MEAR vs. BAB
Compare and contrast key facts about iShares Short Maturity Municipal Bond ETF (MEAR) and Invesco Taxable Municipal Bond ETF (BAB).
MEAR and BAB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. MEAR is an actively managed fund by iShares. It was launched on Mar 3, 2015. BAB is a passively managed fund by Invesco that tracks the performance of the BofA Merrill Lynch Build America Bond Index. It was launched on Nov 17, 2009.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: MEAR or BAB.
Key characteristics
| MEAR | BAB | |
|---|---|---|
| YTD Return | 1.30% | -0.39% |
| 1Y Return | 4.04% | 2.97% |
| 3Y Return (Ann) | 1.75% | -3.41% |
| 5Y Return (Ann) | 1.52% | 0.31% |
| Sharpe Ratio | 3.79 | 0.30 |
| Daily Std Dev | 1.07% | 9.12% |
| Max Drawdown | -2.68% | -27.80% |
| Current Drawdown | -0.06% | -14.20% |
Correlation
The correlation between MEAR and BAB is 0.11, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
MEAR vs. BAB - Performance Comparison
In the year-to-date period, MEAR achieves a 1.30% return, which is significantly higher than BAB's -0.39% return. 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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MEAR vs. BAB - Expense Ratio Comparison
MEAR has a 0.25% expense ratio, which is lower than BAB's 0.28% expense ratio.
Risk-Adjusted Performance
MEAR vs. BAB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Short Maturity Municipal Bond ETF (MEAR) and Invesco Taxable Municipal Bond ETF (BAB). 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
MEAR vs. BAB - Dividend Comparison
MEAR's dividend yield for the trailing twelve months is around 3.43%, less than BAB's 3.80% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MEAR iShares Short Maturity Municipal Bond ETF | 3.43% | 3.30% | 0.88% | 0.30% | 0.90% | 1.57% | 1.36% | 1.01% | 0.81% | 0.53% | 0.00% | 0.00% |
BAB Invesco Taxable Municipal Bond ETF | 3.80% | 3.65% | 3.40% | 2.63% | 2.96% | 3.77% | 4.20% | 3.96% | 4.26% | 4.71% | 4.59% | 5.18% |
Drawdowns
MEAR vs. BAB - Drawdown Comparison
The maximum MEAR drawdown since its inception was -2.68%, smaller than the maximum BAB drawdown of -27.80%. Use the drawdown chart below to compare losses from any high point for MEAR and BAB. For additional features, visit the drawdowns tool.
Volatility
MEAR vs. BAB - Volatility Comparison
The current volatility for iShares Short Maturity Municipal Bond ETF (MEAR) is 0.26%, while Invesco Taxable Municipal Bond ETF (BAB) has a volatility of 1.64%. This indicates that MEAR experiences smaller price fluctuations and is considered to be less risky than BAB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.