GAEM vs. MTBA

Last updated Jun 23, 2026

GAEM (Simplify Gamma Emerging Market Bond ETF) and MTBA (Simplify MBS ETF) are both exchange-traded funds - GAEM is a Emerging Markets Bonds fund actively managed by Simplify, while MTBA is a Mortgage Backed Securities fund actively managed by Simplify. Both are actively managed. Over the past year, GAEM returned 13.31% vs 4.63% for MTBA. A 0.51 correlation means they provide meaningful diversification when combined. GAEM charges 0.76%/yr vs 0.15%/yr for MTBA.

Performance

GAEM vs. MTBA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Simplify Gamma Emerging Market Bond ETF (GAEM) and Simplify MBS ETF (MTBA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, GAEM achieves a 4.12% return, which is significantly higher than MTBA's -0.06% return.

GAEM

• 1D: -0.30%
• 1M: 2.25%
• YTD: 4.12%
• 6M: 4.86%
• 1Y: 13.31%
• 3Y*: —
• 5Y*: —
• 10Y*: —

MTBA

• 1D: -0.12%
• 1M: 0.59%
• YTD: -0.06%
• 6M: 0.09%
• 1Y: 4.63%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

GAEM vs. MTBA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
GAEM Simplify Gamma Emerging Market Bond ETF	4.12%	13.55%	3.89%
MTBA Simplify MBS ETF	-0.06%	7.74%	-0.51%

Correlation

The correlation between GAEM and MTBA is 0.56, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.56
Correlation (All Time) Calculated using the full available price history since Aug 13, 2024	0.51

The correlation between GAEM and MTBA has been stable across timeframes, ranging from 0.51 to 0.56 - a consistent structural relationship.

Return for Risk

GAEM vs. MTBA — Risk / Return Rank

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

GAEM

GAEM Risk / Return Rank: 86
GAEM Sharpe Ratio Rank: 88
GAEM Sortino Ratio Rank: 93
GAEM Omega Ratio Rank: 90
GAEM Calmar Ratio Rank: 75
GAEM Martin Ratio Rank: 85

MTBA

MTBA Risk / Return Rank: 40
MTBA Sharpe Ratio Rank: 44
MTBA Sortino Ratio Rank: 43
MTBA Omega Ratio Rank: 46
MTBA Calmar Ratio Rank: 34
MTBA Martin Ratio Rank: 35

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.

GAEM vs. MTBA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Simplify Gamma Emerging Market Bond ETF (GAEM) and Simplify MBS ETF (MTBA). 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.

	GAEM	MTBA	Difference
Sharpe ratio: Return per unit of total volatility	2.76	1.50	+1.26
Sortino ratio: Return per unit of downside risk	4.44	2.11	+2.33
Omega ratio: Gain probability vs. loss probability	1.56	1.29	+0.27
Calmar ratio: Return relative to maximum drawdown	3.70	1.65	+2.05
Martin ratio: Return relative to average drawdown	16.85	5.22	+11.63

GAEM vs. MTBA - Sharpe Ratio Comparison

The current GAEM Sharpe Ratio is 2.76, which is higher than the MTBA Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of GAEM and MTBA, 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

GAEM vs. MTBA - Drawdown Comparison

The maximum GAEM drawdown since its inception was -3.84%, which is greater than MTBA's maximum drawdown of -3.48%. Use the drawdown chart below to compare losses from any high point for GAEM and MTBA.

Drawdown Indicators

	GAEM	MTBA	Difference
Max Drawdown Largest peak-to-trough decline	-3.84%	-3.48%	-0.36%
Max Drawdown (1Y) Largest decline over 1 year	-3.61%	-2.82%	-0.79%
Current Drawdown Current decline from peak	-0.33%	-1.44%	+1.11%
Average Drawdown Average peak-to-trough decline	-0.51%	-0.80%	+0.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.79%	0.89%	-0.10%

Volatility

GAEM vs. MTBA - Volatility Comparison

Simplify Gamma Emerging Market Bond ETF (GAEM) has a higher volatility of 1.41% compared to Simplify MBS ETF (MTBA) at 0.97%. This indicates that GAEM's price experiences larger fluctuations and is considered to be riskier than MTBA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GAEM	MTBA	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.41%	0.97%	+0.44%
Volatility (6M) Calculated over the trailing 6-month period	3.90%	2.58%	+1.32%
Volatility (1Y) Calculated over the trailing 1-year period	4.85%	3.11%	+1.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.97%	3.95%	+1.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.97%	3.95%	+1.02%

GAEM vs. MTBA - Expense Ratio Comparison

GAEM has a 0.76% expense ratio, which is higher than MTBA's 0.15% expense ratio.

Dividends

GAEM vs. MTBA - Dividend Comparison

GAEM's dividend yield for the trailing twelve months is around 7.48%, more than MTBA's 6.08% yield.

Position	TTM	2025	2024	2023
GAEM Simplify Gamma Emerging Market Bond ETF	7.48%	6.50%	3.78%	0.00%
MTBA Simplify MBS ETF	6.08%	5.98%	6.03%	0.48%

Frequently Asked Questions

Can I hold both GAEM and MTBA in my portfolio?

GAEM and MTBA have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GAEM or MTBA?

GAEM has higher volatility (1.41%) compared to MTBA (0.97%). In terms of maximum drawdown, GAEM dropped -3.84% vs MTBA's -3.48%.

Which ETF is better, GAEM or MTBA?

On 1-year performance, GAEM leads with 13.31% vs 4.63% for MTBA. On fees, MTBA is cheaper at 0.15% per year. On volatility, MTBA has been the lower-risk option at 0.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GAEM or MTBA?

Over the 1-year period, GAEM has performed better with a 13.31% return vs 4.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GAEM or MTBA?

MTBA is cheaper with a 0.15% expense ratio, compared with 0.76% for GAEM.

Which ETF pays a higher dividend yield, GAEM or MTBA?

GAEM has the higher dividend yield at 7.48%, compared with 6.08% for MTBA.

What is the main difference between GAEM and MTBA?

GAEM is categorized as Emerging Markets Bonds, while MTBA is Mortgage Backed Securities. Their fees differ too: 0.76% for GAEM and 0.15% for MTBA.

Which has better risk-adjusted returns?

GAEM currently has the higher Sharpe Ratio (2.76 vs 1.50), 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.