IEI vs. MBB
IEI (iShares 3-7 Year Treasury Bond ETF) and MBB (iShares MBS Bond ETF) are both exchange-traded funds - IEI is a Government Bonds fund tracking the ICE U.S. Treasury 3-7 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, IEI returned 1.25%/yr vs 1.33%/yr for MBB. A 0.80 correlation means they provide meaningful diversification when combined. IEI charges 0.15%/yr vs 0.06%/yr for MBB.
Performance
IEI vs. MBB - Performance Comparison
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Returns By Period
In the year-to-date period, IEI achieves a -0.18% return, which is significantly lower than MBB's 1.01% return. Over the past 10 years, IEI has underperformed MBB with an annualized return of 1.25%, while MBB has yielded a comparatively higher 1.33% annualized return.
IEI
- 1D
- 0.43%
- 1M
- 0.16%
- YTD
- -0.18%
- 6M
- 0.03%
- 1Y
- 3.35%
- 3Y*
- 3.65%
- 5Y*
- 0.24%
- 10Y*
- 1.25%
MBB
- 1D
- 0.65%
- 1M
- 0.67%
- YTD
- 1.01%
- 6M
- 1.29%
- 1Y
- 6.49%
- 3Y*
- 4.43%
- 5Y*
- 0.41%
- 10Y*
- 1.33%
IEI vs. MBB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | -0.18% | 6.96% | 1.81% | 4.42% | -9.51% | -2.54% | 6.95% | 5.71% | 1.36% | 1.22% |
MBB iShares MBS Bond ETF | 1.01% | 8.38% | 1.31% | 5.01% | -11.74% | -1.43% | 4.08% | 6.18% | 0.82% | 2.49% |
Correlation
The correlation between IEI and MBB is 0.91, 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 | 0.91 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.92 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.92 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since Mar 16, 2007 | 0.80 |
The correlation between IEI and MBB shifts across timeframes, from 0.80 (all time) to 0.92 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
IEI vs. MBB — Risk / Return Rank
IEI
MBB
IEI vs. MBB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 3-7 Year Treasury Bond ETF (IEI) 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.
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.
| IEI | MBB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.34 | ||
| Sortino ratioReturn per unit of downside risk | -0.44 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.26 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 1.35 | 2.21 | -0.87 |
| Martin ratioReturn relative to average drawdown | 3.80 | 7.06 | -3.26 |
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Drawdowns
IEI vs. MBB - Drawdown Comparison
The maximum IEI drawdown since its inception was -14.60%, smaller than the maximum MBB drawdown of -17.64%. Use the drawdown chart below to compare losses from any high point for IEI and MBB.
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Drawdown Indicators
| IEI | MBB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.60% | -17.64% | +3.04% |
Max Drawdown (1Y)Largest decline over 1 year | -2.50% | -2.94% | +0.44% |
Max Drawdown (3Y)Largest decline over 3 years | -3.66% | -7.68% | +4.02% |
Max Drawdown (5Y)Largest decline over 5 years | -13.88% | -17.19% | +3.31% |
Max Drawdown (10Y)Largest decline over 10 years | -14.60% | -17.64% | +3.04% |
Current DrawdownCurrent decline from peak | -1.62% | -1.09% | -0.53% |
Average DrawdownAverage peak-to-trough decline | -2.67% | -2.35% | -0.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.88% | 0.92% | -0.04% |
Volatility
IEI vs. MBB - Volatility Comparison
The current volatility for iShares 3-7 Year Treasury Bond ETF (IEI) is 0.97%, while iShares MBS Bond ETF (MBB) has a volatility of 1.57%. This indicates that IEI experiences smaller price fluctuations and is considered to be less risky than MBB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEI | MBB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.97% | 1.57% | -0.60% |
Volatility (6M)Calculated over the trailing 6-month period | 2.19% | 3.31% | -1.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.01% | 4.47% | -1.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.78% | 6.82% | -2.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.93% | 5.31% | -1.38% |
IEI vs. MBB - Expense Ratio Comparison
IEI 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
IEI vs. MBB - Dividend Comparison
IEI's dividend yield for the trailing twelve months is around 3.63%, less than MBB's 4.26% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | 3.63% | 3.48% | 3.18% | 2.36% | 1.37% | 0.73% | 1.12% | 2.01% | 1.95% | 1.51% | 1.33% | 1.39% |
MBB iShares MBS Bond ETF | 4.26% | 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 0.91, IEI 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 (1.57%) compared to IEI (0.97%). In terms of maximum drawdown, IEI dropped -14.60% vs MBB's -17.64%.
On 10-year performance, MBB leads with 1.33% vs 1.25% for IEI. On fees, MBB is cheaper at 0.06% per year. On volatility, IEI has been the lower-risk option at 0.97%. 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 1.33% return vs 1.25%. 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 IEI.
MBB has the higher dividend yield at 4.26%, compared with 3.63% for IEI.
IEI is categorized as Government Bonds, while MBB is Mortgage Backed Securities. IEI tracks ICE U.S. Treasury 3-7 Year Bond Index, while MBB tracks Barclays Capital U.S. MBS Index. Their fees differ too: 0.15% for IEI and 0.06% for MBB.
MBB currently has the higher Sharpe Ratio (1.46 vs 1.12), 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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