MBSD vs. CMBS
MBSD (FlexShares Disciplined Duration MBS Index Fund) and CMBS (iShares CMBS ETF) are both Mortgage Backed Securities funds - MBSD tracks the ICE BofA Constrained Duration US Mortgage Backed Securities while CMBS tracks the Barclays Capital U.S. CMBS (ERISA Only) Index. Both are passively managed. Over the past 10 years, MBSD returned 1.37%/yr vs 2.06%/yr for CMBS. At a 0.40 correlation, their price movements are largely independent. MBSD charges 0.20%/yr vs 0.25%/yr for CMBS.
Performance
MBSD vs. CMBS - Performance Comparison
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Returns By Period
In the year-to-date period, MBSD achieves a 0.42% return, which is significantly higher than CMBS's 0.14% return. Over the past 10 years, MBSD has underperformed CMBS with an annualized return of 1.37%, while CMBS has yielded a comparatively higher 2.06% annualized return.
MBSD
- 1D
- -0.22%
- 1M
- 0.16%
- YTD
- 0.42%
- 6M
- 0.52%
- 1Y
- 5.26%
- 3Y*
- 4.31%
- 5Y*
- 0.62%
- 10Y*
- 1.37%
CMBS
- 1D
- -0.04%
- 1M
- -0.05%
- YTD
- 0.14%
- 6M
- 0.28%
- 1Y
- 4.26%
- 3Y*
- 5.15%
- 5Y*
- 0.79%
- 10Y*
- 2.06%
MBSD vs. CMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MBSD FlexShares Disciplined Duration MBS Index Fund | 0.42% | 7.12% | 2.30% | 4.46% | -9.49% | -1.40% | 5.43% | 6.05% | 0.32% | 0.86% |
CMBS iShares CMBS ETF | 0.14% | 7.67% | 4.27% | 5.06% | -11.21% | -1.82% | 7.86% | 7.94% | 0.77% | 2.95% |
Correlation
The correlation between MBSD and CMBS is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.31 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.49 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.57 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.42 |
Correlation (All Time) Calculated using the full available price history since Sep 5, 2014 | 0.40 |
The correlation between MBSD and CMBS shifts across timeframes, from 0.31 (1 year) to 0.57 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
MBSD vs. CMBS — Risk / Return Rank
MBSD
CMBS
MBSD vs. CMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares Disciplined Duration MBS Index Fund (MBSD) and iShares CMBS ETF (CMBS). 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.
| MBSD | CMBS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.34 | ||
| Sortino ratioReturn per unit of downside risk | +0.46 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.20 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | 2.43 | 1.76 | +0.67 |
| Martin ratioReturn relative to average drawdown | 7.71 | 4.90 | +2.81 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| MBSD | CMBS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.50 | 1.16 | +0.34 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.12 | 0.15 | -0.03 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.32 | 0.36 | -0.03 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.38 | 0.43 | -0.06 |
Drawdowns
MBSD vs. CMBS - Drawdown Comparison
The maximum MBSD drawdown since its inception was -14.36%, smaller than the maximum CMBS drawdown of -15.87%. Use the drawdown chart below to compare losses from any high point for MBSD and CMBS.
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Drawdown Indicators
| MBSD | CMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.36% | -15.87% | +1.51% |
Max Drawdown (1Y)Largest decline over 1 year | -2.17% | -2.44% | +0.27% |
Max Drawdown (3Y)Largest decline over 3 years | -4.68% | -3.29% | -1.39% |
Max Drawdown (5Y)Largest decline over 5 years | -14.10% | -15.87% | +1.77% |
Max Drawdown (10Y)Largest decline over 10 years | -14.36% | -15.87% | +1.51% |
Current DrawdownCurrent decline from peak | -1.19% | -1.77% | +0.58% |
Average DrawdownAverage peak-to-trough decline | -2.81% | -2.95% | +0.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.68% | 0.87% | -0.19% |
Volatility
MBSD vs. CMBS - Volatility Comparison
FlexShares Disciplined Duration MBS Index Fund (MBSD) and iShares CMBS ETF (CMBS) have volatilities of 1.15% and 1.11%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MBSD | CMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.15% | 1.11% | +0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 2.47% | 2.82% | -0.35% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.53% | 3.71% | -0.18% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.15% | 5.31% | -0.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.26% | 5.77% | -1.51% |
MBSD vs. CMBS - Expense Ratio Comparison
MBSD has a 0.20% expense ratio, which is lower than CMBS's 0.25% 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
MBSD vs. CMBS - Dividend Comparison
MBSD's dividend yield for the trailing twelve months is around 4.19%, more than CMBS's 3.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CMBS iShares CMBS ETF | 3.58% | 3.45% | 3.31% | 2.97% | 2.65% | 2.46% | 2.83% | 2.74% | 2.70% | 2.50% | 2.29% | 2.31% |
MBSD FlexShares Disciplined Duration MBS Index Fund | 4.19% | 4.23% | 3.91% | 3.39% | 3.03% | 2.41% | 2.78% | 3.42% | 3.22% | 3.30% | 3.02% | 3.46% |
Frequently Asked Questions
MBSD and CMBS have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MBSD has higher volatility (1.15%) compared to CMBS (1.11%). In terms of maximum drawdown, MBSD dropped -14.36% vs CMBS's -15.87%.
On 10-year performance, CMBS leads with 2.06% vs 1.37% for MBSD. On fees, MBSD is cheaper at 0.20% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, CMBS has performed better with a 2.06% return vs 1.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MBSD is cheaper with a 0.20% expense ratio, compared with 0.25% for CMBS.
MBSD has the higher dividend yield at 4.19%, compared with 3.58% for CMBS.
MBSD tracks ICE BofA Constrained Duration US Mortgage Backed Securities, while CMBS tracks Barclays Capital U.S. CMBS (ERISA Only) Index. They also come from different issuers: Northern Trust and iShares. Their fees differ too: 0.20% for MBSD and 0.25% for CMBS.
MBSD currently has the higher Sharpe Ratio (1.50 vs 1.16), 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.
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