LMBS vs. VMBS
Compare and contrast key facts about First Trust Low Duration Mortgage Opportunities ETF (LMBS) and Vanguard Mortgage-Backed Securities ETF (VMBS).
LMBS and VMBS 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. VMBS is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. MBS Index. It was launched on Nov 19, 2009.
Performance
LMBS vs. VMBS - Performance Comparison
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LMBS vs. VMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LMBS First Trust Low Duration Mortgage Opportunities ETF | 0.66% | 7.05% | 5.15% | 6.10% | -3.07% | -0.91% | 1.64% | 4.10% | 1.62% | 1.68% |
VMBS Vanguard Mortgage-Backed Securities ETF | 0.41% | 8.36% | 1.70% | 5.34% | -11.90% | -1.28% | 3.76% | 6.19% | 0.91% | 2.47% |
Returns By Period
In the year-to-date period, LMBS achieves a 0.66% return, which is significantly higher than VMBS's 0.41% return. Over the past 10 years, LMBS has outperformed VMBS with an annualized return of 2.84%, while VMBS has yielded a comparatively lower 1.41% annualized return.
LMBS
- 1D
- 0.22%
- 1M
- -0.91%
- YTD
- 0.66%
- 6M
- 2.10%
- 1Y
- 5.57%
- 3Y*
- 5.69%
- 5Y*
- 2.95%
- 10Y*
- 2.84%
VMBS
- 1D
- 0.21%
- 1M
- -1.57%
- YTD
- 0.41%
- 6M
- 2.06%
- 1Y
- 5.79%
- 3Y*
- 4.29%
- 5Y*
- 0.49%
- 10Y*
- 1.41%
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LMBS vs. VMBS - Expense Ratio Comparison
LMBS has a 0.68% expense ratio, which is higher than VMBS's 0.04% expense ratio.
Return for Risk
LMBS vs. VMBS — Risk / Return Rank
LMBS
VMBS
LMBS vs. VMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Low Duration Mortgage Opportunities ETF (LMBS) and Vanguard Mortgage-Backed Securities ETF (VMBS). 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 | VMBS | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.18 | 1.16 | +1.02 |
Sortino ratioReturn per unit of downside risk | 2.91 | 1.67 | +1.24 |
Omega ratioGain probability vs. loss probability | 1.47 | 1.21 | +0.25 |
Calmar ratioReturn relative to maximum drawdown | 3.25 | 1.95 | +1.30 |
Martin ratioReturn relative to average drawdown | 13.96 | 6.10 | +7.85 |
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 | VMBS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.18 | 1.16 | +1.02 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.16 | 0.07 | +1.09 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.20 | 0.26 | +0.93 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.13 | 0.46 | +0.67 |
Correlation
The correlation between LMBS and VMBS is 0.54, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Dividends
LMBS vs. VMBS - Dividend Comparison
LMBS's dividend yield for the trailing twelve months is around 4.10%, less than VMBS's 4.23% yield.
| 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% |
VMBS Vanguard Mortgage-Backed Securities ETF | 4.23% | 4.20% | 3.94% | 3.31% | 2.35% | 1.02% | 2.01% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% |
Drawdowns
LMBS vs. VMBS - Drawdown Comparison
The maximum LMBS drawdown since its inception was -6.49%, smaller than the maximum VMBS drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for LMBS and VMBS.
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Drawdown Indicators
| LMBS | VMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.49% | -17.47% | +10.98% |
Max Drawdown (1Y)Largest decline over 1 year | -1.72% | -3.00% | +1.28% |
Max Drawdown (5Y)Largest decline over 5 years | -6.16% | -17.12% | +10.96% |
Max Drawdown (10Y)Largest decline over 10 years | -6.49% | -17.47% | +10.98% |
Current DrawdownCurrent decline from peak | -0.91% | -1.57% | +0.66% |
Average DrawdownAverage peak-to-trough decline | -0.81% | -2.51% | +1.70% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.40% | 0.96% | -0.56% |
Volatility
LMBS vs. VMBS - Volatility Comparison
The current volatility for First Trust Low Duration Mortgage Opportunities ETF (LMBS) is 0.88%, while Vanguard Mortgage-Backed Securities ETF (VMBS) has a volatility of 1.90%. This indicates that LMBS experiences smaller price fluctuations and is considered to be less risky than VMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LMBS | VMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.88% | 1.90% | -1.02% |
Volatility (6M)Calculated over the trailing 6-month period | 1.37% | 2.89% | -1.52% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.57% | 5.00% | -2.43% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.55% | 6.71% | -4.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.38% | 5.37% | -2.99% |