PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
MBB vs. TLT
Performance
Return for Risk
Drawdowns
Volatility
Dividends

MBB vs. TLT

Last updated Jun 4, 2026

MBB (iShares MBS Bond ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - MBB is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, MBB returned 1.30%/yr vs -1.66%/yr for TLT. A 0.72 correlation means they provide meaningful diversification when combined. MBB charges 0.06%/yr vs 0.15%/yr for TLT.

Performance

MBB vs. TLT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MBS Bond ETF (MBB) and iShares 20+ Year Treasury Bond ETF (TLT). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, MBB achieves a 0.58% return, which is significantly higher than TLT's -0.27% return. Over the past 10 years, MBB has outperformed TLT with an annualized return of 1.30%, while TLT has yielded a comparatively lower -1.66% annualized return.

MBB

1D
-0.23%
1M
0.31%
YTD
0.58%
6M
0.71%
1Y
6.76%
3Y*
4.36%
5Y*
0.34%
10Y*
1.30%

TLT

1D
-0.40%
1M
0.81%
YTD
-0.27%
6M
-2.02%
1Y
4.93%
3Y*
-1.80%
5Y*
-6.31%
10Y*
-1.66%
*Multi-year figures are annualized to reflect compound growth (CAGR)

MBB vs. TLT - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
MBB
iShares MBS Bond ETF		0.58%8.38%1.31%5.01%-11.74%-1.43%4.08%6.18%0.82%2.49%
TLT
iShares 20+ Year Treasury Bond ETF		-0.27%4.25%-8.05%2.77%-31.23%-4.60%18.15%14.12%-1.61%9.18%

Correlation

The correlation between MBB and TLT is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.87

Correlation (3Y)
Calculated over the trailing 3-year period

0.89

Correlation (5Y)
Calculated over the trailing 5-year period

0.84

Correlation (10Y)
Calculated over the trailing 10-year period

0.77

Correlation (All Time)
Calculated using the full available price history since Mar 19, 2007

0.72

The correlation between MBB and TLT shifts across timeframes, from 0.72 (all time) to 0.89 (3 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares MBS Bond ETF

iShares 20+ Year Treasury Bond ETF

Often compared with MBB:
MBB vs. IEFMBB vs. MBSDMBB vs. USMVMBB vs. AGGMBB vs. FLIAMBB vs. CMFMBB vs. NUBD
Often compared with TLT:
TLT vs. SPYTLT vs. IEFTLT vs. TMFTLT vs. BNDTLT vs. VGLTTLT vs. TLTWTLT vs. EDV

Return for Risk

MBB vs. TLT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
MBB
MBB Risk / Return Rank: 4444
Overall Rank
MBB Sharpe Ratio Rank: 4242
Sharpe Ratio Rank
MBB Sortino Ratio Rank: 4343
Sortino Ratio Rank
MBB Omega Ratio Rank: 4141
Omega Ratio Rank
MBB Calmar Ratio Rank: 4646
Calmar Ratio Rank
MBB Martin Ratio Rank: 4646
Martin Ratio Rank
TLT
TLT Risk / Return Rank: 1616
Overall Rank
TLT Sharpe Ratio Rank: 1616
Sharpe Ratio Rank
TLT Sortino Ratio Rank: 1515
Sortino Ratio Rank
TLT Omega Ratio Rank: 1515
Omega Ratio Rank
TLT Calmar Ratio Rank: 1717
Calmar Ratio Rank
TLT Martin Ratio Rank: 1616
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MBB vs. TLT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MBS Bond ETF (MBB) and iShares 20+ Year Treasury Bond ETF (TLT). 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.

MBBTLTDifference
Sharpe ratioReturn per unit of total volatility
1.51
0.51

+1.00

Sortino ratioReturn per unit of downside risk
2.22
0.80

+1.42

Omega ratioGain probability vs. loss probability

1.27

1.09

+0.18

Calmar ratioReturn relative to maximum drawdown

2.31

0.65

+1.65

Martin ratioReturn relative to average drawdown

7.64

1.63

+6.01

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MBB vs. TLT - Sharpe Ratio Comparison

The current MBB Sharpe Ratio is 1.51, which is higher than the TLT Sharpe Ratio of 0.51. The chart below compares the historical Sharpe Ratios of MBB and TLT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Sharpe Ratios by Period

MBBTLTDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.51

0.51

+1.00

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.05

-0.40

+0.45

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.25

-0.11

+0.36

Sharpe Ratio (All Time)

Calculated using the full available price history

0.58

0.26

+0.33

Drawdowns

MBB vs. TLT - Drawdown Comparison

The maximum MBB drawdown since its inception was -17.64%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for MBB and TLT.

Loading charts...

Drawdown Indicators

MBBTLTDifference

Max Drawdown

Largest peak-to-trough decline

-17.64%

-48.35%

+30.71%

Max Drawdown (1Y)

Largest decline over 1 year

-2.94%

-7.58%

+4.64%

Max Drawdown (3Y)

Largest decline over 3 years

-7.68%

-19.18%

+11.50%

Max Drawdown (5Y)

Largest decline over 5 years

-17.19%

-43.70%

+26.51%

Max Drawdown (10Y)

Largest decline over 10 years

-17.64%

-48.35%

+30.71%

Current Drawdown

Current decline from peak

-1.52%

-40.44%

+38.92%

Average Drawdown

Average peak-to-trough decline

-2.35%

-13.82%

+11.47%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.89%

3.04%

-2.15%

Volatility

MBB vs. TLT - Volatility Comparison

The current volatility for iShares MBS Bond ETF (MBB) is 1.59%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.76%. This indicates that MBB experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

MBBTLTDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.59%

2.76%

-1.17%

Volatility (6M)

Calculated over the trailing 6-month period

3.23%

6.50%

-3.27%

Volatility (1Y)

Calculated over the trailing 1-year period

4.51%

9.77%

-5.26%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.81%

15.87%

-9.06%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.31%

14.91%

-9.60%

MBB vs. TLT - Expense Ratio Comparison

MBB has a 0.06% expense ratio, which is lower than TLT'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. TLT - Dividend Comparison

MBB's dividend yield for the trailing twelve months is around 4.28%, less than TLT's 4.59% yield.

PositionTTM20252024202320222021202020192018201720162015
MBB
iShares MBS Bond ETF		4.28%4.21%3.94%3.40%2.31%1.05%2.10%2.77%2.64%2.23%2.58%2.66%
TLT
iShares 20+ Year Treasury Bond ETF		4.59%4.43%4.30%3.38%2.67%1.50%1.50%2.27%2.63%2.43%2.60%2.61%

Frequently Asked Questions

MBB and TLT have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

TLT has higher volatility (2.76%) compared to MBB (1.59%). In terms of maximum drawdown, MBB dropped -17.64% vs TLT's -48.35%.

On 10-year performance, MBB leads with 1.30% vs -1.66% for TLT. On fees, MBB is cheaper at 0.06% per year. On volatility, MBB has been the lower-risk option at 1.59%. 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 1.30% return vs -1.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

MBB is cheaper with a 0.06% expense ratio, compared with 0.15% for TLT.

TLT has the higher dividend yield at 4.59%, compared with 4.28% for MBB.

MBB is categorized as Mortgage Backed Securities, while TLT is Government Bonds. MBB tracks Barclays Capital U.S. MBS Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. Their fees differ too: 0.06% for MBB and 0.15% for TLT.

MBB currently has the higher Sharpe Ratio (1.51 vs 0.51), 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.

Portfolio Optimizer

Find the right allocation for MBB and TLT

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer