ETF Evaluator: iShares Securitized Income Active ETF () Follow This ETF

iShares Securitized Income Active ETF Overview

iShares Securitized Income Active ETF (SECU) is an actively managed Taxable Bond Securitized Bond - Diversified exchange-traded fund (ETF). iShares launched the ETF in 2005.

The investment seeks high total return. Under normal circumstances, at least 80% of the fund’s net assets, plus any borrowings for investment purposes, will be invested in securitized assets and derivatives that provide investment exposure to such securities or to one or more market risk factors associated with such assets. The management will concentrate its investments (i.e., invest at least 25% of its total assets) in non-agency mortgage-backed securities and may invest in other non-agency securities issued by banks and othe.

About iShares Securitized Income Active ETF (SECU)

There are 4 members of the management team with an average tenure of 10.03 years: Matthew Kraeger (2009), Ibrahim Incoglu (2019), Samir Lakhani (2019) and Siddharth Mehta (2016). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 3 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100%, Bloomberg non-agency IG CMBS TR USD index with a weighting of 50% and Bloomberg ABS TR USD index with a weighting of 50%. iShares Securitized Income Active ETF has 914 securities in its portfolio. The top 10 holdings constitute 14.6% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

iShares Securitized Income Active ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. iShares Securitized Income Active ETF has 11.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 100.0% (88.4% domestic bond, 11.6% foreign bond and 0.0% convertible bond). iShares Securitized Income Active ETF has 2.1% of the portfolio in cash.

Assets Under Management

The fund has $892 million in total assets, which is below the $912 million average for the Securitized Bond - Diversified category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

SECU Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The iShares Securitized Income Active ETF expense ratio is average compared to funds in the Securitized Bond - Diversified category. iShares Securitized Income Active ETF has an expense ratio of 0.40%, which is 4% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares Securitized Income Active ETF has a portfolio turnover rate of 192%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 154% for the Securitized Bond - Diversified category.

Recently, in the month of July 2026, iShares Securitized Income Active ETF returned -0.1%, which earned it a grade of C, as the Securitized Bond - Diversified category had an average return of -0.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

iShares Securitized Income Active ETF has a trailing yield of 4.96%, which is below the 5.35% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

iShares Securitized Income Active ETF Grades

Year to date, the ETF has returned 1.8%, 0.7 percentage points better than the category, which translates into a grade of B. The fund has returned 5.6% over the past year (grade of A), 6.6% over the past three years (grade of B) and 1.5% per year over the past five years (grade of C) and 2.4% per year over the past 10 years (grade of D).

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