First Trust Low Duration Mortgage Opportunities ETF (LMBS) belongs to the Mortgage Backed Securities category. Below you'll find alternative ETFs from the same category, ranked by key criteria, plus funds that investors commonly compare with LMBS. Use the tables to find lower-cost options, better risk-adjusted returns, or a closer substitute for your current allocation.
Cheapest Alternatives to LMBS
LMBS charges 0.68% annually. There are 24 ETFs in the Mortgage Backed Securities category with lower expense ratios, going as low as 0.03%.
| Symbol | Name | Expense Ratio | AUM | Inception | |
|---|---|---|---|---|---|
| Schwab Mortgage-Backed Securities ETF | 0.03% | — | Nov 2024 | LMBS vs SMBS | |
| SPDR Portfolio Mortgage Backed Bond ETF | 0.04% | 7.00B | Jan 2009 | LMBS vs SPMB | |
| iShares MBS Bond ETF | 0.04% | 38.93B | Mar 2007 | LMBS vs MBB | |
| Vanguard Mortgage-Backed Securities ETF | 0.04% | 17.30B | Nov 2009 | LMBS vs VMBS | |
| Simplify MBS ETF | 0.15% | 1.49B | Nov 2023 | LMBS vs MTBA |
Best Risk-Adjusted Alternatives to LMBS
LMBS has a PortfoliosLab risk / return rank of 91. There is 1 ETF in the Mortgage Backed Securities category with a higher risk-adjusted rank, going as high as 96.
| Symbol | Name | Risk / Return Rank | AUM | Inception | |
|---|---|---|---|---|---|
| Franklin Short Duration U.S. Government ETF | 96 | 301.85M | Nov 2013 | LMBS vs FTSD | |
| Virtus Newfleet ABS/MBS ETF | 85 | 112.17M | Feb 2021 | LMBS vs VABS | |
| JPMorgan Mortgage-Backed Securities ETF | 46 | 6.79B | Aug 2000 | LMBS vs JMTG | |
| First Trust TCW Securitized Plus ETF | 43 | 64.17M | Apr 2020 | LMBS vs DEED | |
| Schwab Mortgage-Backed Securities ETF | 43 | — | Nov 2024 | LMBS vs SMBS |
Top Performing LMBS Alternatives (YTD)
LMBS is at 1.39% YTD. There are 3 ETFs in the Mortgage Backed Securities category with higher YTD returns, going as high as 4.51%.
| Symbol | Name | YTD Return | AUM | Inception | |
|---|---|---|---|---|---|
| Regan Fixed Rate MBS ETF | 4.51% | 13.94M | Apr 2025 | LMBS vs MBSX | |
| Nuveen Securitized Income ETF | 2.58% | 207.24M | Sep 2025 | LMBS vs NSCI | |
| Virtus Newfleet ABS/MBS ETF | 2.04% | 112.17M | Feb 2021 | LMBS vs VABS | |
| Franklin Short Duration U.S. Government ETF | 1.24% | 301.85M | Nov 2013 | LMBS vs FTSD | |
| Eaton Vance Mortgage Opportunities ETF | 0.65% | — | Aug 2025 | LMBS vs EVMO |
Lowest Volatility Alternatives to LMBS
LMBS has 1.97% 1-year volatility. There are 4 ETFs in the Mortgage Backed Securities category with lower 1-year volatility, going as low as 1.30%.
| Symbol | Name | Volatility 1Y | AUM | Inception | |
|---|---|---|---|---|---|
| Nuveen Securitized Income ETF | 1.30% | 207.24M | Sep 2025 | LMBS vs NSCI | |
| Franklin Short Duration U.S. Government ETF | 1.36% | 301.85M | Nov 2013 | LMBS vs FTSD | |
| American Century Securitized Credit ETF | 1.83% | 20.00M | May 2026 | LMBS vs ASEC | |
| Virtus Newfleet ABS/MBS ETF | 1.89% | 112.17M | Feb 2021 | LMBS vs VABS | |
| DoubleLine Securitized Credit ETF | 2.43% | 217.07M | Sep 2019 | LMBS vs DSCO |
Lowest Drawdown Alternatives to LMBS
LMBS has a 1-year max drawdown of -1.43%. There are 2 ETFs in the Mortgage Backed Securities category with shallower 1-year drawdowns, going as shallow as -0.45%.
| Symbol | Name | Max Drawdown 1Y | AUM | Inception | |
|---|---|---|---|---|---|
| Franklin Short Duration U.S. Government ETF | -0.45% | 301.85M | Nov 2013 | LMBS vs FTSD | |
| Virtus Newfleet ABS/MBS ETF | -0.98% | 112.17M | Feb 2021 | LMBS vs VABS | |
| FlexShares Disciplined Duration MBS Index Fund | -2.17% | 88.64M | Sep 2014 | LMBS vs MBSD | |
| iShares CMBS ETF | -2.44% | 472.92M | Feb 2012 | LMBS vs CMBS | |
| WisdomTree Mortgage Plus Bond Fund | -2.53% | 69.79M | Nov 2019 | LMBS vs MTGP |
Other ETFs from First Trust
The 10 most viewed First Trust ETFs shown here include CIBR, GRID, AIRR and span 16 categories. AUM among these funds goes as high as $25B.
Often Compared With LMBS
Investors most often compare LMBS with FMB, IXJ, JMBS. These 20 comparison targets span 11 categories, based on PortfoliosLab usage data.
Compare LMBS with Any Fund or Stock
Compare LMBS with any ETF, mutual fund, or stock using PortfoliosLab's comparison tool.
Pair LMBS with funds that move differently
First Trust Low Duration Mortgage Opportunities ETF alternatives help with substitution. Diversifiers are the next step when you want funds with lower historical correlation to LMBS.
Explore LMBS Diversifiers