Advocacy Wealth Cuts $11 Million PMBS Stake as Rates Rise
Key Points
Sold 220,579 shares of PMBS; estimated transaction value of $10.95 million (based on quarterly average pricing).
Quarter-end position value decreased by $11.06 million, reflecting both trading activity and price movement.
Transaction represented 0.48% of 13F reportable assets under management.
Post-trade stake: 1,058,736 shares, valued at $52.51 million.
PMBS now accounts for 2.32% of the fund's AUM, placing it outside the fund's top five holdings.
On May 12, 2026, Advocacy Wealth Management disclosed in a U.S. Securities and Exchange Commission filing that it sold 220,579 shares of PMBS, an estimated $10.95 million trade based on quarterly average pricing.
What happened
According to an SEC filing dated May 12, 2026, Advocacy Wealth Management, LLC reduced its holdings in PIMCO ETF Trust - PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (NASDAQ:PMBS) by 220,579 shares. The estimated transaction value was approximately $10.95 million, calculated using the average price over the first quarter of 2026. The quarter-end value of the position decreased by $11.06 million, capturing both the share sale and market price changes.
What else to know
- After the sale, PMBS represents 2.3% of the fund’s 13F reportable AUM.
- Top holdings after the filing:
- NYSEMKT: SPYM: $304.84 million (13.5% of AUM)
- NYSEMKT: IVE: $107.81 million (4.8% of AUM)
- NYSEMKT: SPTL: $104.64 million (4.6% of AUM)
- NYSEMKT: LDUR: $103.56 million (4.6% of AUM)
- NYSEMKT: PYLD: $102.79 million (4.5% of AUM)
ETF overview
| Metric | Value |
|---|---|
| Price (as of market close May 12, 2026) | $49.34 |
| AUM | $1.29 billion |
| Expense ratio | 0.71% |
| Dividend yield | 4.99% |
ETF snapshot
- Offers an actively managed exchange-traded fund focused on mortgage-backed securities.
- Generates income primarily through investment in mortgage-backed securities, seeking to provide total return consistent with preservation of capital and prudent investment management.
- Targets institutional and retail investors seeking exposure to mortgage-backed securities within a liquid ETF structure.
PIMCO ETF Trust - PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund is structured to deliver exposure to the U.S. mortgage-backed securities market through an actively managed ETF format. The fund leverages PIMCO's fixed income expertise to select and manage a portfolio of mortgage-backed securities, aiming to optimize returns while managing risk.
This investment vehicle is designed for investors seeking a combination of income and capital preservation, utilizing a disciplined approach to security selection and risk management. Its competitive edge lies in active management and the ability to respond dynamically to changes in the mortgage and interest rate environment.
What this transaction means for investors
Advocacy Wealth Management trimmed a sizable mortgage-backed securities position during Q1, a quarter when rising rates made bond investing particularly tricky.
PMBS holds mortgage-related bonds primarily backed by home loans from Fannie Mae, Freddie Mac, and other agencies. These bonds sit between Treasuries and corporate bonds in terms of risk and yield. Mortgage-backed securities face both interest rate sensitivity and prepayment risk. When rates drop, homeowners refinance early, forcing investors to reinvest at lower rates.
The fund charges a 0.71% expense ratio, notably higher than passive mortgage bond funds, because PIMCO actively manages the portfolio to navigate prepayment and rate exposure. During Q1, rising rates pushed bond prices down across the board.
For bond investors, mortgage-backed securities offer higher yields than Treasuries but come with complexities that require active management. That higher expense ratio only makes sense if the manager's calls consistently add value beyond what a cheaper passive fund delivers.
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