CMF vs. MBB
Compare and contrast key facts about iShares California Muni Bond ETF (CMF) and iShares MBS Bond ETF (MBB).
CMF and MBB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. CMF is a passively managed fund by iShares that tracks the performance of the S&P California AMT-Free Municipal Bond Index. It was launched on Oct 4, 2007. MBB is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. MBS Index. It was launched on Mar 16, 2007. Both CMF and MBB are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: CMF or MBB.
Key characteristics
| CMF | MBB | |
|---|---|---|
| YTD Return | -0.57% | -2.48% |
| 1Y Return | 2.33% | -0.88% |
| 3Y Return (Ann) | -1.04% | -3.59% |
| 5Y Return (Ann) | 1.00% | -0.76% |
| 10Y Return (Ann) | 2.05% | 0.71% |
| Sharpe Ratio | 0.58 | -0.15 |
| Daily Std Dev | 4.16% | 8.08% |
| Max Drawdown | -16.45% | -17.64% |
| Current Drawdown | -4.03% | -11.14% |
Correlation
The correlation between CMF and MBB is 0.40, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
CMF vs. MBB - Performance Comparison
In the year-to-date period, CMF achieves a -0.57% return, which is significantly higher than MBB's -2.48% return. Over the past 10 years, CMF has outperformed MBB with an annualized return of 2.05%, while MBB has yielded a comparatively lower 0.71% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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CMF vs. MBB - Expense Ratio Comparison
CMF has a 0.25% expense ratio, which is higher than MBB's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
CMF vs. MBB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares California Muni Bond ETF (CMF) and iShares MBS Bond ETF (MBB). 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.
Dividends
CMF vs. MBB - Dividend Comparison
CMF's dividend yield for the trailing twelve months is around 2.49%, less than MBB's 3.69% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CMF iShares California Muni Bond ETF | 2.49% | 2.29% | 1.74% | 1.58% | 1.80% | 2.03% | 2.17% | 2.09% | 2.21% | 2.55% | 2.80% | 3.12% |
MBB iShares MBS Bond ETF | 3.69% | 3.40% | 2.31% | 1.05% | 2.10% | 2.77% | 2.64% | 2.23% | 2.58% | 2.66% | 1.72% | 1.27% |
Drawdowns
CMF vs. MBB - Drawdown Comparison
The maximum CMF drawdown since its inception was -16.45%, smaller than the maximum MBB drawdown of -17.64%. Use the drawdown chart below to compare losses from any high point for CMF and MBB. For additional features, visit the drawdowns tool.
Volatility
CMF vs. MBB - Volatility Comparison
The current volatility for iShares California Muni Bond ETF (CMF) is 0.98%, while iShares MBS Bond ETF (MBB) has a volatility of 2.45%. This indicates that CMF experiences smaller price fluctuations and is considered to be less risky than MBB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.