LMBS vs. MBB
LMBS (First Trust Low Duration Mortgage Opportunities ETF) and MBB (iShares MBS Bond ETF) are both Mortgage Backed Securities funds. LMBS is actively managed, while MBB is passively managed. Over the past 10 years, LMBS returned 2.68%/yr vs 1.34%/yr for MBB. A 0.55 correlation means they provide meaningful diversification when combined. LMBS charges 0.68%/yr vs 0.06%/yr for MBB.
Performance
LMBS vs. MBB - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, LMBS achieves a 1.60% return, which is significantly higher than MBB's 1.26% return. Over the past 10 years, LMBS has outperformed MBB with an annualized return of 2.68%, while MBB has yielded a comparatively lower 1.34% annualized return.
LMBS
- 1D
- 0.16%
- 1M
- 0.56%
- YTD
- 1.60%
- 6M
- 1.40%
- 1Y
- 5.52%
- 3Y*
- 5.86%
- 5Y*
- 3.15%
- 10Y*
- 2.68%
MBB
- 1D
- 0.43%
- 1M
- 1.07%
- YTD
- 1.26%
- 6M
- 1.05%
- 1Y
- 5.71%
- 3Y*
- 4.50%
- 5Y*
- 0.54%
- 10Y*
- 1.34%
LMBS vs. MBB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LMBS First Trust Low Duration Mortgage Opportunities ETF | 1.60% | 7.05% | 5.15% | 6.10% | -3.07% | -0.91% | 1.64% | 4.10% | 1.62% | 1.68% |
MBB iShares MBS Bond ETF | 1.26% | 8.38% | 1.31% | 5.01% | -11.74% | -1.43% | 4.08% | 6.18% | 0.82% | 2.49% |
Correlation
The correlation between LMBS and MBB is 0.80, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.80 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.78 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.70 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.60 |
Correlation (All Time) Calculated using the full available price history since Nov 5, 2014 | 0.55 |
Over the past year, LMBS and MBB have become more correlated (0.80) than their long-term average of 0.55, meaning their price movements have been converging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
LMBS vs. MBB — Risk / Return Rank
LMBS
MBB
LMBS vs. MBB - 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 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.
| LMBS | MBB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.57 | ||
| Sortino ratioReturn per unit of downside risk | +2.47 | ||
| Omega ratioGain probability vs. loss probability | 1.57 | 1.23 | +0.34 |
| Calmar ratioReturn relative to maximum drawdown | 3.88 | 1.95 | +1.93 |
| Martin ratioReturn relative to average drawdown | 16.32 | 6.07 | +10.26 |
Loading charts...
Drawdowns
LMBS vs. MBB - Drawdown Comparison
The maximum LMBS drawdown since its inception was -6.49%, smaller than the maximum MBB drawdown of -17.64%. Use the drawdown chart below to compare losses from any high point for LMBS and MBB.
Loading charts...
Drawdown Indicators
| LMBS | MBB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.49% | -17.64% | +11.15% |
Max Drawdown (1Y)Largest decline over 1 year | -1.43% | -2.94% | +1.51% |
Max Drawdown (3Y)Largest decline over 3 years | -1.72% | -7.68% | +5.96% |
Max Drawdown (5Y)Largest decline over 5 years | -6.06% | -17.19% | +11.13% |
Max Drawdown (10Y)Largest decline over 10 years | -6.49% | -17.64% | +11.15% |
Current DrawdownCurrent decline from peak | -0.01% | -0.85% | +0.84% |
Average DrawdownAverage peak-to-trough decline | -0.80% | -2.34% | +1.54% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.34% | 0.94% | -0.60% |
Volatility
LMBS vs. MBB - Volatility Comparison
The current volatility for First Trust Low Duration Mortgage Opportunities ETF (LMBS) is 0.56%, while iShares MBS Bond ETF (MBB) has a volatility of 1.32%. This indicates that LMBS 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.
Loading charts...
Volatility by Period
| LMBS | MBB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.56% | 1.32% | -0.76% |
Volatility (6M)Calculated over the trailing 6-month period | 1.48% | 3.34% | -1.86% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.94% | 4.47% | -2.53% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.57% | 6.83% | -4.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.35% | 5.32% | -2.97% |
LMBS vs. MBB - Expense Ratio Comparison
LMBS has a 0.68% expense ratio, which is higher than MBB's 0.06% expense ratio.
Dividends
LMBS vs. MBB - Dividend Comparison
LMBS's dividend yield for the trailing twelve months is around 4.09%, less than MBB's 4.25% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
MBB iShares MBS Bond ETF | 4.25% | 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
LMBS and MBB 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.
MBB has higher volatility (1.32%) compared to LMBS (0.56%). In terms of maximum drawdown, LMBS dropped -6.49% vs MBB's -17.64%.
On 10-year performance, LMBS leads with 2.68% vs 1.34% for MBB. On fees, MBB is cheaper at 0.06% per year. On volatility, LMBS has been the lower-risk option at 0.56%. 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 2.68% return vs 1.34%. 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 0.68% for LMBS.
MBB has the higher dividend yield at 4.25%, compared with 4.09% for LMBS.
They also come from different issuers: First Trust and iShares. Their fees differ too: 0.68% for LMBS and 0.06% for MBB.
LMBS currently has the higher Sharpe Ratio (2.86 vs 1.29), 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.
Find the right allocation for LMBS and MBB
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer