LMBS vs. FMB
Compare and contrast key facts about First Trust Low Duration Mortgage Opportunities ETF (LMBS) and First Trust Managed Municipal ETF (FMB).
LMBS and FMB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. LMBS is an actively managed fund by First Trust. It was launched on Nov 4, 2014. FMB is an actively managed fund by First Trust. It was launched on May 13, 2014.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: LMBS or FMB.
Key characteristics
| LMBS | FMB | |
|---|---|---|
| YTD Return | 1.09% | 0.27% |
| 1Y Return | 4.53% | 3.90% |
| 3Y Return (Ann) | 1.02% | -0.94% |
| 5Y Return (Ann) | 1.39% | 1.29% |
| Sharpe Ratio | 1.54 | 0.96 |
| Daily Std Dev | 2.89% | 4.07% |
| Max Drawdown | -6.49% | -14.16% |
| Current Drawdown | -0.05% | -4.46% |
Correlation
The correlation between LMBS and FMB is 0.29, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
LMBS vs. FMB - Performance Comparison
In the year-to-date period, LMBS achieves a 1.09% return, which is significantly higher than FMB's 0.27% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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LMBS vs. FMB - Expense Ratio Comparison
LMBS has a 0.68% expense ratio, which is higher than FMB's 0.50% expense ratio.
Risk-Adjusted Performance
LMBS vs. FMB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Low Duration Mortgage Opportunities ETF (LMBS) and First Trust Managed Municipal ETF (FMB). 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.
Dividends
LMBS vs. FMB - Dividend Comparison
LMBS's dividend yield for the trailing twelve months is around 4.35%, more than FMB's 3.05% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
LMBS First Trust Low Duration Mortgage Opportunities ETF | 4.35% | 3.96% | 2.22% | 2.04% | 2.27% | 2.50% | 2.76% | 2.73% | 2.84% | 3.03% | 0.37% |
FMB First Trust Managed Municipal ETF | 3.05% | 2.98% | 2.47% | 1.96% | 2.19% | 2.47% | 2.58% | 2.49% | 2.93% | 3.07% | 1.70% |
Drawdowns
LMBS vs. FMB - Drawdown Comparison
The maximum LMBS drawdown since its inception was -6.49%, smaller than the maximum FMB drawdown of -14.16%. Use the drawdown chart below to compare losses from any high point for LMBS and FMB. For additional features, visit the drawdowns tool.
Volatility
LMBS vs. FMB - Volatility Comparison
First Trust Low Duration Mortgage Opportunities ETF (LMBS) has a higher volatility of 0.66% compared to First Trust Managed Municipal ETF (FMB) at 0.61%. This indicates that LMBS's price experiences larger fluctuations and is considered to be riskier than FMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.