 0.89% | |
| Fanniemae-Aces Mortgage-backed securities | 0.86% | |
| FHLMC Multifamily Structured Pass Through Certs. Mortgage-backed securities | 0.85% | |
| FHLMC Multifamily Structured Pass Through Certs. Mortgage-backed securities | 0.74% | |
| Barclays Commercial Mortgage Securities LLC Mortgage-backed securities | 0.72% | |
| FHLMC Multifamily Structured Pass Through Certs. Mortgage-backed securities | 0.71% | |
| FHLMC Multifamily Structured Pass Through Certs. Mortgage-backed securities | 0.71% | |
| FHLMC Multifamily Structured Pass Through Certs. Mortgage-backed securities | 0.69% | |
| CSAIL Commercial Mortgage Trust Mortgage-backed securities | 0.67% | |
| BMO Mortgage Trust Mortgage-backed securities | 0.63% | |
| FHLMC Multifamily Structured Pass Through Certs. Mortgage-backed securities | 0.62% |
By country
United States 98.8%By issuer
US government-sponsored enterprises 53.21%Companies 45.59%The bonds mature in 16.2 years on average (weighted by size), with an average coupon of 3.58%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $2.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.08%, +0.14%, -0.40%.
How it works
The fund tracks the Bloomberg U.S. CMBS (ERISA Only) Index. The index holds only commercial mortgage-backed securities that qualify under ERISA, the federal law that governs many workplace retirement plans. In practice, that means certificates first in line to get principal back and rated in one of the top three categories by Fitch, Moody's or S&P. Deals must have at least $300 million outstanding and $500 million at issue, and each slice (tranche) must be at least $25 million. Bonds need an expected life of at least one year and must pay a fixed rate or have a capped rate. Privately issued bonds, including Rule 144A deals, are excluded. Bloomberg sets the weights and updates the index on the last calendar day of each month.
BlackRock uses representative sampling. It buys a set of bonds that matches the index on duration (how sensitive prices are to interest rates), credit ratings and yield, rather than every bond. At least 80% of assets go into index bonds. Up to 10% can go into futures, options, swaps or other bonds. As of July 31, 2026, the fund held 464 bonds and no derivatives. About 53% came from government-sponsored enterprises and about 46% from companies. The largest position was a Freddie Mac Multifamily certificate at 1.25%, and the top ten made up 9.18%.
The fund usually handles creations and redemptions in cash. That can force it to sell bonds when big holders leave, which may produce taxable capital gains.
What it really costs
- CMBS charges 0.25% a year, versus an average of 0.29% for the similar funds below (4th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $26 in the first year and $318 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| CMBS | $26 | $80 | $141 | $318 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It pays monthly income from investment-grade commercial mortgage bonds, but its losses when rates rose make it a poor fit as a safe cash reserve.
CMBS may add monthly income from a part of the bond market tied to commercial property loans. Its trailing yield was 3.75% as of October 27, 2026. It launched in 2012, so it has no record from 2008. In the 2020 COVID crash it fell 8.9% over a few days in March and was back to its old high by late July. Rising rates hurt more. It lost 11.18% in 2022, its worst calendar year. Its deepest drop, 15.8% from July 2021 to November 2022, took about 33 months to recover, until August 2025. Anyone selling shares for income during that stretch would have been selling below the old high. Costs are 0.25% a year, or $26 in the first year on $10,000 under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income-focused investors who want monthly payouts from investment-grade commercial mortgage bonds, with a 3.75% trailing yield as of October 27, 2026.
- Bond investors adding commercial-property loan exposure, about 53% from Freddie Mac, Fannie Mae and other enterprises, alongside a core bond fund.
- Investors who want an index approach with a 16.2-year average maturity, shorter than the roughly 24-year averages of MBB and VMBS.
Look elsewhere if
- Cost-focused investors: the 0.25% expense ratio is several times higher than MBB's 0.04% and VMBS's 0.03%.
- Anyone who may need the money within a few years: its 15.8% drop that began in July 2021 took about 33 months to recover.
- Investors wanting a bigger, heavily traded fund: CMBS had about $473 million in net assets as of July 31, 2026, ranking 7th of 8 peers.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| CMBS this fund | 16.2 yrs | 0.25% | $472.9M | +0.4% | +5.9% |
| LMBS First Trust Low Duration Opportunities ETF | 19.4 yrs | 0.65% | $6.35B | +2.0% | +6.0% |
| LGOV First Trust Long Duration Opportunities ETF | 20.4 yrs | 0.66% | $619.4M | -4.0% | +5.5% |
| FSEC Fidelity Investment Grade Securitized ETF | 23.6 yrs | 0.36% | $4.64B | -0.7% | +6.4% |
| FTSD Franklin Short Duration U.S. Government ETF | 11.6 yrs | 0.25% | $293.9M | +2.2% | +4.7% |
| VMBS Vanguard Mortgage-Backed Securities ETF | 23.9 yrs | 0.03% | $17.59B | +1.0% | +6.6% |
| MBB iShares MBS ETF | 24.2 yrs | 0.04% | $39.63B | +0.2% | +5.6% |
| SPMB SPDR Portfolio Mortgage Backed Bond ETF | 24.9 yrs | 0.04% | $7.07B | -0.7% | +6.0% |
Questions investors ask
Does CMBS ETF pay monthly dividends?
Yes. The iShares CMBS ETF pays income monthly. Over the 12 months to October 27, 2026, it paid $1.79 per share, a trailing yield of 3.75%. The payments come from interest on the commercial mortgage bonds it holds, so they can change. The prospectus warns that income may fall when interest rates drop, or when bonds are repaid early and the fund has to reinvest at lower yields.
What's the difference between CMBS and LMBS?
LMBS, the First Trust Low Duration Opportunities ETF, was the closest match to CMBS by average maturity and issuer mix, but the two differ a lot. CMBS charges 0.25% a year, compared with 0.65% for LMBS. LMBS is much larger, with about $6.35 billion in net assets versus about $473 million as of July 31, 2026. LMBS returned 2% over one year to October 27, 2026, versus 0.4% for CMBS. Three-year returns were similar: 6% and 5.9%.
What is the expense ratio of the iShares CMBS ETF?
The expense ratio is 0.25%, all of it a management fee, according to the prospectus filed February 23, 2026. In the SEC's standard example, which assumes $10,000 invested and a 5% annual return, costs would come to about $26 after one year, $80 after three, $141 after five and $318 after ten. That is below the 0.29% average for similar funds, but well above MBB at 0.04% and VMBS at 0.03%.
How has CMBS ETF performed over 10 years?
Returns have been modest. As of December 31, 2025, the fund's average annual return was 2.5% over 10 years, 0.57% over 5 years and 7.38% over one year. Over the same periods, the Bloomberg US Universal Index returned 2.44%, 0.06% and 7.58%. Results by calendar year ranged from a gain of 8.03% in 2019 to a loss of 11.18% in 2022. Its best quarter gained 4.99% and its worst lost 5.58%.
Is CMBS a safe investment for retirees?
It isn't risk-free, although it holds only investment-grade bonds. Bond prices fall when interest rates rise, and the fund lost 11.18% in 2022. Its deepest drop, 15.8%, took about 33 months to recover, until August 2025. Borrowers on the underlying commercial mortgages can also default, especially in a downturn. Price swings have been mild: one-year volatility was 3.6% as of October 27, 2026. It may suit retirees who want monthly income and can live with multi-year drops.