ALAI vs. MBSX

Last updated Jun 24, 2026

ALAI (Alger AI Enablers & Adopters ETF) and MBSX (Regan Fixed Rate MBS ETF) are both exchange-traded funds - ALAI is a Technology Equities fund actively managed by Alger, while MBSX is a Mortgage Backed Securities fund actively managed by Regan. Both are actively managed. Over the past year, ALAI returned 55.24% vs 9.78% for MBSX. At a correlation of -0.12, they often move in opposite directions. ALAI charges 0.55%/yr vs 0.40%/yr for MBSX.

Performance

ALAI vs. MBSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alger AI Enablers & Adopters ETF (ALAI) and Regan Fixed Rate MBS ETF (MBSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ALAI achieves a 23.84% return, which is significantly higher than MBSX's 5.41% return.

ALAI

• 1D: -3.08%
• 1M: 2.64%
• YTD: 23.84%
• 6M: 21.16%
• 1Y: 55.24%
• 3Y*: —
• 5Y*: —
• 10Y*: —

MBSX

• 1D: 0.00%
• 1M: 5.91%
• YTD: 5.41%
• 6M: 5.11%
• 1Y: 9.78%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ALAI vs. MBSX - Yearly Performance Comparison

	2026 (YTD)	2025
ALAI Alger AI Enablers & Adopters ETF	23.84%	54.54%
MBSX Regan Fixed Rate MBS ETF	5.41%	8.47%

Correlation

The correlation between ALAI and MBSX is -0.16, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.16
Correlation (All Time) Calculated using the full available price history since May 1, 2025	-0.12

Return for Risk

ALAI vs. MBSX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ALAI

ALAI Risk / Return Rank: 62
ALAI Sharpe Ratio Rank: 70
ALAI Sortino Ratio Rank: 62
ALAI Omega Ratio Rank: 61
ALAI Calmar Ratio Rank: 61
ALAI Martin Ratio Rank: 55

MBSX

MBSX Risk / Return Rank: 14
MBSX Sharpe Ratio Rank: 11
MBSX Sortino Ratio Rank: 14
MBSX Omega Ratio Rank: 19
MBSX Calmar Ratio Rank: 13
MBSX Martin Ratio Rank: 14

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ALAI vs. MBSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alger AI Enablers & Adopters ETF (ALAI) and Regan Fixed Rate MBS ETF (MBSX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ALAI	MBSX	Difference
Sharpe ratio: Return per unit of total volatility	2.14	0.18	+1.96
Sortino ratio: Return per unit of downside risk	2.73	0.64	+2.08
Omega ratio: Gain probability vs. loss probability	1.35	1.12	+0.23
Calmar ratio: Return relative to maximum drawdown	2.85	0.36	+2.49
Martin ratio: Return relative to average drawdown	8.95	1.15	+7.79

ALAI vs. MBSX - Sharpe Ratio Comparison

The current ALAI Sharpe Ratio is 2.14, which is higher than the MBSX Sharpe Ratio of 0.18. The chart below compares the historical Sharpe Ratios of ALAI and MBSX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ALAI vs. MBSX - Drawdown Comparison

The maximum ALAI drawdown since its inception was -29.36%, which is greater than MBSX's maximum drawdown of -27.57%. Use the drawdown chart below to compare losses from any high point for ALAI and MBSX.

Drawdown Indicators

	ALAI	MBSX	Difference
Max Drawdown Largest peak-to-trough decline	-29.36%	-27.57%	-1.79%
Max Drawdown (1Y) Largest decline over 1 year	-19.48%	-27.57%	+8.09%
Current Drawdown Current decline from peak	-4.34%	-21.16%	+16.82%
Average Drawdown Average peak-to-trough decline	-5.12%	-6.78%	+1.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.19%	8.50%	-2.31%

Volatility

ALAI vs. MBSX - Volatility Comparison

The current volatility for Alger AI Enablers & Adopters ETF (ALAI) is 11.00%, while Regan Fixed Rate MBS ETF (MBSX) has a volatility of 41.28%. This indicates that ALAI experiences smaller price fluctuations and is considered to be less risky than MBSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ALAI	MBSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.00%	41.28%	-30.28%
Volatility (6M) Calculated over the trailing 6-month period	20.54%	52.02%	-31.48%
Volatility (1Y) Calculated over the trailing 1-year period	25.98%	54.80%	-28.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.89%	54.59%	-25.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.89%	54.59%	-25.70%

ALAI vs. MBSX - Expense Ratio Comparison

ALAI has a 0.55% expense ratio, which is higher than MBSX's 0.40% expense ratio.

Dividends

ALAI vs. MBSX - Dividend Comparison

ALAI's dividend yield for the trailing twelve months is around 1.21%, less than MBSX's 3.38% yield.

Position	TTM	2025	2024
ALAI Alger AI Enablers & Adopters ETF	1.21%	1.50%	0.66%
MBSX Regan Fixed Rate MBS ETF	3.38%	2.77%	0.00%

Frequently Asked Questions

Can I hold both ALAI and MBSX in my portfolio?

ALAI and MBSX have a correlation of -0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ALAI or MBSX?

MBSX has higher volatility (41.28%) compared to ALAI (11.00%). In terms of maximum drawdown, ALAI dropped -29.36% vs MBSX's -27.57%.

Which ETF is better, ALAI or MBSX?

On 1-year performance, ALAI leads with 55.24% vs 9.78% for MBSX. On fees, MBSX is cheaper at 0.40% per year. On volatility, ALAI has been the lower-risk option at 11.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ALAI or MBSX?

Over the 1-year period, ALAI has performed better with a 55.24% return vs 9.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ALAI or MBSX?

MBSX is cheaper with a 0.40% expense ratio, compared with 0.55% for ALAI.

Which ETF pays a higher dividend yield, ALAI or MBSX?

MBSX has the higher dividend yield at 3.38%, compared with 1.21% for ALAI.

What is the main difference between ALAI and MBSX?

ALAI is categorized as Technology Equities, while MBSX is Mortgage Backed Securities. They also come from different issuers: Alger and Regan. Their fees differ too: 0.55% for ALAI and 0.40% for MBSX.

Which has better risk-adjusted returns?

ALAI currently has the higher Sharpe Ratio (2.14 vs 0.18), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.