MBBA vs. LMBS

Last updated Jun 4, 2026

MBBA (iShares Mortgage-Backed Securities Active ETF) and LMBS (First Trust Low Duration Mortgage Opportunities ETF) are both Mortgage Backed Securities funds. Both are actively managed. Their correlation of 0.85 suggests significant overlap in exposure. MBBA charges 0.25%/yr vs 0.68%/yr for LMBS.

Performance

MBBA vs. LMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Mortgage-Backed Securities Active ETF (MBBA) and First Trust Low Duration Mortgage Opportunities ETF (LMBS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

MBBA

• 1D: -0.16%
• 1M: 0.53%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

LMBS

• 1D: -0.10%
• 1M: 0.11%
• YTD: 1.24%
• 6M: 1.47%
• 1Y: 6.09%
• 3Y*: 5.73%
• 5Y*: 3.03%
• 10Y*: 2.67%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MBBA vs. LMBS - Yearly Performance Comparison

	2026 (YTD)
MBBA iShares Mortgage-Backed Securities Active ETF	0.64%
LMBS First Trust Low Duration Mortgage Opportunities ETF	0.69%

Correlation

The correlation between MBBA and LMBS is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jan 27, 2026	0.85

Return for Risk

MBBA vs. LMBS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LMBS

LMBS Risk / Return Rank: 88
LMBS Sharpe Ratio Rank: 90
LMBS Sortino Ratio Rank: 93
LMBS Omega Ratio Rank: 92
LMBS Calmar Ratio Rank: 81
LMBS Martin Ratio Rank: 86

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.

MBBA vs. LMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Mortgage-Backed Securities Active ETF (MBBA) and First Trust Low Duration Mortgage Opportunities ETF (LMBS). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	MBBA	LMBS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	3.10	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	1.19	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.14	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	1.13	-0.73

Drawdowns

MBBA vs. LMBS - Drawdown Comparison

The maximum MBBA drawdown since its inception was -2.83%, smaller than the maximum LMBS drawdown of -6.49%. Use the drawdown chart below to compare losses from any high point for MBBA and LMBS.

Drawdown Indicators

	MBBA	LMBS	Difference
Max Drawdown Largest peak-to-trough decline	-2.83%	-6.49%	+3.66%
Max Drawdown (1Y) Largest decline over 1 year	—	-1.43%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-1.72%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-6.12%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-6.49%	—
Current Drawdown Current decline from peak	-1.17%	-0.34%	-0.83%
Average Drawdown Average peak-to-trough decline	-1.12%	-0.80%	-0.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.33%	—

Volatility

Volatility by Period

	MBBA	LMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.68%	—
Volatility (6M) Calculated over the trailing 6-month period	—	1.45%	—
Volatility (1Y) Calculated over the trailing 1-year period	4.66%	1.97%	+2.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.66%	2.56%	+2.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.66%	2.36%	+2.30%

MBBA vs. LMBS - Expense Ratio Comparison

MBBA has a 0.25% expense ratio, which is lower than LMBS's 0.68% expense ratio.

Dividends

MBBA vs. LMBS - Dividend Comparison

MBBA's dividend yield for the trailing twelve months is around 1.84%, less than LMBS's 4.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LMBS First Trust Low Duration Mortgage Opportunities ETF	4.10%	4.08%	4.28%	3.96%	2.22%	2.04%	2.27%	2.55%	2.76%	2.73%	2.84%	3.03%
MBBA iShares Mortgage-Backed Securities Active ETF	1.84%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MBBA and LMBS in my portfolio?

MBBA and LMBS have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, MBBA or LMBS?

On fees, MBBA is cheaper at 0.25% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, MBBA or LMBS?

MBBA is cheaper with a 0.25% expense ratio, compared with 0.68% for LMBS.

Which ETF pays a higher dividend yield, MBBA or LMBS?

LMBS has the higher dividend yield at 4.10%, compared with 1.84% for MBBA.

What is the main difference between MBBA and LMBS?

They also come from different issuers: iShares and First Trust. Their fees differ too: 0.25% for MBBA and 0.68% for LMBS.