IEF vs. MBB
IEF (iShares 7-10 Year Treasury Bond ETF) and MBB (iShares MBS Bond ETF) are both exchange-traded funds - IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index, while MBB is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index. Both are passively managed. Over the past 10 years, IEF returned 0.63%/yr vs 1.30%/yr for MBB. Their correlation of 0.80 suggests significant overlap in exposure. IEF charges 0.15%/yr vs 0.06%/yr for MBB.
Performance
IEF vs. MBB - Performance Comparison
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Returns By Period
In the year-to-date period, IEF achieves a -0.66% return, which is significantly lower than MBB's 0.58% return. Over the past 10 years, IEF has underperformed MBB with an annualized return of 0.63%, while MBB has yielded a comparatively higher 1.30% annualized return.
IEF
- 1D
- -0.25%
- 1M
- -0.08%
- YTD
- -0.66%
- 6M
- -1.17%
- 1Y
- 4.06%
- 3Y*
- 2.47%
- 5Y*
- -1.14%
- 10Y*
- 0.63%
MBB
- 1D
- -0.23%
- 1M
- 0.31%
- YTD
- 0.58%
- 6M
- 0.71%
- 1Y
- 6.76%
- 3Y*
- 4.36%
- 5Y*
- 0.34%
- 10Y*
- 1.30%
IEF vs. MBB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | -0.66% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
MBB iShares MBS Bond ETF | 0.58% | 8.38% | 1.31% | 5.01% | -11.74% | -1.43% | 4.08% | 6.18% | 0.82% | 2.49% |
Correlation
The correlation between IEF and MBB is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.94 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.93 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.87 |
Correlation (All Time) Calculated using the full available price history since Mar 19, 2007 | 0.80 |
The correlation between IEF and MBB shifts across timeframes, from 0.80 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
IEF vs. MBB — Risk / Return Rank
IEF
MBB
IEF vs. MBB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 7-10 Year Treasury Bond ETF (IEF) 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.
| IEF | MBB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.65 | ||
| Sortino ratioReturn per unit of downside risk | -0.93 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.27 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 1.00 | 2.31 | -1.30 |
| Martin ratioReturn relative to average drawdown | 2.98 | 7.64 | -4.66 |
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
| IEF | MBB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.85 | 1.51 | -0.65 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.15 | 0.05 | -0.20 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.10 | 0.25 | -0.15 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.58 | -0.08 |
Drawdowns
IEF vs. MBB - Drawdown Comparison
The maximum IEF drawdown since its inception was -23.93%, which is greater than MBB's maximum drawdown of -17.64%. Use the drawdown chart below to compare losses from any high point for IEF and MBB.
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Drawdown Indicators
| IEF | MBB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.93% | -17.64% | -6.29% |
Max Drawdown (1Y)Largest decline over 1 year | -4.07% | -2.94% | -1.13% |
Max Drawdown (3Y)Largest decline over 3 years | -7.74% | -7.68% | -0.06% |
Max Drawdown (5Y)Largest decline over 5 years | -21.40% | -17.19% | -4.21% |
Max Drawdown (10Y)Largest decline over 10 years | -23.93% | -17.64% | -6.29% |
Current DrawdownCurrent decline from peak | -11.35% | -1.52% | -9.83% |
Average DrawdownAverage peak-to-trough decline | -5.34% | -2.35% | -2.99% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.37% | 0.89% | +0.48% |
Volatility
IEF vs. MBB - Volatility Comparison
iShares 7-10 Year Treasury Bond ETF (IEF) and iShares MBS Bond ETF (MBB) have volatilities of 1.54% and 1.59%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEF | MBB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.54% | 1.59% | -0.05% |
Volatility (6M)Calculated over the trailing 6-month period | 3.34% | 3.23% | +0.11% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.78% | 4.51% | +0.27% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.71% | 6.81% | +0.90% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.62% | 5.31% | +1.31% |
IEF vs. MBB - Expense Ratio Comparison
IEF has a 0.15% 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%.
Dividends
IEF vs. MBB - Dividend Comparison
IEF's dividend yield for the trailing twelve months is around 3.90%, less than MBB's 4.28% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.90% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
MBB iShares MBS Bond ETF | 4.28% | 4.21% | 3.94% | 3.40% | 2.31% | 1.05% | 2.10% | 2.77% | 2.64% | 2.23% | 2.58% | 2.66% |
Frequently Asked Questions
With a correlation of 0.94, IEF and MBB move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
MBB has higher volatility (1.59%) compared to IEF (1.54%). In terms of maximum drawdown, IEF dropped -23.93% vs MBB's -17.64%.
On 10-year performance, MBB leads with 1.30% vs 0.63% for IEF. On fees, MBB is cheaper at 0.06% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, MBB has performed better with a 1.30% return vs 0.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MBB is cheaper with a 0.06% expense ratio, compared with 0.15% for IEF.
MBB has the higher dividend yield at 4.28%, compared with 3.90% for IEF.
IEF is categorized as Government Bonds, while MBB is Mortgage Backed Securities. IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while MBB tracks Barclays Capital U.S. MBS Index. Their fees differ too: 0.15% for IEF and 0.06% for MBB.
MBB currently has the higher Sharpe Ratio (1.51 vs 0.85), 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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