MBB vs. SPY
Compare and contrast key facts about iShares MBS Bond ETF (MBB) and SPDR S&P 500 ETF (SPY).
MBB and SPY 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. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both MBB and SPY 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 SPY.
Key characteristics
| MBB | SPY | |
|---|---|---|
| YTD Return | 2.21% | 27.04% |
| 1Y Return | 9.52% | 39.75% |
| 3Y Return (Ann) | -1.98% | 10.21% |
| 5Y Return (Ann) | -0.47% | 15.93% |
| 10Y Return (Ann) | 0.97% | 13.36% |
| Sharpe Ratio | 1.24 | 3.15 |
| Sortino Ratio | 1.82 | 4.19 |
| Omega Ratio | 1.22 | 1.59 |
| Calmar Ratio | 0.57 | 4.60 |
| Martin Ratio | 4.34 | 20.85 |
| Ulcer Index | 1.95% | 1.85% |
| Daily Std Dev | 6.85% | 12.29% |
| Max Drawdown | -17.65% | -55.19% |
| Current Drawdown | -6.87% | 0.00% |
Correlation
The correlation between MBB and SPY is -0.11. 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
MBB vs. SPY - Performance Comparison
In the year-to-date period, MBB achieves a 2.21% return, which is significantly lower than SPY's 27.04% return. Over the past 10 years, MBB has underperformed SPY with an annualized return of 0.97%, while SPY has yielded a comparatively higher 13.36% 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. SPY - Expense Ratio Comparison
MBB has a 0.06% expense ratio, which is lower than SPY's 0.09% 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. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MBS Bond ETF (MBB) and SPDR S&P 500 ETF (SPY). 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. SPY - Dividend Comparison
MBB's dividend yield for the trailing twelve months is around 3.83%, more than SPY's 1.17% 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% |
SPY SPDR S&P 500 ETF | 1.17% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
MBB vs. SPY - Drawdown Comparison
The maximum MBB drawdown since its inception was -17.65%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for MBB and SPY. For additional features, visit the drawdowns tool.
Volatility
MBB vs. SPY - Volatility Comparison
The current volatility for iShares MBS Bond ETF (MBB) is 1.93%, while SPDR S&P 500 ETF (SPY) has a volatility of 3.95%. This indicates that MBB experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.