GNMA vs. LMBS
GNMA (iShares GNMA Bond ETF) and LMBS (First Trust Low Duration Mortgage Opportunities ETF) are both Mortgage Backed Securities funds. GNMA is passively managed, while LMBS is actively managed. Over the past 10 years, GNMA returned 1.22%/yr vs 2.67%/yr for LMBS. At a 0.48 correlation, their price movements are largely independent. GNMA charges 0.15%/yr vs 0.68%/yr for LMBS.
Performance
GNMA vs. LMBS - Performance Comparison
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Returns By Period
In the year-to-date period, GNMA achieves a 0.92% return, which is significantly lower than LMBS's 1.44% return. Over the past 10 years, GNMA has underperformed LMBS with an annualized return of 1.22%, while LMBS has yielded a comparatively higher 2.67% annualized return.
GNMA
- 1D
- 0.19%
- 1M
- 1.00%
- YTD
- 0.92%
- 6M
- 1.04%
- 1Y
- 5.77%
- 3Y*
- 4.27%
- 5Y*
- 0.64%
- 10Y*
- 1.22%
LMBS
- 1D
- 0.03%
- 1M
- 0.40%
- YTD
- 1.44%
- 6M
- 1.43%
- 1Y
- 5.52%
- 3Y*
- 5.80%
- 5Y*
- 3.11%
- 10Y*
- 2.67%
GNMA vs. LMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
GNMA iShares GNMA Bond ETF | 0.92% | 8.25% | 1.07% | 5.34% | -10.83% | -1.86% | 3.51% | 5.85% | 0.85% | 1.74% |
LMBS First Trust Low Duration Mortgage Opportunities ETF | 1.44% | 7.05% | 5.15% | 6.10% | -3.07% | -0.91% | 1.64% | 4.10% | 1.62% | 1.68% |
Correlation
The correlation between GNMA and LMBS is 0.72, 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 | 0.72 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.74 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.67 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Nov 5, 2014 | 0.48 |
Over the past year, GNMA and LMBS have become more correlated (0.72) than their long-term average of 0.48, meaning their price movements have been converging.
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Return for Risk
GNMA vs. LMBS — Risk / Return Rank
GNMA
LMBS
GNMA vs. LMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares GNMA Bond ETF (GNMA) and First Trust Low Duration Mortgage Opportunities ETF (LMBS). 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.
| GNMA | LMBS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.50 | ||
| Sortino ratioReturn per unit of downside risk | -2.29 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.57 | -0.33 |
| Calmar ratioReturn relative to maximum drawdown | 2.22 | 3.88 | -1.66 |
| Martin ratioReturn relative to average drawdown | 6.66 | 16.33 | -9.67 |
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Drawdowns
GNMA vs. LMBS - Drawdown Comparison
The maximum GNMA drawdown since its inception was -17.09%, which is greater than LMBS's maximum drawdown of -6.49%. Use the drawdown chart below to compare losses from any high point for GNMA and LMBS.
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Drawdown Indicators
| GNMA | LMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.09% | -6.49% | -10.60% |
Max Drawdown (1Y)Largest decline over 1 year | -2.61% | -1.43% | -1.18% |
Max Drawdown (3Y)Largest decline over 3 years | -7.13% | -1.72% | -5.41% |
Max Drawdown (5Y)Largest decline over 5 years | -15.83% | -6.06% | -9.77% |
Max Drawdown (10Y)Largest decline over 10 years | -17.09% | -6.49% | -10.60% |
Current DrawdownCurrent decline from peak | -1.05% | -0.17% | -0.88% |
Average DrawdownAverage peak-to-trough decline | -3.65% | -0.80% | -2.85% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.87% | 0.34% | +0.53% |
Volatility
GNMA vs. LMBS - Volatility Comparison
iShares GNMA Bond ETF (GNMA) has a higher volatility of 1.38% compared to First Trust Low Duration Mortgage Opportunities ETF (LMBS) at 0.54%. This indicates that GNMA's price experiences larger fluctuations and is considered to be riskier than LMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| GNMA | LMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.38% | 0.54% | +0.84% |
Volatility (6M)Calculated over the trailing 6-month period | 3.27% | 1.47% | +1.80% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.26% | 1.94% | +2.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.63% | 2.57% | +4.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.14% | 2.35% | +2.79% |
GNMA vs. LMBS - Expense Ratio Comparison
GNMA has a 0.15% expense ratio, which is lower than LMBS's 0.68% expense ratio.
Dividends
GNMA vs. LMBS - Dividend Comparison
GNMA's dividend yield for the trailing twelve months is around 4.22%, more than LMBS's 4.09% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GNMA iShares GNMA Bond ETF | 4.22% | 4.19% | 4.15% | 3.43% | 2.01% | 0.64% | 1.89% | 2.61% | 2.41% | 2.15% | 1.89% | 1.50% |
LMBS First Trust Low Duration Mortgage Opportunities ETF | 4.09% | 4.08% | 4.28% | 3.96% | 2.22% | 2.04% | 2.27% | 2.55% | 2.76% | 2.73% | 2.84% | 3.03% |
Frequently Asked Questions
GNMA and LMBS have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GNMA has higher volatility (1.38%) compared to LMBS (0.54%). In terms of maximum drawdown, GNMA dropped -17.09% vs LMBS's -6.49%.
On 10-year performance, LMBS leads with 2.67% vs 1.22% for GNMA. On fees, GNMA is cheaper at 0.15% per year. On volatility, LMBS has been the lower-risk option at 0.54%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, LMBS has performed better with a 2.67% return vs 1.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GNMA is cheaper with a 0.15% expense ratio, compared with 0.68% for LMBS.
GNMA has the higher dividend yield at 4.22%, compared with 4.09% for LMBS.
They also come from different issuers: iShares and First Trust. Their fees differ too: 0.15% for GNMA and 0.68% for LMBS.
LMBS currently has the higher Sharpe Ratio (2.86 vs 1.36), 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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