WisdomTree Mortgage Plus Bond Fund

WisdomTree Mortgage Plus Bond Fund (MTGP) is an actively managed ETF that holds mainly government-backed mortgage bonds from Fannie Mae, Ginnie Mae and Freddie Mac. It can also put up to 20% in riskier securitized debt, including junk-rated bonds. It pays income monthly, with a 5.21% trailing yield as of October 27, 2026. However, its 0.46% expense ratio is far above the 0.03%–0.04% that VMBS and MBB charge, and its three-year return trailed both.

• Over the year to Oct 27, 2026, MTGP returned -1.0%, 6th of 8 among similar funds.
• Its worst full calendar year was 2024 (+2.5%); its best was 2025 (+7.6%).
• The deepest fall in its price history was 7.9% (Apr 6, 2023 to Oct 25, 2023), recovered by Dec 14, 2023.

As of May 31, 2026, the fund held 178 securities; the ten largest made up 22.42% of assets.

The bonds mature in 23.4 years on average (weighted by size), with an average coupon of 4.12%.

• Over the three months to May 31, 2026, investors withdrew a net $8.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -1.68%, +0.14%, +0.14%.

MTGP does not track an index. Its managers pick bonds using both macro research (the economy and interest rates) and fundamental research (individual securities). At least 80% of net assets go into mortgage-related and other securitized debt. Most of that is agency mortgage-backed securities from Ginnie Mae, Fannie Mae and Freddie Mac. These are pools of home or commercial loans whose payments pass through to bondholders. Up to 20% can go into non-agency mortgage bonds, asset-backed securities and collateralized loan obligations, and no more than 20% can be below investment grade.

As of May 31, 2026, the fund held 184 positions from 178 issuers, and the top 10 made up 22.4% of assets. The largest were a Fannie Mae pool (FN MA5106) at 3.7% and a Ginnie Mae pool (G2 MA7648) at 2.5%. Government-sponsored enterprises issued 57.5% of holdings, US agencies 27.6% and companies 17.2%. Portfolio turnover was 188%, which means the managers trade heavily.

The fund often buys mortgages through "to-be-announced" (TBA) trades. These are contracts to buy mortgage pools later, with the actual pools named about two days before settlement. While a trade is pending, the fund holds short-term Treasuries, repurchase agreements or commercial paper. It aims for a duration of up to seven years. Duration is a gauge of how much prices move when rates change. The managers use Treasury futures to adjust it.

• MTGP charges 0.46% a year, versus an average of 0.31% for the similar funds below (6th of 8, cheapest first).
• Of that, 0.45% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $47 in the first year and $579 over 10 years (assuming a 5% annual return).

MTGP pays monthly income from a portfolio of mostly government-backed mortgage bonds, with a trailing yield of 5.21% as of October 27, 2026.

MTGP could add monthly income, but it does not protect against rising rates. It lost 11.68% in 2022, and its worst quarter was a 4.85% drop in the three months to September 30, 2022. The price-based figures here start October 18, 2022, so they miss the 2008 and 2020 sell-offs. The fund launched in 2019 and returned 4.97% in 2020. Since October 2022, its deepest drop was 7.9%, from April to October 2023. It recovered by December 14, 2023. A retiree who had to sell shares in late 2022 would have locked in losses.

Costs eat into bond income. At 0.46% a year, the SEC's standard example puts the cost of a $10,000 investment at $47 for one year and $579 over 10 years. Past results don't predict future ones, and any plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).