LMBS vs. NFTY

Last updated Jun 4, 2026

LMBS (First Trust Low Duration Mortgage Opportunities ETF) and NFTY (First Trust India NIFTY 50 Equal Weight ETF) are both exchange-traded funds - LMBS is a Mortgage Backed Securities fund actively managed by First Trust, while NFTY is a Asia Pacific Equities fund tracking the NIFTY 50 Equal Weight Index. LMBS is actively managed, while NFTY is passively managed. Over the past 10 years, LMBS returned 2.67%/yr vs 8.13%/yr for NFTY. At a 0.01 correlation, their price movements are largely independent. LMBS charges 0.68%/yr vs 0.80%/yr for NFTY.

Performance

LMBS vs. NFTY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Low Duration Mortgage Opportunities ETF (LMBS) and First Trust India NIFTY 50 Equal Weight ETF (NFTY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LMBS achieves a 1.24% return, which is significantly higher than NFTY's -9.70% return. Over the past 10 years, LMBS has underperformed NFTY with an annualized return of 2.67%, while NFTY has yielded a comparatively higher 8.13% 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%

NFTY

• 1D: -1.34%
• 1M: -1.64%
• YTD: -9.70%
• 6M: -7.99%
• 1Y: -8.48%
• 3Y*: 5.72%
• 5Y*: 4.62%
• 10Y*: 8.13%

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

LMBS vs. NFTY - 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%
NFTY First Trust India NIFTY 50 Equal Weight ETF	-9.70%	5.47%	5.18%	24.00%	-3.46%	26.83%	10.04%	0.58%	-1.51%	21.78%

Correlation

The correlation between LMBS and NFTY is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.15
Correlation (5Y) Calculated over the trailing 5-year period	0.09
Correlation (10Y) Calculated over the trailing 10-year period	0.03
Correlation (All Time) Calculated using the full available price history since Nov 6, 2014	0.01

Over the past year, LMBS and NFTY have become more correlated (0.25) than their long-term average of 0.01, meaning their price movements have been converging.

Return for Risk

LMBS vs. NFTY — Risk / Return Rank

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

LMBS

LMBS Risk / Return Rank: 88
LMBS Sharpe Ratio Rank: 90
LMBS Sortino Ratio Rank: 93
LMBS Omega Ratio Rank: 92
LMBS Calmar Ratio Rank: 81
LMBS Martin Ratio Rank: 86

NFTY

NFTY Risk / Return Rank: 3
NFTY Sharpe Ratio Rank: 4
NFTY Sortino Ratio Rank: 4
NFTY Omega Ratio Rank: 4
NFTY Calmar Ratio Rank: 4
NFTY Martin Ratio Rank: 2

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.

LMBS vs. NFTY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Low Duration Mortgage Opportunities ETF (LMBS) and First Trust India NIFTY 50 Equal Weight ETF (NFTY). 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	NFTY	Difference
Sharpe ratio Return per unit of total volatility	3.10	-0.58	+3.68
Sortino ratio Return per unit of downside risk	4.79	-0.78	+5.57
Omega ratio Gain probability vs. loss probability	1.62	0.91	+0.71
Calmar ratio Return relative to maximum drawdown	4.28	-0.53	+4.81
Martin ratio Return relative to average drawdown	18.25	-1.39	+19.63
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LMBS vs. NFTY - Sharpe Ratio Comparison

The current LMBS Sharpe Ratio is 3.10, which is higher than the NFTY Sharpe Ratio of -0.58. The chart below compares the historical Sharpe Ratios of LMBS and NFTY, 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

	LMBS	NFTY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.10	-0.58	+3.68
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.19	0.27	+0.92
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.14	0.39	+0.74
Sharpe Ratio (All Time) Calculated using the full available price history	1.13	0.28	+0.85

Drawdowns

LMBS vs. NFTY - Drawdown Comparison

The maximum LMBS drawdown since its inception was -6.49%, smaller than the maximum NFTY drawdown of -47.67%. Use the drawdown chart below to compare losses from any high point for LMBS and NFTY.

Drawdown Indicators

	LMBS	NFTY	Difference
Max Drawdown Largest peak-to-trough decline	-6.49%	-47.67%	+41.18%
Max Drawdown (1Y) Largest decline over 1 year	-1.43%	-16.14%	+14.71%
Max Drawdown (3Y) Largest decline over 3 years	-1.72%	-21.55%	+19.83%
Max Drawdown (5Y) Largest decline over 5 years	-6.12%	-21.55%	+15.43%
Max Drawdown (10Y) Largest decline over 10 years	-6.49%	-47.67%	+41.18%
Current Drawdown Current decline from peak	-0.34%	-17.45%	+17.11%
Average Drawdown Average peak-to-trough decline	-0.80%	-9.58%	+8.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.33%	6.12%	-5.79%

Volatility

LMBS vs. NFTY - Volatility Comparison

The current volatility for First Trust Low Duration Mortgage Opportunities ETF (LMBS) is 0.68%, while First Trust India NIFTY 50 Equal Weight ETF (NFTY) has a volatility of 4.58%. This indicates that LMBS experiences smaller price fluctuations and is considered to be less risky than NFTY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LMBS	NFTY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.68%	4.58%	-3.90%
Volatility (6M) Calculated over the trailing 6-month period	1.45%	12.57%	-11.12%
Volatility (1Y) Calculated over the trailing 1-year period	1.97%	14.72%	-12.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.56%	17.39%	-14.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.36%	20.72%	-18.36%

LMBS vs. NFTY - Expense Ratio Comparison

LMBS has a 0.68% expense ratio, which is lower than NFTY's 0.80% expense ratio.

Dividends

LMBS vs. NFTY - Dividend Comparison

LMBS's dividend yield for the trailing twelve months is around 4.10%, more than NFTY's 1.96% 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%
NFTY First Trust India NIFTY 50 Equal Weight ETF	1.96%	1.24%	1.61%	0.13%	5.89%	1.53%	0.61%	0.97%	0.00%	4.10%	3.28%	4.39%

Frequently Asked Questions

Can I hold both LMBS and NFTY in my portfolio?

LMBS and NFTY have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LMBS or NFTY?

NFTY has higher volatility (4.58%) compared to LMBS (0.68%). In terms of maximum drawdown, LMBS dropped -6.49% vs NFTY's -47.67%.

Which ETF is better, LMBS or NFTY?

On 10-year performance, NFTY leads with 8.13% vs 2.67% for LMBS. On fees, LMBS is cheaper at 0.68% 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.

Which ETF has performed better, LMBS or NFTY?

Over the 10-year period, NFTY has performed better with a 8.13% return vs 2.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LMBS or NFTY?

LMBS is cheaper with a 0.68% expense ratio, compared with 0.80% for NFTY.

Which ETF pays a higher dividend yield, LMBS or NFTY?

LMBS has the higher dividend yield at 4.10%, compared with 1.96% for NFTY.

What is the main difference between LMBS and NFTY?

LMBS is categorized as Mortgage Backed Securities, while NFTY is Asia Pacific Equities. Their fees differ too: 0.68% for LMBS and 0.80% for NFTY.

Which has better risk-adjusted returns?

LMBS currently has the higher Sharpe Ratio (3.10 vs -0.58), 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.