MBB vs. USMV
Compare and contrast key facts about iShares MBS Bond ETF (MBB) and iShares Edge MSCI Min Vol USA ETF (USMV).
MBB and USMV 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. USMV is a passively managed fund by iShares that tracks the performance of the MSCI USA Minimum Volatility Index. It was launched on Oct 18, 2011. Both MBB and USMV 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 USMV.
Key characteristics
| MBB | USMV | |
|---|---|---|
| YTD Return | 2.21% | 21.29% |
| 1Y Return | 9.52% | 29.85% |
| 3Y Return (Ann) | -1.98% | 8.15% |
| 5Y Return (Ann) | -0.47% | 9.98% |
| 10Y Return (Ann) | 0.97% | 11.01% |
| Sharpe Ratio | 1.24 | 3.41 |
| Sortino Ratio | 1.82 | 4.82 |
| Omega Ratio | 1.22 | 1.65 |
| Calmar Ratio | 0.57 | 4.23 |
| Martin Ratio | 4.34 | 22.44 |
| Ulcer Index | 1.95% | 1.28% |
| Daily Std Dev | 6.85% | 8.45% |
| Max Drawdown | -17.65% | -33.10% |
| Current Drawdown | -6.87% | 0.00% |
Correlation
The correlation between MBB and USMV is 0.05, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
MBB vs. USMV - Performance Comparison
In the year-to-date period, MBB achieves a 2.21% return, which is significantly lower than USMV's 21.29% return. Over the past 10 years, MBB has underperformed USMV with an annualized return of 0.97%, while USMV has yielded a comparatively higher 11.01% 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. USMV - Expense Ratio Comparison
MBB has a 0.06% expense ratio, which is lower than USMV'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. USMV - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MBS Bond ETF (MBB) and iShares Edge MSCI Min Vol USA ETF (USMV). 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. USMV - Dividend Comparison
MBB's dividend yield for the trailing twelve months is around 3.83%, more than USMV's 1.60% 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% |
USMV iShares Edge MSCI Min Vol USA ETF | 1.60% | 1.82% | 1.62% | 1.26% | 1.81% | 1.88% | 2.12% | 1.77% | 2.22% | 2.02% | 1.88% | 2.18% |
Drawdowns
MBB vs. USMV - Drawdown Comparison
The maximum MBB drawdown since its inception was -17.65%, smaller than the maximum USMV drawdown of -33.10%. Use the drawdown chart below to compare losses from any high point for MBB and USMV. For additional features, visit the drawdowns tool.
Volatility
MBB vs. USMV - Volatility Comparison
The current volatility for iShares MBS Bond ETF (MBB) is 1.93%, while iShares Edge MSCI Min Vol USA ETF (USMV) has a volatility of 2.89%. This indicates that MBB experiences smaller price fluctuations and is considered to be less risky than USMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.