MBB vs. IEI
Compare and contrast key facts about iShares MBS Bond ETF (MBB) and iShares 3-7 Year Treasury Bond ETF (IEI).
MBB and IEI are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. MBB is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. MBS Index. It was launched on Mar 16, 2007. IEI is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 3-7 Year Treasury Bond Index. It was launched on Jan 11, 2007. Both MBB and IEI are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: MBB or IEI.
Key characteristics
| MBB | IEI | |
|---|---|---|
| YTD Return | 2.21% | 1.96% |
| 1Y Return | 9.52% | 6.19% |
| 3Y Return (Ann) | -1.98% | -1.45% |
| 5Y Return (Ann) | -0.47% | 0.18% |
| 10Y Return (Ann) | 0.97% | 1.19% |
| Sharpe Ratio | 1.24 | 1.24 |
| Sortino Ratio | 1.82 | 1.85 |
| Omega Ratio | 1.22 | 1.23 |
| Calmar Ratio | 0.57 | 0.47 |
| Martin Ratio | 4.34 | 4.12 |
| Ulcer Index | 1.95% | 1.36% |
| Daily Std Dev | 6.85% | 4.53% |
| Max Drawdown | -17.65% | -14.60% |
| Current Drawdown | -6.87% | -6.56% |
Correlation
The correlation between MBB and IEI is 0.79, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
MBB vs. IEI - Performance Comparison
In the year-to-date period, MBB achieves a 2.21% return, which is significantly higher than IEI's 1.96% return. Over the past 10 years, MBB has underperformed IEI with an annualized return of 0.97%, while IEI has yielded a comparatively higher 1.19% annualized 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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MBB vs. IEI - Expense Ratio Comparison
MBB has a 0.06% expense ratio, which is lower than IEI'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%.
Risk-Adjusted Performance
MBB vs. IEI - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MBS Bond ETF (MBB) and iShares 3-7 Year Treasury Bond ETF (IEI). 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
MBB vs. IEI - Dividend Comparison
MBB's dividend yield for the trailing twelve months is around 3.83%, more than IEI's 3.09% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 3.83% | 3.40% | 2.31% | 1.05% | 2.10% | 2.77% | 2.63% | 2.23% | 2.58% | 2.66% | 1.72% | 1.27% |
IEI iShares 3-7 Year Treasury Bond ETF | 3.09% | 2.36% | 1.37% | 0.73% | 1.12% | 2.01% | 1.95% | 1.51% | 1.33% | 1.39% | 1.23% | 0.77% |
Drawdowns
MBB vs. IEI - Drawdown Comparison
The maximum MBB drawdown since its inception was -17.65%, which is greater than IEI's maximum drawdown of -14.60%. Use the drawdown chart below to compare losses from any high point for MBB and IEI. For additional features, visit the drawdowns tool.
Volatility
MBB vs. IEI - Volatility Comparison
iShares MBS Bond ETF (MBB) has a higher volatility of 1.93% compared to iShares 3-7 Year Treasury Bond ETF (IEI) at 1.08%. This indicates that MBB's price experiences larger fluctuations and is considered to be riskier than IEI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.