Mortgage Backed Securities

An actively managed ETF that invests primarily in short-duration U.S. government securities, with approximately two-thirds of the portfolio in agency mortgage-backed securities (Fannie Mae, Freddie Mac) and the remainder in direct government securities such as T-bills, notes, and TIPS, targeting an average duration of three years or less.

NYSEArca

FTSD

NasdaqGM

LMBS

VABS is an actively managed ETF that seeks to generate income by investing primarily in short-duration, investment-grade securitized debt including asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), and residential mortgage-backed securities (RMBS).

VABS

DEED

The PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund seeks maximum total return by investing in a diversified portfolio of mortgage-related fixed income instruments, including mortgage pass-through securities, collateralized mortgage obligations, and commercial mortgage-backed securities.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
FTSD	Franklin Short Duration U.S. Government ETF	3.10	1.40	1.19	96
LMBS	First Trust Low Duration Mortgage Opportunities ET...	2.88	1.24	1.14	92
VABS	Virtus Newfleet ABS/MBS ETF	2.16	1.44	—	84
DEED	First Trust TCW Securitized Plus ETF	1.70	0.05	—	57
PMBS	PIMCO Mortgage-Backed Securities Active Exchange-T...	1.56	—	—	55

Top Mortgage Backed Securities ETFs by Sharpe Ratio

Top Mortgage Backed Securities ETFs by Sharpe Ratio