MSTI vs. ISTB

Last updated Jun 24, 2026

MSTI (Madison Short-Term Strategic Income ETF) and ISTB (iShares Core 1-5 Year USD Bond ETF) are both Short-Term Bond funds. MSTI is actively managed, while ISTB is passively managed. Over the past year, MSTI returned 3.63% vs 3.65% for ISTB. A 0.78 correlation means they provide meaningful diversification when combined. MSTI charges 0.40%/yr vs 0.06%/yr for ISTB.

Performance

MSTI vs. ISTB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Madison Short-Term Strategic Income ETF (MSTI) and iShares Core 1-5 Year USD Bond ETF (ISTB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSTI achieves a 0.73% return, which is significantly higher than ISTB's 0.53% return.

MSTI

• 1D: 0.10%
• 1M: 0.34%
• YTD: 0.73%
• 6M: 0.94%
• 1Y: 3.63%
• 3Y*: —
• 5Y*: —
• 10Y*: —

ISTB

• 1D: 0.08%
• 1M: 0.27%
• YTD: 0.53%
• 6M: 0.69%
• 1Y: 3.65%
• 3Y*: 5.01%
• 5Y*: 1.91%
• 10Y*: 2.24%

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

MSTI vs. ISTB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
MSTI Madison Short-Term Strategic Income ETF	0.73%	6.33%	4.84%	4.13%
ISTB iShares Core 1-5 Year USD Bond ETF	0.53%	6.36%	4.37%	3.52%

Correlation

The correlation between MSTI and ISTB is 0.73, 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	0.73
Correlation (All Time) Calculated using the full available price history since Sep 6, 2023	0.78

The correlation between MSTI and ISTB has been stable across timeframes, ranging from 0.73 to 0.78 - a consistent structural relationship.

Return for Risk

MSTI vs. ISTB — Risk / Return Rank

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

MSTI

MSTI Risk / Return Rank: 54
MSTI Sharpe Ratio Rank: 46
MSTI Sortino Ratio Rank: 48
MSTI Omega Ratio Rank: 50
MSTI Calmar Ratio Rank: 60
MSTI Martin Ratio Rank: 66

ISTB

ISTB Risk / Return Rank: 67
ISTB Sharpe Ratio Rank: 66
ISTB Sortino Ratio Rank: 75
ISTB Omega Ratio Rank: 71
ISTB Calmar Ratio Rank: 62
ISTB Martin Ratio Rank: 63

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.

MSTI vs. ISTB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Madison Short-Term Strategic Income ETF (MSTI) and iShares Core 1-5 Year USD Bond ETF (ISTB). 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.

	MSTI	ISTB	Difference
Sharpe ratio: Return per unit of total volatility	1.50	2.05	-0.55
Sortino ratio: Return per unit of downside risk	2.24	3.14	-0.91
Omega ratio: Gain probability vs. loss probability	1.30	1.39	-0.10
Calmar ratio: Return relative to maximum drawdown	2.77	2.91	-0.15
Martin ratio: Return relative to average drawdown	11.20	10.69	+0.51

MSTI vs. ISTB - Sharpe Ratio Comparison

The current MSTI Sharpe Ratio is 1.50, which is comparable to the ISTB Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of MSTI and ISTB, 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

MSTI vs. ISTB - Drawdown Comparison

The maximum MSTI drawdown since its inception was -1.48%, smaller than the maximum ISTB drawdown of -9.34%. Use the drawdown chart below to compare losses from any high point for MSTI and ISTB.

Drawdown Indicators

	MSTI	ISTB	Difference
Max Drawdown Largest peak-to-trough decline	-1.48%	-9.34%	+7.86%
Max Drawdown (1Y) Largest decline over 1 year	-1.32%	-1.26%	-0.06%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.36%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-9.34%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-9.34%	—
Current Drawdown Current decline from peak	-0.23%	-0.38%	+0.15%
Average Drawdown Average peak-to-trough decline	-0.29%	-1.22%	+0.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.32%	0.34%	-0.02%

Volatility

MSTI vs. ISTB - Volatility Comparison

The current volatility for Madison Short-Term Strategic Income ETF (MSTI) is 0.49%, while iShares Core 1-5 Year USD Bond ETF (ISTB) has a volatility of 0.64%. This indicates that MSTI experiences smaller price fluctuations and is considered to be less risky than ISTB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTI	ISTB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.49%	0.64%	-0.15%
Volatility (6M) Calculated over the trailing 6-month period	1.64%	1.36%	+0.28%
Volatility (1Y) Calculated over the trailing 1-year period	2.45%	1.79%	+0.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.70%	2.80%	-0.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.70%	2.51%	+0.19%

MSTI vs. ISTB - Expense Ratio Comparison

MSTI has a 0.40% expense ratio, which is higher than ISTB's 0.06% expense ratio.

Dividends

MSTI vs. ISTB - Dividend Comparison

MSTI's dividend yield for the trailing twelve months is around 5.33%, more than ISTB's 4.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ISTB iShares Core 1-5 Year USD Bond ETF	4.25%	4.12%	3.83%	2.97%	2.01%	1.69%	2.20%	2.75%	2.57%	2.06%	1.90%	1.58%
MSTI Madison Short-Term Strategic Income ETF	5.33%	5.40%	5.48%	1.55%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MSTI and ISTB in my portfolio?

MSTI and ISTB have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSTI or ISTB?

ISTB has higher volatility (0.64%) compared to MSTI (0.49%). In terms of maximum drawdown, MSTI dropped -1.48% vs ISTB's -9.34%.

Which ETF is better, MSTI or ISTB?

On 1-year performance, ISTB leads with 3.65% vs 3.63% for MSTI. On fees, ISTB is cheaper at 0.06% per year. On volatility, MSTI has been the lower-risk option at 0.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSTI or ISTB?

Over the 1-year period, ISTB has performed better with a 3.65% return vs 3.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSTI or ISTB?

ISTB is cheaper with a 0.06% expense ratio, compared with 0.40% for MSTI.

Which ETF pays a higher dividend yield, MSTI or ISTB?

MSTI has the higher dividend yield at 5.33%, compared with 4.25% for ISTB.

What is the main difference between MSTI and ISTB?

They also come from different issuers: Madison and iShares. Their fees differ too: 0.40% for MSTI and 0.06% for ISTB.

Which has better risk-adjusted returns?

ISTB currently has the higher Sharpe Ratio (2.05 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.