ILS vs. MTBA

Last updated Jun 4, 2026

ILS (Brookmont Catastrophic Bond ETF) and MTBA (Simplify MBS ETF) are both exchange-traded funds - ILS is a Nontraditional Bonds fund actively managed by Brookmont, while MTBA is a Mortgage Backed Securities fund actively managed by Simplify. Both are actively managed. Over the past year, ILS returned 7.67% vs 5.18% for MTBA. At a 0.06 correlation, their price movements are largely independent. ILS charges 1.58%/yr vs 0.15%/yr for MTBA.

Performance

ILS vs. MTBA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Brookmont Catastrophic Bond ETF (ILS) 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, ILS achieves a 1.81% return, which is significantly higher than MTBA's -0.23% return.

ILS

• 1D: 0.05%
• 1M: 0.45%
• YTD: 1.81%
• 6M: 2.12%
• 1Y: 7.67%
• 3Y*: —
• 5Y*: —
• 10Y*: —

MTBA

• 1D: -0.12%
• 1M: 0.21%
• YTD: -0.23%
• 6M: 0.18%
• 1Y: 5.18%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ILS vs. MTBA - Yearly Performance Comparison

	2026 (YTD)	2025
ILS Brookmont Catastrophic Bond ETF	1.81%	5.60%
MTBA Simplify MBS ETF	-0.23%	4.83%

Correlation

The correlation between ILS and MTBA is 0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.04
Correlation (All Time) Calculated using the full available price history since Apr 2, 2025	0.06

Return for Risk

ILS vs. MTBA — Risk / Return Rank

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

ILS

ILS Risk / Return Rank: 93
ILS Sharpe Ratio Rank: 84
ILS Sortino Ratio Rank: 92
ILS Omega Ratio Rank: 92
ILS Calmar Ratio Rank: 98
ILS Martin Ratio Rank: 97

MTBA

MTBA Risk / Return Rank: 45
MTBA Sharpe Ratio Rank: 48
MTBA Sortino Ratio Rank: 48
MTBA Omega Ratio Rank: 51
MTBA Calmar Ratio Rank: 37
MTBA Martin Ratio Rank: 39

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.

ILS vs. MTBA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Brookmont Catastrophic Bond ETF (ILS) 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.

	ILS	MTBA	Difference
Sharpe ratio: Return per unit of total volatility	2.79	1.68	+1.11
Sortino ratio: Return per unit of downside risk	4.56	2.38	+2.18
Omega ratio: Gain probability vs. loss probability	1.62	1.32	+0.30
Calmar ratio: Return relative to maximum drawdown	13.93	1.84	+12.08
Martin ratio: Return relative to average drawdown	46.57	6.28	+40.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ILS vs. MTBA - Sharpe Ratio Comparison

The current ILS Sharpe Ratio is 2.79, which is higher than the MTBA Sharpe Ratio of 1.68. The chart below compares the historical Sharpe Ratios of ILS 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.

Sharpe Ratios by Period

	ILS	MTBA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.79	1.68	+1.11
Sharpe Ratio (All Time) Calculated using the full available price history	1.90	1.30	+0.60

Drawdowns

ILS vs. MTBA - Drawdown Comparison

The maximum ILS drawdown since its inception was -1.56%, smaller than the maximum MTBA drawdown of -3.48%. Use the drawdown chart below to compare losses from any high point for ILS and MTBA.

Drawdown Indicators

	ILS	MTBA	Difference
Max Drawdown Largest peak-to-trough decline	-1.56%	-3.48%	+1.92%
Max Drawdown (1Y) Largest decline over 1 year	-0.55%	-2.82%	+2.27%
Current Drawdown Current decline from peak	0.00%	-1.60%	+1.60%
Average Drawdown Average peak-to-trough decline	-0.25%	-0.79%	+0.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.17%	0.83%	-0.66%

Volatility

ILS vs. MTBA - Volatility Comparison

The current volatility for Brookmont Catastrophic Bond ETF (ILS) is 0.88%, while Simplify MBS ETF (MTBA) has a volatility of 1.33%. This indicates that ILS experiences smaller price fluctuations and is considered to be less risky than MTBA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ILS	MTBA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.88%	1.33%	-0.45%
Volatility (6M) Calculated over the trailing 6-month period	1.69%	2.47%	-0.78%
Volatility (1Y) Calculated over the trailing 1-year period	2.77%	3.10%	-0.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.38%	3.95%	-0.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.38%	3.95%	-0.57%

ILS vs. MTBA - Expense Ratio Comparison

ILS has a 1.58% expense ratio, which is higher than MTBA's 0.15% expense ratio.

Dividends

ILS vs. MTBA - Dividend Comparison

ILS's dividend yield for the trailing twelve months is around 8.09%, more than MTBA's 6.09% yield.

Position	TTM	2025	2024	2023
ILS Brookmont Catastrophic Bond ETF	8.09%	6.06%	0.00%	0.00%
MTBA Simplify MBS ETF	6.09%	5.98%	6.03%	0.48%

Frequently Asked Questions

Can I hold both ILS and MTBA in my portfolio?

ILS and MTBA have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ILS or MTBA?

MTBA has higher volatility (1.33%) compared to ILS (0.88%). In terms of maximum drawdown, ILS dropped -1.56% vs MTBA's -3.48%.

Which ETF is better, ILS or MTBA?

On 1-year performance, ILS leads with 7.67% vs 5.18% for MTBA. On fees, MTBA is cheaper at 0.15% per year. On volatility, ILS has been the lower-risk option at 0.88%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ILS or MTBA?

Over the 1-year period, ILS has performed better with a 7.67% return vs 5.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ILS or MTBA?

MTBA is cheaper with a 0.15% expense ratio, compared with 1.58% for ILS.

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

ILS has the higher dividend yield at 8.09%, compared with 6.09% for MTBA.

What is the main difference between ILS and MTBA?

ILS is categorized as Nontraditional Bonds, while MTBA is Mortgage Backed Securities. They also come from different issuers: Brookmont and Simplify. Their fees differ too: 1.58% for ILS and 0.15% for MTBA.

Which has better risk-adjusted returns?

ILS currently has the higher Sharpe Ratio (2.79 vs 1.68), 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.