FTSD vs. CMBS
FTSD (Franklin Short Duration U.S. Government ETF) and CMBS (iShares CMBS ETF) are both Mortgage Backed Securities funds. FTSD is actively managed, while CMBS is passively managed. Over the past 10 years, FTSD returned 2.05%/yr vs 2.06%/yr for CMBS. At a 0.34 correlation, their price movements are largely independent. Both charge a 0.25% expense ratio.
Performance
FTSD vs. CMBS - Performance Comparison
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Returns By Period
In the year-to-date period, FTSD achieves a 0.80% return, which is significantly higher than CMBS's 0.14% return. Both investments have delivered pretty close results over the past 10 years, with FTSD having a 2.05% annualized return and CMBS not far ahead at 2.06%.
FTSD
- 1D
- -0.12%
- 1M
- 0.17%
- YTD
- 0.80%
- 6M
- 1.30%
- 1Y
- 4.31%
- 3Y*
- 4.98%
- 5Y*
- 2.46%
- 10Y*
- 2.05%
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%
FTSD vs. CMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FTSD Franklin Short Duration U.S. Government ETF | 0.80% | 5.66% | 5.20% | 4.84% | -3.13% | -0.90% | 3.13% | 2.40% | 1.64% | 0.63% |
CMBS iShares CMBS ETF | 0.14% | 7.67% | 4.27% | 5.06% | -11.21% | -1.82% | 7.86% | 7.94% | 0.77% | 2.95% |
Correlation
The correlation between FTSD and CMBS is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.19 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.39 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.48 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.40 |
Correlation (All Time) Calculated using the full available price history since Nov 6, 2013 | 0.34 |
The correlation between FTSD and CMBS shifts across timeframes, from 0.19 (1 year) to 0.48 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
FTSD vs. CMBS — Risk / Return Rank
FTSD
CMBS
FTSD vs. CMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Franklin Short Duration U.S. Government ETF (FTSD) and iShares CMBS ETF (CMBS). 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.
| FTSD | CMBS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.14 | ||
| Sortino ratioReturn per unit of downside risk | +3.51 | ||
| Omega ratioGain probability vs. loss probability | 1.69 | 1.20 | +0.48 |
| Calmar ratioReturn relative to maximum drawdown | 9.59 | 1.76 | +7.84 |
| Martin ratioReturn relative to average drawdown | 38.36 | 4.90 | +33.47 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FTSD | CMBS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.30 | 1.16 | +2.14 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.33 | 0.15 | +1.18 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.15 | 0.36 | +0.79 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.04 | 0.43 | +0.61 |
Drawdowns
FTSD vs. CMBS - Drawdown Comparison
The maximum FTSD drawdown since its inception was -5.32%, smaller than the maximum CMBS drawdown of -15.87%. Use the drawdown chart below to compare losses from any high point for FTSD and CMBS.
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Drawdown Indicators
| FTSD | CMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.32% | -15.87% | +10.55% |
Max Drawdown (1Y)Largest decline over 1 year | -0.45% | -2.44% | +1.99% |
Max Drawdown (3Y)Largest decline over 3 years | -0.93% | -3.29% | +2.36% |
Max Drawdown (5Y)Largest decline over 5 years | -5.04% | -15.87% | +10.83% |
Max Drawdown (10Y)Largest decline over 10 years | -5.32% | -15.87% | +10.55% |
Current DrawdownCurrent decline from peak | -0.12% | -1.77% | +1.65% |
Average DrawdownAverage peak-to-trough decline | -0.60% | -2.95% | +2.35% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.11% | 0.87% | -0.76% |
Volatility
FTSD vs. CMBS - Volatility Comparison
The current volatility for Franklin Short Duration U.S. Government ETF (FTSD) is 0.51%, while iShares CMBS ETF (CMBS) has a volatility of 1.11%. This indicates that FTSD experiences smaller price fluctuations and is considered to be less risky than CMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FTSD | CMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.51% | 1.11% | -0.60% |
Volatility (6M)Calculated over the trailing 6-month period | 1.03% | 2.82% | -1.79% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.31% | 3.71% | -2.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.85% | 5.31% | -3.46% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.79% | 5.77% | -3.98% |
FTSD vs. CMBS - Expense Ratio Comparison
Both FTSD and CMBS have an expense ratio of 0.25%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
FTSD vs. CMBS - Dividend Comparison
FTSD's dividend yield for the trailing twelve months is around 4.50%, more than CMBS's 3.58% 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% |
FTSD Franklin Short Duration U.S. Government ETF | 4.50% | 4.67% | 4.75% | 4.14% | 1.73% | 1.01% | 1.54% | 2.90% | 2.63% | 2.24% | 1.92% | 1.52% |
Frequently Asked Questions
FTSD and CMBS have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
CMBS has higher volatility (1.11%) compared to FTSD (0.51%). In terms of maximum drawdown, FTSD dropped -5.32% vs CMBS's -15.87%.
On 10-year performance, CMBS leads with 2.06% vs 2.05% for FTSD. Both ETFs have the same 0.25% expense ratio. On volatility, FTSD has been the lower-risk option at 0.51%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, CMBS has performed better with a 2.06% return vs 2.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FTSD and CMBS have the same expense ratio: 0.25% per year.
FTSD has the higher dividend yield at 4.50%, compared with 3.58% for CMBS.
They also come from different issuers: Franklin Templeton and iShares.
FTSD currently has the higher Sharpe Ratio (3.30 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.
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