MBB vs. IEF
MBB (iShares MBS Bond ETF) and IEF (iShares 7-10 Year Treasury Bond ETF) are both exchange-traded funds - MBB is a Mortgage Backed Securities fund tracking the Bloomberg U.S. MBS Index, while IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index. Both are passively managed. Over the past 10 years, MBB returned 1.15%/yr vs 0.40%/yr for IEF. Their correlation of 0.80 means they have usually moved in the same direction. MBB charges 0.04%/yr vs 0.15%/yr for IEF.
Performance
MBB vs. IEF - Performance Comparison
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Returns By Period
In the year-to-date period, MBB achieves a -0.34% return, which is significantly higher than IEF's -1.44% return. Over the past 10 years, MBB has outperformed IEF with an annualized return of 1.15%, while IEF has yielded a comparatively lower 0.40% annualized return.
MBB
- 1D
- -0.40%
- 1M
- -1.29%
- 6M
- -0.83%
- YTD
- -0.34%
- 1Y
- 3.08%
- 3Y*
- 4.35%
- 5Y*
- 0.08%
- 10Y*
- 1.15%
- ALL TIME*
- 2.61%
IEF
- 1D
- -0.28%
- 1M
- -1.24%
- 6M
- -1.22%
- YTD
- -1.44%
- 1Y
- 0.62%
- 3Y*
- 2.88%
- 5Y*
- -1.80%
- 10Y*
- 0.40%
- ALL TIME*
- 3.34%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $422.02M | $484.34M | $621.73M | |
| $206.11M | $186.95M | $205.58M |
MBB vs. IEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | -0.34% | 8.38% | 1.31% | 5.01% | -11.74% | -1.43% | 4.08% | 6.18% | 0.82% | 2.49% |
IEF iShares 7-10 Year Treasury Bond ETF | -1.44% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
Correlation
The correlation between MBB and IEF is 0.94, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.94 |
Correlation (3Y) Balances recent behavior with more history. | 0.95 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.93 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.87 |
Correlation (All Time) Calculated using the full available price history since Mar 16, 2007 | 0.80 |
The correlation between MBB and IEF shifts across timeframes, from 0.80 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
MBB vs. IEF — Risk / Return Rank
MBB
IEF
MBB vs. IEF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MBS Bond ETF (MBB) and iShares 7-10 Year Treasury Bond ETF (IEF). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| MBB | IEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.56 | ||
| Sortino ratioReturn per unit of downside risk | +0.78 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.07 | +0.10 |
| Calmar ratioReturn relative to maximum drawdown | 1.42 | 0.44 | +0.98 |
| Martin ratioReturn relative to average drawdown | 3.92 | 1.01 | +2.90 |
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Drawdowns
MBB vs. IEF - Drawdown Comparison
The maximum MBB drawdown since its inception was -17.64%, smaller than the maximum IEF drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for MBB and IEF.
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Drawdown Indicators
| MBB | IEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.64% | -23.93% | +6.29% |
Max Drawdown (1Y)Largest decline over 1 year | -2.94% | -4.07% | +1.13% |
Max Drawdown (3Y)Largest decline over 3 years | -6.40% | -6.89% | +0.49% |
Max Drawdown (5Y)Largest decline over 5 years | -17.19% | -21.38% | +4.19% |
Max Drawdown (10Y)Largest decline over 10 years | -17.64% | -23.93% | +6.29% |
Current DrawdownCurrent decline from peak | -2.42% | -12.05% | +9.63% |
Average DrawdownAverage peak-to-trough decline | -2.34% | -5.38% | +3.04% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.07% | 1.75% | -0.68% |
Volatility
MBB vs. IEF - Volatility Comparison
iShares MBS Bond ETF (MBB) has a higher volatility of 1.29% compared to iShares 7-10 Year Treasury Bond ETF (IEF) at 1.18%. This indicates that MBB's price experiences larger fluctuations and is considered to be riskier than IEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MBB | IEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.29% | 1.18% | +0.11% |
Volatility (6M)Calculated over the trailing 6-month period | 3.47% | 3.64% | -0.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.44% | 4.67% | -0.23% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.85% | 7.70% | -0.85% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.33% | 6.61% | -1.28% |
MBB vs. IEF - Expense Ratio Comparison
MBB has a 0.04% expense ratio, which is lower than IEF's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
MBB vs. IEF - Dividend Comparison
MBB's dividend yield for the trailing twelve months is around 4.34%, more than IEF's 3.95% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.62% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
MBB iShares MBS Bond ETF | 3.98% | 4.21% | 3.94% | 3.40% | 2.31% | 1.05% | 2.10% | 2.77% | 2.64% | 2.23% | 2.58% | 2.66% |
Frequently Asked Questions
With a correlation of 0.94, MBB and IEF move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
MBB has higher volatility (1.29%) compared to IEF (1.18%). In terms of maximum drawdown, MBB dropped -17.64% vs IEF's -23.93%.
On 10-year performance, MBB leads with 1.15% vs 0.40% for IEF. On fees, MBB is cheaper at 0.04% per year. On volatility, IEF has been the lower-risk option at 1.18%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, MBB has performed better with a 1.15% return vs 0.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MBB is cheaper with a 0.04% expense ratio, compared with 0.15% for IEF.
MBB has the higher dividend yield at 3.98%, compared with 3.62% for IEF.
MBB is categorized as Mortgage Backed Securities, while IEF is Government Bonds. MBB tracks Bloomberg U.S. MBS Index, while IEF tracks ICE U.S. Treasury 7-10 Year Bond Index. Their fees differ too: 0.04% for MBB and 0.15% for IEF.
MBB currently has the higher Sharpe Ratio (0.94 vs 0.38), 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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