How To Keep & Grow Your Money #36

What Top Execs Read Before the Market Opens

The Daily Upside was founded by investment professionals to arm decision-makers with market intelligence that goes deeper than headlines. No filler. Just concise, trusted insights on business trends, deal flow, and economic shifts—read by leaders at top firms across finance, tech, and beyond.

Join 1M+ professionals who stay informed before the rest of the market catches up.

^{_{This section can contain product affiliate links. We may receivwe a commission if you make a purchase after clicking on one of these links.}}

In this letter, we analyze the iShares MBS ETF (MBB).

Ticker: MBB | Price: $91.82 | Gross Expense Ratio: 0.04% | Assets Under Management (AUM): $36.84 billion | 10-Year Average Annual Return: 1.02% (as of Apr 30, 2025)

What is it (short)?

The iShares MBS ETF (MBB) provides exposure to U.S. mortgage-backed securities (MBS) issued or guaranteed by government agencies, offering investors a way to earn income from the mortgage market.

What is it (long)?

MBB seeks to track the Bloomberg U.S. MBS Index, focusing on investment-grade mortgage-backed pass-through securities from agencies like Ginnie Mae, Fannie Mae, and Freddie Mac. These securities are backed by pools of residential mortgages, providing a steady income stream. With over 11,000 holdings, MBB offers broad diversification within the MBS market. The ETF is designed for investors seeking income with relatively low credit risk, thanks to the government backing of its underlying securities.

Our thoughts:

MBB is suitable for investors looking for consistent income and exposure to the U.S. housing market without directly investing in real estate. Its holdings are backed by government agencies, reducing credit risk. However, investors should be aware of interest rate risk, as rising rates can negatively impact MBS prices. Additionally, prepayment risk—when homeowners pay off mortgages early—can affect returns. Overall, MBB can be a valuable component of a diversified fixed-income portfolio, especially for those seeking stability and income.

Do your own research and if you would like to take our free course to learn how to invest into ETFs and Index Funds at Index Institution™ go here.

The Residency Mistake That Costs Entrepreneurs Six Figures

Most people think tax residency is just about where you live.

But if you're building a global business, here's the mistake that quietly drains six figures a year:

Confusing physical presence with tax residency.

Here’s how it happens:

You spend 5–6 months a year in a beautiful, low-cost country like Mexico, Portugal, or Thailand. You assume you're a tourist…

But the local tax authority sees you as a resident—and wants to tax your global income.

How to avoid it? Know these key rules:

🔹 183-Day Rule – If you’re in one country for 183 days or more in a calendar year, you’re likely a tax resident. No company setup or visa required—they just count your days.

🔹 “Center of Life” Rule – Even without hitting 183 days, countries can still claim you if your home, family, or key business ties are there.

🔹 Visa ≠ Tax Exemption – Holding a temporary visa doesn’t mean you’re exempt from local tax laws. Some countries tax foreigners the same as citizens.

If you're running a remote company or earning globally, your first strategic move isn't where to go—it's understanding how to avoid becoming a tax resident by accident.

This one shift alone can save you five to six figures a year in taxes… legally.

If you would like to explore legally paying less taxes and maximizing your freedom check out Global Optimizer™ or click here.

Financial Concept to Learn in This Edition: Montary Policy

What Are FANG Stocks and Why Are They Important for Investors?

Definition: FANG is an acronym representing four major American technology companies: Meta Platforms (formerly Facebook), Amazon, Netflix, and Alphabet (formerly Google). These companies are recognized for their significant influence in the tech industry and their substantial market capitalizations.

Key Aspects of FANG Stocks:

• Market Influence: FANG companies have a considerable impact on the stock market, often driving significant portions of market gains due to their size and performance.

• Growth Potential: These companies have demonstrated strong revenue and earnings growth, attracting investors seeking capital appreciation.

• Innovation Leaders: FANG stocks are at the forefront of technological innovation, influencing various sectors including e-commerce, digital media, and online advertising.

Why Investors Should Care:

• Portfolio Performance: Due to their substantial weight in major indices like the S&P 500, the performance of FANG stocks can significantly affect overall portfolio returns.

• Economic Indicators: The success and challenges of FANG companies can serve as indicators of broader economic trends, particularly in the tech sector.

• Investment Opportunities: Understanding FANG stocks can help investors identify potential opportunities and risks within the technology industry.

Key Considerations for Investors:

• Valuation Concerns: Given their popularity, FANG stocks may trade at high price-to-earnings ratios, raising questions about overvaluation.

• Market Volatility: The significant influence of FANG stocks on market indices can lead to increased volatility, affecting overall market stability.

• Regulatory Risks: These companies may face regulatory challenges related to antitrust laws, data privacy, and market competition, which can impact their stock performance.

In summary, FANG stocks represent some of the most influential and innovative companies in the technology sector. Their performance not only affects individual portfolios but also provides insights into broader market and economic trends. Investors should consider both the opportunities and risks associated with these stocks when making investment decisions.

To learn more about FANG Stocks read more on Investopedia here or learn more from our full FREE investing course & community here.