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MBSD vs. GNMA
Performance
Return for Risk
Drawdowns
Volatility
Dividends

MBSD vs. GNMA

Last updated Jun 4, 2026

MBSD (FlexShares Disciplined Duration MBS Index Fund) and GNMA (iShares GNMA Bond ETF) are both Mortgage Backed Securities funds - MBSD tracks the ICE BofA Constrained Duration US Mortgage Backed Securities while GNMA tracks the Barclays Capital GNMA Index. Both are passively managed. Over the past 10 years, MBSD returned 1.37%/yr vs 1.23%/yr for GNMA. A 0.55 correlation means they provide meaningful diversification when combined. MBSD charges 0.20%/yr vs 0.15%/yr for GNMA.

Performance

MBSD vs. GNMA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Disciplined Duration MBS Index Fund (MBSD) and iShares GNMA Bond ETF (GNMA). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, MBSD achieves a 0.42% return, which is significantly lower than GNMA's 0.56% return. Over the past 10 years, MBSD has outperformed GNMA with an annualized return of 1.37%, while GNMA has yielded a comparatively lower 1.23% 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%

GNMA

1D
-0.19%
1M
-0.07%
YTD
0.56%
6M
0.81%
1Y
6.56%
3Y*
4.20%
5Y*
0.53%
10Y*
1.23%
*Multi-year figures are annualized to reflect compound growth (CAGR)

MBSD vs. GNMA - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
GNMA
iShares GNMA Bond ETF		0.56%8.25%1.07%5.34%-10.83%-1.86%3.51%5.85%0.85%1.74%

Correlation

The correlation between MBSD and GNMA is 0.75, 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

0.75

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

0.83

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

0.82

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

0.61

Correlation (All Time)
Calculated using the full available price history since Sep 5, 2014

0.55

Over the past year, MBSD and GNMA have become more correlated (0.75) than their long-term average of 0.55, meaning their price movements have been converging.

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FlexShares Disciplined Duration MBS Index Fund

iShares GNMA Bond ETF

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Often compared with GNMA:
GNMA vs. TFIGNMA vs. VMBSGNMA vs. FLIAGNMA vs. BAGIXGNMA vs. SPMBGNMA vs. VOOGNMA vs. GOVT

Return for Risk

MBSD vs. GNMA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
MBSD
MBSD Risk / Return Rank: 4545
Overall Rank
MBSD Sharpe Ratio Rank: 4242
Sharpe Ratio Rank
MBSD Sortino Ratio Rank: 4444
Sortino Ratio Rank
MBSD Omega Ratio Rank: 4242
Omega Ratio Rank
MBSD Calmar Ratio Rank: 4949
Calmar Ratio Rank
MBSD Martin Ratio Rank: 4747
Martin Ratio Rank
GNMA
GNMA Risk / Return Rank: 4646
Overall Rank
GNMA Sharpe Ratio Rank: 4444
Sharpe Ratio Rank
GNMA Sortino Ratio Rank: 4747
Sortino Ratio Rank
GNMA Omega Ratio Rank: 4242
Omega Ratio Rank
GNMA Calmar Ratio Rank: 5151
Calmar Ratio Rank
GNMA Martin Ratio Rank: 4848
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.

MBSD vs. GNMA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Disciplined Duration MBS Index Fund (MBSD) and iShares GNMA Bond ETF (GNMA). 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.

MBSDGNMADifference
Sharpe ratioReturn per unit of total volatility
1.50
1.53

-0.04

Sortino ratioReturn per unit of downside risk
2.22
2.35

-0.13

Omega ratioGain probability vs. loss probability

1.27

1.27

0.00

Calmar ratioReturn relative to maximum drawdown

2.43

2.52

-0.09

Martin ratioReturn relative to average drawdown

7.71

8.05

-0.34

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

MBSD vs. GNMA - Sharpe Ratio Comparison

The current MBSD Sharpe Ratio is 1.50, which is comparable to the GNMA Sharpe Ratio of 1.53. The chart below compares the historical Sharpe Ratios of MBSD and GNMA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

MBSDGNMADifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.50

1.53

-0.04

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.12

0.08

+0.04

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.32

0.24

+0.08

Sharpe Ratio (All Time)

Calculated using the full available price history

0.38

0.25

+0.13

Drawdowns

MBSD vs. GNMA - Drawdown Comparison

The maximum MBSD drawdown since its inception was -14.36%, smaller than the maximum GNMA drawdown of -17.09%. Use the drawdown chart below to compare losses from any high point for MBSD and GNMA.

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Drawdown Indicators

MBSDGNMADifference

Max Drawdown

Largest peak-to-trough decline

-14.36%

-17.09%

+2.73%

Max Drawdown (1Y)

Largest decline over 1 year

-2.17%

-2.61%

+0.44%

Max Drawdown (3Y)

Largest decline over 3 years

-4.68%

-7.13%

+2.45%

Max Drawdown (5Y)

Largest decline over 5 years

-14.10%

-15.83%

+1.73%

Max Drawdown (10Y)

Largest decline over 10 years

-14.36%

-17.09%

+2.73%

Current Drawdown

Current decline from peak

-1.19%

-1.41%

+0.22%

Average Drawdown

Average peak-to-trough decline

-2.81%

-3.66%

+0.85%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.68%

0.82%

-0.14%

Volatility

MBSD vs. GNMA - Volatility Comparison

The current volatility for FlexShares Disciplined Duration MBS Index Fund (MBSD) is 1.15%, while iShares GNMA Bond ETF (GNMA) has a volatility of 1.54%. This indicates that MBSD experiences smaller price fluctuations and is considered to be less risky than GNMA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

MBSDGNMADifference

Volatility (1M)

Calculated over the trailing 1-month period

1.15%

1.54%

-0.39%

Volatility (6M)

Calculated over the trailing 6-month period

2.47%

3.14%

-0.67%

Volatility (1Y)

Calculated over the trailing 1-year period

3.53%

4.30%

-0.77%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

5.15%

6.61%

-1.46%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

4.26%

5.13%

-0.87%

MBSD vs. GNMA - Expense Ratio Comparison

MBSD has a 0.20% expense ratio, which is higher than GNMA's 0.15% expense ratio. However, 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. GNMA - Dividend Comparison

MBSD's dividend yield for the trailing twelve months is around 4.19%, less than GNMA's 4.24% yield.

PositionTTM20252024202320222021202020192018201720162015
GNMA
iShares GNMA Bond ETF		4.24%4.19%4.15%3.43%2.01%0.64%1.89%2.61%2.41%2.15%1.89%1.50%
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 GNMA have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

GNMA has higher volatility (1.54%) compared to MBSD (1.15%). In terms of maximum drawdown, MBSD dropped -14.36% vs GNMA's -17.09%.

On 10-year performance, MBSD leads with 1.37% vs 1.23% for GNMA. On fees, GNMA is cheaper at 0.15% per year. On volatility, MBSD has been the lower-risk option at 1.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, MBSD has performed better with a 1.37% return vs 1.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

GNMA is cheaper with a 0.15% expense ratio, compared with 0.20% for MBSD.

GNMA has the higher dividend yield at 4.24%, compared with 4.19% for MBSD.

MBSD tracks ICE BofA Constrained Duration US Mortgage Backed Securities, while GNMA tracks Barclays Capital GNMA Index. They also come from different issuers: Northern Trust and iShares. Their fees differ too: 0.20% for MBSD and 0.15% for GNMA.

GNMA currently has the higher Sharpe Ratio (1.53 vs 1.50), 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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