MBSD vs. MBB
Compare and contrast key facts about FlexShares Disciplined Duration MBS Index Fund (MBSD) and iShares MBS Bond ETF (MBB).
MBSD and MBB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. MBSD is a passively managed fund by Northern Trust that tracks the performance of the ICE BofA Constrained Duration US Mortgage Backed Securities. It was launched on Sep 4, 2014. 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. Both MBSD and MBB 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: MBSD or MBB.
Key characteristics
| MBSD | MBB | |
|---|---|---|
| YTD Return | 2.64% | 2.04% |
| 1Y Return | 7.23% | 9.02% |
| 3Y Return (Ann) | -1.21% | -1.88% |
| 5Y Return (Ann) | 0.24% | -0.52% |
| 10Y Return (Ann) | 0.97% | 0.94% |
| Sharpe Ratio | 1.23 | 1.38 |
| Sortino Ratio | 1.85 | 2.04 |
| Omega Ratio | 1.22 | 1.24 |
| Calmar Ratio | 0.66 | 0.63 |
| Martin Ratio | 5.59 | 4.75 |
| Ulcer Index | 1.32% | 1.96% |
| Daily Std Dev | 6.02% | 6.78% |
| Max Drawdown | -14.36% | -17.65% |
| Current Drawdown | -4.56% | -7.03% |
Correlation
The correlation between MBSD and MBB is 0.59, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
MBSD vs. MBB - Performance Comparison
In the year-to-date period, MBSD achieves a 2.64% return, which is significantly higher than MBB's 2.04% return. Both investments have delivered pretty close results over the past 10 years, with MBSD having a 0.97% annualized return and MBB not far behind at 0.94%. 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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MBSD vs. MBB - Expense Ratio Comparison
MBSD has a 0.20% expense ratio, which is higher than MBB's 0.06% 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%.
Risk-Adjusted Performance
MBSD vs. MBB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares Disciplined Duration MBS Index Fund (MBSD) and iShares MBS Bond ETF (MBB). 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
MBSD vs. MBB - Dividend Comparison
MBSD's dividend yield for the trailing twelve months is around 3.69%, less than MBB's 3.83% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MBSD FlexShares Disciplined Duration MBS Index Fund | 3.69% | 3.39% | 3.04% | 2.41% | 2.78% | 3.42% | 3.22% | 3.30% | 2.78% | 2.49% | 0.83% | 0.00% |
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% |
Drawdowns
MBSD vs. MBB - Drawdown Comparison
The maximum MBSD drawdown since its inception was -14.36%, smaller than the maximum MBB drawdown of -17.65%. Use the drawdown chart below to compare losses from any high point for MBSD and MBB. For additional features, visit the drawdowns tool.
Volatility
MBSD vs. MBB - Volatility Comparison
The current volatility for FlexShares Disciplined Duration MBS Index Fund (MBSD) is 1.45%, while iShares MBS Bond ETF (MBB) has a volatility of 1.93%. This indicates that MBSD experiences smaller price fluctuations and is considered to be less risky than MBB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.