LMBS vs. VOO
Compare and contrast key facts about First Trust Low Duration Mortgage Opportunities ETF (LMBS) and Vanguard S&P 500 ETF (VOO).
LMBS and VOO 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. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: LMBS or VOO.
Key characteristics
| LMBS | VOO | |
|---|---|---|
| YTD Return | 1.09% | 10.48% |
| 1Y Return | 4.53% | 28.69% |
| 3Y Return (Ann) | 1.02% | 9.60% |
| 5Y Return (Ann) | 1.39% | 14.65% |
| Sharpe Ratio | 1.54 | 2.52 |
| Daily Std Dev | 2.89% | 11.57% |
| Max Drawdown | -6.49% | -33.99% |
| Current Drawdown | -0.05% | -0.06% |
Correlation
The correlation between LMBS and VOO is -0.06. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
LMBS vs. VOO - Performance Comparison
In the year-to-date period, LMBS achieves a 1.09% return, which is significantly lower than VOO's 10.48% 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. VOO - Expense Ratio Comparison
LMBS has a 0.68% expense ratio, which is higher than VOO's 0.03% expense ratio.
Risk-Adjusted Performance
LMBS vs. VOO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Low Duration Mortgage Opportunities ETF (LMBS) and Vanguard S&P 500 ETF (VOO). 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. VOO - Dividend Comparison
LMBS's dividend yield for the trailing twelve months is around 4.35%, more than VOO's 1.33% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% | 0.00% |
VOO Vanguard S&P 500 ETF | 1.33% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
LMBS vs. VOO - Drawdown Comparison
The maximum LMBS drawdown since its inception was -6.49%, smaller than the maximum VOO drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for LMBS and VOO. For additional features, visit the drawdowns tool.
Volatility
LMBS vs. VOO - Volatility Comparison
The current volatility for First Trust Low Duration Mortgage Opportunities ETF (LMBS) is 0.66%, while Vanguard S&P 500 ETF (VOO) has a volatility of 3.36%. This indicates that LMBS experiences smaller price fluctuations and is considered to be less risky than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.