LMBS vs. MBSD
LMBS (First Trust Low Duration Mortgage Opportunities ETF) and MBSD (FlexShares Disciplined Duration MBS Index Fund) are both Mortgage Backed Securities funds. LMBS is actively managed, while MBSD is passively managed. Over the past 10 years, LMBS returned 2.67%/yr vs 1.37%/yr for MBSD. At a 0.43 correlation, their price movements are largely independent. LMBS charges 0.68%/yr vs 0.20%/yr for MBSD.
Performance
LMBS vs. MBSD - Performance Comparison
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Returns By Period
In the year-to-date period, LMBS achieves a 1.24% return, which is significantly higher than MBSD's 0.42% return. Over the past 10 years, LMBS has outperformed MBSD with an annualized return of 2.67%, while MBSD has yielded a comparatively lower 1.37% annualized return.
LMBS
- 1D
- -0.10%
- 1M
- 0.11%
- YTD
- 1.24%
- 6M
- 1.47%
- 1Y
- 6.09%
- 3Y*
- 5.73%
- 5Y*
- 3.03%
- 10Y*
- 2.67%
MBSD
- 1D
- -0.22%
- 1M
- 0.16%
- YTD
- 0.42%
- 6M
- 0.52%
- 1Y
- 5.26%
- 3Y*
- 4.31%
- 5Y*
- 0.62%
- 10Y*
- 1.37%
LMBS vs. MBSD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LMBS First Trust Low Duration Mortgage Opportunities ETF | 1.24% | 7.05% | 5.15% | 6.10% | -3.07% | -0.91% | 1.64% | 4.10% | 1.62% | 1.68% |
MBSD FlexShares Disciplined Duration MBS Index Fund | 0.42% | 7.12% | 2.30% | 4.46% | -9.49% | -1.40% | 5.43% | 6.05% | 0.32% | 0.86% |
Correlation
The correlation between LMBS and MBSD is 0.71, 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 | 0.71 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.71 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.64 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Nov 6, 2014 | 0.43 |
Over the past year, LMBS and MBSD have become more correlated (0.71) than their long-term average of 0.43, meaning their price movements have been converging.
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Return for Risk
LMBS vs. MBSD — Risk / Return Rank
LMBS
MBSD
LMBS vs. MBSD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Low Duration Mortgage Opportunities ETF (LMBS) and FlexShares Disciplined Duration MBS Index Fund (MBSD). 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.
| LMBS | MBSD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.60 | ||
| Sortino ratioReturn per unit of downside risk | +2.57 | ||
| Omega ratioGain probability vs. loss probability | 1.62 | 1.27 | +0.35 |
| Calmar ratioReturn relative to maximum drawdown | 4.28 | 2.43 | +1.85 |
| Martin ratioReturn relative to average drawdown | 18.25 | 7.71 | +10.54 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| LMBS | MBSD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.10 | 1.50 | +1.60 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.19 | 0.12 | +1.07 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.14 | 0.32 | +0.81 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.13 | 0.38 | +0.76 |
Drawdowns
LMBS vs. MBSD - Drawdown Comparison
The maximum LMBS drawdown since its inception was -6.49%, smaller than the maximum MBSD drawdown of -14.36%. Use the drawdown chart below to compare losses from any high point for LMBS and MBSD.
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Drawdown Indicators
| LMBS | MBSD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.49% | -14.36% | +7.87% |
Max Drawdown (1Y)Largest decline over 1 year | -1.43% | -2.17% | +0.74% |
Max Drawdown (3Y)Largest decline over 3 years | -1.72% | -4.68% | +2.96% |
Max Drawdown (5Y)Largest decline over 5 years | -6.12% | -14.10% | +7.98% |
Max Drawdown (10Y)Largest decline over 10 years | -6.49% | -14.36% | +7.87% |
Current DrawdownCurrent decline from peak | -0.34% | -1.19% | +0.85% |
Average DrawdownAverage peak-to-trough decline | -0.80% | -2.81% | +2.01% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.33% | 0.68% | -0.35% |
Volatility
LMBS vs. MBSD - Volatility Comparison
The current volatility for First Trust Low Duration Mortgage Opportunities ETF (LMBS) is 0.68%, while FlexShares Disciplined Duration MBS Index Fund (MBSD) has a volatility of 1.15%. This indicates that LMBS experiences smaller price fluctuations and is considered to be less risky than MBSD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LMBS | MBSD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.68% | 1.15% | -0.47% |
Volatility (6M)Calculated over the trailing 6-month period | 1.45% | 2.47% | -1.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.97% | 3.53% | -1.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.56% | 5.15% | -2.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.36% | 4.26% | -1.90% |
LMBS vs. MBSD - Expense Ratio Comparison
LMBS has a 0.68% expense ratio, which is higher than MBSD's 0.20% expense ratio.
Dividends
LMBS vs. MBSD - Dividend Comparison
LMBS's dividend yield for the trailing twelve months is around 4.10%, less than MBSD's 4.19% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LMBS First Trust Low Duration Mortgage Opportunities ETF | 4.10% | 4.08% | 4.28% | 3.96% | 2.22% | 2.04% | 2.27% | 2.55% | 2.76% | 2.73% | 2.84% | 3.03% |
MBSD FlexShares Disciplined Duration MBS Index Fund | 4.19% | 4.23% | 3.91% | 3.39% | 3.03% | 2.41% | 2.78% | 3.42% | 3.22% | 3.30% | 3.02% | 3.46% |
Frequently Asked Questions
LMBS and MBSD have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MBSD has higher volatility (1.15%) compared to LMBS (0.68%). In terms of maximum drawdown, LMBS dropped -6.49% vs MBSD's -14.36%.
On 10-year performance, LMBS leads with 2.67% vs 1.37% for MBSD. On fees, MBSD is cheaper at 0.20% per year. On volatility, LMBS has been the lower-risk option at 0.68%. 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 2.67% return vs 1.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MBSD is cheaper with a 0.20% expense ratio, compared with 0.68% for LMBS.
MBSD has the higher dividend yield at 4.19%, compared with 4.10% for LMBS.
They also come from different issuers: First Trust and Northern Trust. Their fees differ too: 0.68% for LMBS and 0.20% for MBSD.
LMBS currently has the higher Sharpe Ratio (3.10 vs 1.50), 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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