FSMB vs. IBMO
FSMB (First Trust Short Duration Managed Municipal ETF) and IBMO (iShares iBonds Dec 2026 Term Muni Bond ETF) are both Municipal Bonds funds. FSMB is actively managed, while IBMO is passively managed. Over the past 5 years, FSMB returned 1.52%/yr vs 0.72%/yr for IBMO. At a 0.40 correlation, their price movements are largely independent. FSMB charges 0.45%/yr vs 0.18%/yr for IBMO.
Performance
FSMB vs. IBMO - Performance Comparison
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Returns By Period
In the year-to-date period, FSMB achieves a 1.26% return, which is significantly higher than IBMO's 1.03% return.
FSMB
- 1D
- 0.00%
- 1M
- 0.65%
- YTD
- 1.26%
- 6M
- 1.39%
- 1Y
- 3.78%
- 3Y*
- 3.39%
- 5Y*
- 1.52%
- 10Y*
- —
IBMO
- 1D
- 0.02%
- 1M
- 0.19%
- YTD
- 1.03%
- 6M
- 1.02%
- 1Y
- 2.62%
- 3Y*
- 2.80%
- 5Y*
- 0.72%
- 10Y*
- —
FSMB vs. IBMO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
FSMB First Trust Short Duration Managed Municipal ETF | 1.26% | 4.22% | 2.35% | 3.54% | -3.75% | 1.20% | 3.53% | 2.77% |
IBMO iShares iBonds Dec 2026 Term Muni Bond ETF | 1.03% | 3.11% | 1.97% | 2.90% | -5.36% | -0.16% | 5.48% | 4.69% |
Correlation
The correlation between FSMB and IBMO is 0.12, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.12 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.34 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.46 |
Correlation (All Time) Calculated using the full available price history since Apr 4, 2019 | 0.40 |
Over the past year, the correlation between FSMB and IBMO has dropped to 0.12 - well below their long-term average of 0.40, suggesting their price drivers have been diverging.
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Return for Risk
FSMB vs. IBMO — Risk / Return Rank
FSMB
IBMO
FSMB vs. IBMO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Short Duration Managed Municipal ETF (FSMB) and iShares iBonds Dec 2026 Term Muni Bond ETF (IBMO). 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.
| FSMB | IBMO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.32 | ||
| Sortino ratioReturn per unit of downside risk | +0.21 | ||
| Omega ratioGain probability vs. loss probability | 1.56 | 1.49 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | 2.95 | 6.95 | -4.00 |
| Martin ratioReturn relative to average drawdown | 10.01 | 20.64 | -10.63 |
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Drawdowns
FSMB vs. IBMO - Drawdown Comparison
The maximum FSMB drawdown since its inception was -6.32%, smaller than the maximum IBMO drawdown of -14.77%. Use the drawdown chart below to compare losses from any high point for FSMB and IBMO.
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Drawdown Indicators
| FSMB | IBMO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.32% | -14.77% | +8.45% |
Max Drawdown (1Y)Largest decline over 1 year | -1.29% | -0.38% | -0.91% |
Max Drawdown (3Y)Largest decline over 3 years | -1.76% | -1.76% | 0.00% |
Max Drawdown (5Y)Largest decline over 5 years | -5.97% | -8.86% | +2.89% |
Current DrawdownCurrent decline from peak | -0.15% | 0.00% | -0.15% |
Average DrawdownAverage peak-to-trough decline | -1.15% | -2.31% | +1.16% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.38% | 0.13% | +0.25% |
Volatility
FSMB vs. IBMO - Volatility Comparison
First Trust Short Duration Managed Municipal ETF (FSMB) has a higher volatility of 0.31% compared to iShares iBonds Dec 2026 Term Muni Bond ETF (IBMO) at 0.22%. This indicates that FSMB's price experiences larger fluctuations and is considered to be riskier than IBMO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FSMB | IBMO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.31% | 0.22% | +0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 1.03% | 0.79% | +0.24% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.40% | 1.10% | +0.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.96% | 2.14% | -0.18% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.91% | 4.50% | -1.59% |
FSMB vs. IBMO - Expense Ratio Comparison
FSMB has a 0.45% expense ratio, which is higher than IBMO's 0.18% expense ratio.
Dividends
FSMB vs. IBMO - Dividend Comparison
FSMB's dividend yield for the trailing twelve months is around 3.14%, more than IBMO's 2.39% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
FSMB First Trust Short Duration Managed Municipal ETF | 3.14% | 3.09% | 2.88% | 2.40% | 1.47% | 1.20% | 1.79% | 2.27% | 0.19% |
IBMO iShares iBonds Dec 2026 Term Muni Bond ETF | 2.39% | 2.37% | 2.15% | 1.65% | 0.89% | 0.62% | 1.03% | 1.01% | 0.00% |
Frequently Asked Questions
FSMB and IBMO have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FSMB has higher volatility (0.31%) compared to IBMO (0.22%). In terms of maximum drawdown, FSMB dropped -6.32% vs IBMO's -14.77%.
On 5-year performance, FSMB leads with 1.52% vs 0.72% for IBMO. On fees, IBMO is cheaper at 0.18% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, FSMB has performed better with a 1.52% return vs 0.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IBMO is cheaper with a 0.18% expense ratio, compared with 0.45% for FSMB.
FSMB has the higher dividend yield at 3.14%, compared with 2.39% for IBMO.
They also come from different issuers: First Trust and iShares. Their fees differ too: 0.45% for FSMB and 0.18% for IBMO.
FSMB currently has the higher Sharpe Ratio (2.71 vs 2.39), 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.
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