CMBS vs. PMBS

Last updated Jun 4, 2026

CMBS (iShares CMBS ETF) and PMBS (PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund) are both Mortgage Backed Securities funds. CMBS is passively managed, while PMBS is actively managed. Over the past year, CMBS returned 4.26% vs 7.55% for PMBS. At a 0.41 correlation, their price movements are largely independent. CMBS charges 0.25%/yr vs 0.71%/yr for PMBS.

Performance

CMBS vs. PMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares CMBS ETF (CMBS) and PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CMBS achieves a 0.14% return, which is significantly lower than PMBS's 0.90% return.

CMBS

• 1D: -0.04%
• 1M: -0.05%
• YTD: 0.14%
• 6M: 0.28%
• 1Y: 4.26%
• 3Y*: 5.15%
• 5Y*: 0.79%
• 10Y*: 2.06%

PMBS

• 1D: -0.21%
• 1M: 0.11%
• YTD: 0.90%
• 6M: 1.15%
• 1Y: 7.55%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

CMBS vs. PMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
CMBS iShares CMBS ETF	0.14%	7.67%	-1.98%
PMBS PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund	0.90%	8.92%	-2.75%

Correlation

The correlation between CMBS and PMBS is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (All Time) Calculated using the full available price history since Sep 24, 2024	0.41

Return for Risk

CMBS vs. PMBS — Risk / Return Rank

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

CMBS

CMBS Risk / Return Rank: 32
CMBS Sharpe Ratio Rank: 32
CMBS Sortino Ratio Rank: 33
CMBS Omega Ratio Rank: 29
CMBS Calmar Ratio Rank: 35
CMBS Martin Ratio Rank: 32

PMBS

PMBS Risk / Return Rank: 53
PMBS Sharpe Ratio Rank: 53
PMBS Sortino Ratio Rank: 56
PMBS Omega Ratio Rank: 53
PMBS Calmar Ratio Rank: 52
PMBS Martin Ratio Rank: 52

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.

CMBS vs. PMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares CMBS ETF (CMBS) and PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS). 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.

	CMBS	PMBS	Difference
Sharpe ratio: Return per unit of total volatility	1.16	1.80	-0.64
Sortino ratio: Return per unit of downside risk	1.77	2.66	-0.90
Omega ratio: Gain probability vs. loss probability	1.20	1.33	-0.13
Calmar ratio: Return relative to maximum drawdown	1.76	2.56	-0.80
Martin ratio: Return relative to average drawdown	4.90	8.70	-3.80
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CMBS vs. PMBS - Sharpe Ratio Comparison

The current CMBS Sharpe Ratio is 1.16, which is lower than the PMBS Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of CMBS and PMBS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	CMBS	PMBS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.16	1.80	-0.64
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.15	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.36	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.83	-0.39

Drawdowns

CMBS vs. PMBS - Drawdown Comparison

The maximum CMBS drawdown since its inception was -15.87%, which is greater than PMBS's maximum drawdown of -4.35%. Use the drawdown chart below to compare losses from any high point for CMBS and PMBS.

Drawdown Indicators

	CMBS	PMBS	Difference
Max Drawdown Largest peak-to-trough decline	-15.87%	-4.35%	-11.52%
Max Drawdown (1Y) Largest decline over 1 year	-2.44%	-2.97%	+0.53%
Max Drawdown (3Y) Largest decline over 3 years	-3.29%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-15.87%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-15.87%	—	—
Current Drawdown Current decline from peak	-1.77%	-1.55%	-0.22%
Average Drawdown Average peak-to-trough decline	-2.95%	-1.14%	-1.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.87%	0.87%	0.00%

Volatility

CMBS vs. PMBS - Volatility Comparison

The current volatility for iShares CMBS ETF (CMBS) is 1.11%, while PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) has a volatility of 1.52%. This indicates that CMBS experiences smaller price fluctuations and is considered to be less risky than PMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CMBS	PMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.11%	1.52%	-0.41%
Volatility (6M) Calculated over the trailing 6-month period	2.82%	3.10%	-0.28%
Volatility (1Y) Calculated over the trailing 1-year period	3.71%	4.22%	-0.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.31%	4.88%	+0.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.77%	4.88%	+0.89%

CMBS vs. PMBS - Expense Ratio Comparison

CMBS has a 0.25% expense ratio, which is lower than PMBS's 0.71% expense ratio.

Dividends

CMBS vs. PMBS - Dividend Comparison

CMBS's dividend yield for the trailing twelve months is around 3.58%, less than PMBS's 4.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CMBS iShares CMBS ETF	3.58%	3.45%	3.31%	2.97%	2.65%	2.46%	2.83%	2.74%	2.70%	2.50%	2.29%	2.31%
PMBS PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund	4.98%	4.73%	1.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both CMBS and PMBS in my portfolio?

CMBS and PMBS have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CMBS or PMBS?

PMBS has higher volatility (1.52%) compared to CMBS (1.11%). In terms of maximum drawdown, CMBS dropped -15.87% vs PMBS's -4.35%.

Which ETF is better, CMBS or PMBS?

On 1-year performance, PMBS leads with 7.55% vs 4.26% for CMBS. On fees, CMBS is cheaper at 0.25% per year. On volatility, CMBS has been the lower-risk option at 1.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CMBS or PMBS?

Over the 1-year period, PMBS has performed better with a 7.55% return vs 4.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CMBS or PMBS?

CMBS is cheaper with a 0.25% expense ratio, compared with 0.71% for PMBS.

Which ETF pays a higher dividend yield, CMBS or PMBS?

PMBS has the higher dividend yield at 4.98%, compared with 3.58% for CMBS.

What is the main difference between CMBS and PMBS?

They also come from different issuers: iShares and PIMCO. Their fees differ too: 0.25% for CMBS and 0.71% for PMBS.

Which has better risk-adjusted returns?

PMBS currently has the higher Sharpe Ratio (1.80 vs 1.16), 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.