LMBS vs. USFR
Compare and contrast key facts about First Trust Low Duration Mortgage Opportunities ETF (LMBS) and WisdomTree Bloomberg Floating Rate Treasury Fund (USFR).
LMBS and USFR 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. USFR is a passively managed fund by WisdomTree that tracks the performance of the Bloomberg U.S. Treasury Floating Rate Bond Index. It was launched on Feb 4, 2014.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: LMBS or USFR.
Key characteristics
| LMBS | USFR | |
|---|---|---|
| YTD Return | 1.09% | 2.20% |
| 1Y Return | 4.53% | 5.55% |
| 3Y Return (Ann) | 1.02% | 3.09% |
| 5Y Return (Ann) | 1.39% | 2.19% |
| Sharpe Ratio | 1.54 | 15.08 |
| Daily Std Dev | 2.89% | 0.37% |
| Max Drawdown | -6.49% | -1.36% |
| Current Drawdown | -0.05% | 0.00% |
Correlation
The correlation between LMBS and USFR is 0.01, 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. USFR - Performance Comparison
In the year-to-date period, LMBS achieves a 1.09% return, which is significantly lower than USFR's 2.20% 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. USFR - Expense Ratio Comparison
LMBS has a 0.68% expense ratio, which is higher than USFR's 0.15% expense ratio.
Risk-Adjusted Performance
LMBS vs. USFR - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Low Duration Mortgage Opportunities ETF (LMBS) and WisdomTree Bloomberg Floating Rate Treasury Fund (USFR). 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. USFR - Dividend Comparison
LMBS's dividend yield for the trailing twelve months is around 4.35%, less than USFR's 5.34% 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% |
USFR WisdomTree Bloomberg Floating Rate Treasury Fund | 5.34% | 5.12% | 1.78% | 0.01% | 0.40% | 2.08% | 1.67% | 1.03% | 0.29% | 0.00% | 0.00% |
Drawdowns
LMBS vs. USFR - Drawdown Comparison
The maximum LMBS drawdown since its inception was -6.49%, which is greater than USFR's maximum drawdown of -1.36%. Use the drawdown chart below to compare losses from any high point for LMBS and USFR. For additional features, visit the drawdowns tool.
Volatility
LMBS vs. USFR - Volatility Comparison
First Trust Low Duration Mortgage Opportunities ETF (LMBS) has a higher volatility of 0.66% compared to WisdomTree Bloomberg Floating Rate Treasury Fund (USFR) at 0.09%. This indicates that LMBS's price experiences larger fluctuations and is considered to be riskier than USFR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.