An exchange-traded fund (ETF) is a fund comprised of securities that is regularly traded on major stock exchanges. CMBS ETFs are exchange-traded funds composed of commercial mortgage backed securities (CMBS). A commercial mortgage backed security generally consists of a pool of loans issued to income-producing commercial properties, such as apartment buildings, shopping centers, and hotels, that is placed in a trust, securitized, and sold to investors on the secondary market. Right now, the concept of CMBS ETFs is relatively new, so only one CMBS ETF is currently being actively traded, the iShares CMBS ETF.
