MBS vs. BOND

Last updated Jun 21, 2026

MBS (Angel Oak Mortgage-Backed Securities ETF) and BOND (PIMCO Active Bond ETF) are both Intermediate Core-Plus Bond funds. Both are actively managed. Over the past year, MBS returned 6.13% vs 5.88% for BOND. A 0.67 correlation means they provide meaningful diversification when combined. MBS charges 0.49%/yr vs 0.54%/yr for BOND.

Performance

MBS vs. BOND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Angel Oak Mortgage-Backed Securities ETF (MBS) and PIMCO Active Bond ETF (BOND). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MBS achieves a 0.86% return, which is significantly higher than BOND's 0.65% return.

MBS

• 1D: -0.12%
• 1M: 0.65%
• YTD: 0.86%
• 6M: 0.91%
• 1Y: 6.13%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BOND

• 1D: -0.33%
• 1M: 0.77%
• YTD: 0.65%
• 6M: 0.84%
• 1Y: 5.88%
• 3Y*: 5.07%
• 5Y*: 0.46%
• 10Y*: 2.15%

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

MBS vs. BOND - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MBS Angel Oak Mortgage-Backed Securities ETF	0.86%	8.13%	5.84%
BOND PIMCO Active Bond ETF	0.65%	8.39%	4.21%

Correlation

The correlation between MBS and BOND is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.65
Correlation (All Time) Calculated using the full available price history since Feb 20, 2024	0.67

The correlation between MBS and BOND has been stable across timeframes, ranging from 0.65 to 0.67 - a consistent structural relationship.

Return for Risk

MBS vs. BOND — Risk / Return Rank

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

MBS

MBS Risk / Return Rank: 71
MBS Sharpe Ratio Rank: 77
MBS Sortino Ratio Rank: 83
MBS Omega Ratio Rank: 78
MBS Calmar Ratio Rank: 62
MBS Martin Ratio Rank: 53

BOND

BOND Risk / Return Rank: 42
BOND Sharpe Ratio Rank: 44
BOND Sortino Ratio Rank: 44
BOND Omega Ratio Rank: 42
BOND Calmar Ratio Rank: 40
BOND Martin Ratio Rank: 39

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.

MBS vs. BOND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Angel Oak Mortgage-Backed Securities ETF (MBS) and PIMCO Active Bond ETF (BOND). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MBS	BOND	Difference
Sharpe ratio: Return per unit of total volatility	2.32	1.49	+0.84
Sortino ratio: Return per unit of downside risk	3.51	2.17	+1.34
Omega ratio: Gain probability vs. loss probability	1.44	1.26	+0.17
Calmar ratio: Return relative to maximum drawdown	2.94	1.96	+0.98
Martin ratio: Return relative to average drawdown	8.62	5.93	+2.69

MBS vs. BOND - Sharpe Ratio Comparison

The current MBS Sharpe Ratio is 2.32, which is higher than the BOND Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of MBS and BOND, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MBS vs. BOND - Drawdown Comparison

The maximum MBS drawdown since its inception was -4.09%, smaller than the maximum BOND drawdown of -19.71%. Use the drawdown chart below to compare losses from any high point for MBS and BOND.

Drawdown Indicators

	MBS	BOND	Difference
Max Drawdown Largest peak-to-trough decline	-4.09%	-19.71%	+15.62%
Max Drawdown (1Y) Largest decline over 1 year	-2.20%	-3.01%	+0.81%
Max Drawdown (3Y) Largest decline over 3 years	—	-6.12%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-19.71%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-19.71%	—
Current Drawdown Current decline from peak	-1.23%	-1.40%	+0.17%
Average Drawdown Average peak-to-trough decline	-1.02%	-3.50%	+2.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.75%	0.99%	-0.24%

Volatility

MBS vs. BOND - Volatility Comparison

The current volatility for Angel Oak Mortgage-Backed Securities ETF (MBS) is 0.76%, while PIMCO Active Bond ETF (BOND) has a volatility of 1.35%. This indicates that MBS experiences smaller price fluctuations and is considered to be less risky than BOND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MBS	BOND	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.76%	1.35%	-0.59%
Volatility (6M) Calculated over the trailing 6-month period	2.04%	3.05%	-1.01%
Volatility (1Y) Calculated over the trailing 1-year period	2.78%	3.99%	-1.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.97%	5.78%	-1.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.97%	5.10%	-1.13%

MBS vs. BOND - Expense Ratio Comparison

MBS has a 0.49% expense ratio, which is lower than BOND's 0.54% expense ratio.

Dividends

MBS vs. BOND - Dividend Comparison

MBS's dividend yield for the trailing twelve months is around 5.60%, more than BOND's 5.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BOND PIMCO Active Bond ETF	5.18%	5.11%	5.02%	4.06%	3.44%	2.58%	2.66%	3.38%	3.18%	2.87%	2.85%	4.14%
MBS Angel Oak Mortgage-Backed Securities ETF	5.60%	5.28%	4.52%	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 MBS and BOND in my portfolio?

MBS and BOND have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MBS or BOND?

BOND has higher volatility (1.35%) compared to MBS (0.76%). In terms of maximum drawdown, MBS dropped -4.09% vs BOND's -19.71%.

Which ETF is better, MBS or BOND?

On 1-year performance, MBS leads with 6.13% vs 5.88% for BOND. On fees, MBS is cheaper at 0.49% per year. On volatility, MBS has been the lower-risk option at 0.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MBS or BOND?

Over the 1-year period, MBS has performed better with a 6.13% return vs 5.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MBS or BOND?

MBS is cheaper with a 0.49% expense ratio, compared with 0.54% for BOND.

Which ETF pays a higher dividend yield, MBS or BOND?

MBS has the higher dividend yield at 5.60%, compared with 5.18% for BOND.

What is the main difference between MBS and BOND?

They also come from different issuers: Angel Oak and PIMCO. Their fees differ too: 0.49% for MBS and 0.54% for BOND.

Which has better risk-adjusted returns?

MBS currently has the higher Sharpe Ratio (2.32 vs 1.49), 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.