First Trust Low Duration Mortgage Opportunities ETF (LMBS) Sharpe Ratio: 2.86

LMBS's Sharpe Ratio of 2.86 indicates that for each unit of volatility, it generates 2.86 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 24, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

LMBS Sharpe Ratio Rank

Exceptional

LMBS ranks above 90.0% of all investments in our database based on Sharpe Ratio over the past 12 months, demonstrating exceptional risk-adjusted returns. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

Strong returns with low total volatility → Higher rank
High volatility (both upside and downside) → Lower rank
Consistent returns → Higher rank than volatile returns of same magnitude
Sharp drawdowns increase volatility → Lower rank

What you can do with this information

Suitable as a core holding given strong risk-adjusted returns
Monitor rank changes to detect deteriorating return-to-volatility profile
Exceptional Sharpe ratio supports larger position sizes
Compare with category peers to assess whether strength is investment-specific or category-wide

LMBS Sharpe Ratio Market Positioning

The chart shows LMBS's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

Red zone (bottom 25%): 0.83 or lower
Yellow zone (middle 50%): 0.83 to 2.16
Green zone (top 25%): 2.16 or higher
Top 1%: 6.97+
Median: 1.57 — half of all investments score higher

How it compares to other similar ETFs

The table compares First Trust Low Duration Mortgage Opportunities ETF's Sharpe Ratio with other ETFs in the Mortgage Backed Securities category across multiple time periods, showing how LMBS's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 24, 2026.

Symbol	Name	1Y Sharpe Ratio
FTSD	Franklin Short Duration U.S. Government ETF	3.04
LMBS	First Trust Low Duration Mortgage Opportunities ETF	2.86
VABS	Virtus Newfleet ABS/MBS ETF	1.97
PMBS	PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund	1.56
DEED	First Trust TCW Securitized Plus ETF	1.53
JMBS	Janus Henderson Mortgage-Backed Securities ETF	1.47
MTBA	Simplify MBS ETF	1.43
SPMB	SPDR Portfolio Mortgage Backed Bond ETF	1.40
VMBS	Vanguard Mortgage-Backed Securities ETF	1.40
SMBS	Schwab Mortgage-Backed Securities ETF	1.38

Benchmark Against

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S&P 500 Index

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Historical Sharpe Ratio

The chart shows LMBS's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when LMBS consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does LMBS fit in your portfolio?

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