MBB vs. MBSD
Compare and contrast key facts about iShares MBS Bond ETF (MBB) and FlexShares Disciplined Duration MBS Index Fund (MBSD).
MBB and MBSD 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. MBSD is a passively managed fund by Northern Trust that tracks the performance of the ICE BofA Constrained Duration US Mortgage Backed Securities. It was launched on Sep 4, 2014. Both MBB and MBSD 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 MBSD.
Key characteristics
| MBB | MBSD | |
|---|---|---|
| YTD Return | 2.21% | 2.79% |
| 1Y Return | 9.52% | 7.55% |
| 3Y Return (Ann) | -1.98% | -1.30% |
| 5Y Return (Ann) | -0.47% | 0.30% |
| 10Y Return (Ann) | 0.97% | 1.00% |
| Sharpe Ratio | 1.24 | 1.13 |
| Sortino Ratio | 1.82 | 1.70 |
| Omega Ratio | 1.22 | 1.20 |
| Calmar Ratio | 0.57 | 0.61 |
| Martin Ratio | 4.34 | 5.23 |
| Ulcer Index | 1.95% | 1.31% |
| Daily Std Dev | 6.85% | 6.05% |
| Max Drawdown | -17.65% | -14.36% |
| Current Drawdown | -6.87% | -4.42% |
Correlation
The correlation between MBB and MBSD is 0.59, 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.
Performance
MBB vs. MBSD - Performance Comparison
In the year-to-date period, MBB achieves a 2.21% return, which is significantly lower than MBSD's 2.79% return. Both investments have delivered pretty close results over the past 10 years, with MBB having a 0.97% annualized return and MBSD not far ahead at 1.00%. 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. MBSD - Expense Ratio Comparison
MBB has a 0.06% expense ratio, which is lower than MBSD's 0.20% 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. MBSD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MBS Bond ETF (MBB) and FlexShares Disciplined Duration MBS Index Fund (MBSD). 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. MBSD - Dividend Comparison
MBB's dividend yield for the trailing twelve months is around 3.83%, more than MBSD's 3.68% 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% |
MBSD FlexShares Disciplined Duration MBS Index Fund | 3.68% | 3.39% | 3.04% | 2.41% | 2.78% | 3.42% | 3.22% | 3.30% | 2.78% | 2.49% | 0.83% | 0.00% |
Drawdowns
MBB vs. MBSD - Drawdown Comparison
The maximum MBB drawdown since its inception was -17.65%, which is greater than MBSD's maximum drawdown of -14.36%. Use the drawdown chart below to compare losses from any high point for MBB and MBSD. For additional features, visit the drawdowns tool.
Volatility
MBB vs. MBSD - Volatility Comparison
iShares MBS Bond ETF (MBB) has a higher volatility of 1.93% compared to FlexShares Disciplined Duration MBS Index Fund (MBSD) at 1.45%. This indicates that MBB's price experiences larger fluctuations and is considered to be riskier than MBSD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.