LMBS vs. AGG
LMBS (First Trust Low Duration Mortgage Opportunities ETF) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - LMBS is a Mortgage Backed Securities fund actively managed by First Trust, while AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index. LMBS is actively managed, while AGG is passively managed. Over the past 10 years, LMBS returned 2.66%/yr vs 1.53%/yr for AGG. A 0.55 correlation means they provide meaningful diversification when combined. LMBS charges 0.68%/yr vs 0.03%/yr for AGG.
Performance
LMBS vs. AGG - Performance Comparison
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Returns By Period
In the year-to-date period, LMBS achieves a 1.41% return, which is significantly higher than AGG's 0.39% return. Over the past 10 years, LMBS has outperformed AGG with an annualized return of 2.66%, while AGG has yielded a comparatively lower 1.53% annualized return.
LMBS
- 1D
- -0.02%
- 1M
- 0.37%
- YTD
- 1.41%
- 6M
- 1.39%
- 1Y
- 5.62%
- 3Y*
- 5.79%
- 5Y*
- 3.09%
- 10Y*
- 2.66%
AGG
- 1D
- -0.27%
- 1M
- 0.53%
- YTD
- 0.39%
- 6M
- 0.47%
- 1Y
- 4.45%
- 3Y*
- 3.94%
- 5Y*
- 0.06%
- 10Y*
- 1.53%
LMBS vs. AGG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LMBS First Trust Low Duration Mortgage Opportunities ETF | 1.41% | 7.05% | 5.15% | 6.10% | -3.07% | -0.91% | 1.64% | 4.10% | 1.62% | 1.68% |
AGG iShares Core U.S. Aggregate Bond ETF | 0.39% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.55% |
Correlation
The correlation between LMBS and AGG is 0.80, 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 | 0.80 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.77 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.70 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Nov 5, 2014 | 0.55 |
Over the past year, LMBS and AGG have become more correlated (0.80) than their long-term average of 0.55, meaning their price movements have been converging.
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Return for Risk
LMBS vs. AGG — Risk / Return Rank
LMBS
AGG
LMBS vs. AGG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Low Duration Mortgage Opportunities ETF (LMBS) and iShares Core U.S. Aggregate Bond ETF (AGG). 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.
| LMBS | AGG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.73 | ||
| Sortino ratioReturn per unit of downside risk | +2.70 | ||
| Omega ratioGain probability vs. loss probability | 1.58 | 1.21 | +0.37 |
| Calmar ratioReturn relative to maximum drawdown | 3.95 | 1.62 | +2.33 |
| Martin ratioReturn relative to average drawdown | 16.62 | 4.69 | +11.94 |
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Drawdowns
LMBS vs. AGG - Drawdown Comparison
The maximum LMBS drawdown since its inception was -6.49%, smaller than the maximum AGG drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for LMBS and AGG.
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Drawdown Indicators
| LMBS | AGG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.49% | -18.43% | +11.94% |
Max Drawdown (1Y)Largest decline over 1 year | -1.43% | -2.76% | +1.33% |
Max Drawdown (3Y)Largest decline over 3 years | -1.72% | -6.11% | +4.39% |
Max Drawdown (5Y)Largest decline over 5 years | -6.06% | -17.82% | +11.76% |
Max Drawdown (10Y)Largest decline over 10 years | -6.49% | -18.43% | +11.94% |
Current DrawdownCurrent decline from peak | -0.20% | -2.01% | +1.81% |
Average DrawdownAverage peak-to-trough decline | -0.80% | -2.71% | +1.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.34% | 0.95% | -0.61% |
Volatility
LMBS vs. AGG - Volatility Comparison
The current volatility for First Trust Low Duration Mortgage Opportunities ETF (LMBS) is 0.55%, while iShares Core U.S. Aggregate Bond ETF (AGG) has a volatility of 1.11%. This indicates that LMBS experiences smaller price fluctuations and is considered to be less risky than AGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LMBS | AGG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.55% | 1.11% | -0.56% |
Volatility (6M)Calculated over the trailing 6-month period | 1.47% | 2.84% | -1.37% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.95% | 3.82% | -1.87% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.57% | 6.10% | -3.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.35% | 5.41% | -3.06% |
LMBS vs. AGG - Expense Ratio Comparison
LMBS has a 0.68% expense ratio, which is higher than AGG's 0.03% expense ratio.
Dividends
LMBS vs. AGG - Dividend Comparison
LMBS's dividend yield for the trailing twelve months is around 4.09%, more than AGG's 3.98% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 3.98% | 3.89% | 3.74% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.72% | 2.32% | 2.39% | 2.45% |
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
LMBS and AGG have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AGG has higher volatility (1.11%) compared to LMBS (0.55%). In terms of maximum drawdown, LMBS dropped -6.49% vs AGG's -18.43%.
On 10-year performance, LMBS leads with 2.66% vs 1.53% for AGG. On fees, AGG is cheaper at 0.03% per year. On volatility, LMBS has been the lower-risk option at 0.55%. 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 2.66% return vs 1.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
AGG is cheaper with a 0.03% expense ratio, compared with 0.68% for LMBS.
LMBS has the higher dividend yield at 4.09%, compared with 3.98% for AGG.
LMBS is categorized as Mortgage Backed Securities, while AGG is Total Bond Market. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.68% for LMBS and 0.03% for AGG.
LMBS currently has the higher Sharpe Ratio (2.91 vs 1.17), 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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