5 things investors need to know about Ginnie Mae funds
Investors in government-backed mortgage bonds called Ginnie Maes have recently earned returns of around 5 percent, topping the stock market and achieving it without sharp ups and downs. If income is the goal, mutual funds specializing in Ginnie Maes are yielding around 3 percent. That’s twice as much as buyers of 10-year Treasurys are earning. What are the the potential risks and rewards from this low-risk option for investing in the housing market?