MSTMX vs. MSTBX

Last updated Jun 23, 2026

MSTMX (Morningstar Multisector Bond Fund) and MSTBX (Morningstar Defensive Bond Fund) are both mutual funds - MSTMX is a Multisector Bonds fund managed by Morningstar, while MSTBX is a Short-Term Bond fund managed by Morningstar. Over the past 5 years, MSTMX returned 2.05%/yr vs 2.36%/yr for MSTBX. At a 0.48 correlation, their price movements are largely independent. MSTMX charges 0.58%/yr vs 0.52%/yr for MSTBX.

Performance

MSTMX vs. MSTBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morningstar Multisector Bond Fund (MSTMX) and Morningstar Defensive Bond Fund (MSTBX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSTMX achieves a 1.91% return, which is significantly higher than MSTBX's -0.11% return.

MSTMX

• 1D: -0.11%
• 1M: 1.30%
• YTD: 1.91%
• 6M: 2.23%
• 1Y: 7.33%
• 3Y*: 7.59%
• 5Y*: 2.05%
• 10Y*: —

MSTBX

• 1D: 0.10%
• 1M: 0.14%
• YTD: -0.11%
• 6M: 0.00%
• 1Y: 2.36%
• 3Y*: 4.80%
• 5Y*: 2.36%
• 10Y*: —

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

MSTMX vs. MSTBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
MSTMX Morningstar Multisector Bond Fund	1.91%	10.03%	4.60%	10.77%	-13.11%	-2.86%	6.45%	10.53%	-0.23%
MSTBX Morningstar Defensive Bond Fund	-0.11%	5.19%	4.52%	7.16%	-4.73%	0.84%	4.75%	3.53%	0.39%

Correlation

The correlation between MSTMX and MSTBX is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (All Time) Calculated using the full available price history since Nov 5, 2018	0.48

The correlation between MSTMX and MSTBX shifts across timeframes, from 0.48 (all time) to 0.66 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

MSTMX vs. MSTBX — Risk / Return Rank

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

MSTMX

MSTMX Risk / Return Rank: 51
MSTMX Sharpe Ratio Rank: 55
MSTMX Sortino Ratio Rank: 57
MSTMX Omega Ratio Rank: 62
MSTMX Calmar Ratio Rank: 39
MSTMX Martin Ratio Rank: 40

MSTBX

MSTBX Risk / Return Rank: 28
MSTBX Sharpe Ratio Rank: 26
MSTBX Sortino Ratio Rank: 28
MSTBX Omega Ratio Rank: 29
MSTBX Calmar Ratio Rank: 34
MSTBX Martin Ratio Rank: 25

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.

MSTMX vs. MSTBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morningstar Multisector Bond Fund (MSTMX) and Morningstar Defensive Bond Fund (MSTBX). 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.

	MSTMX	MSTBX	Difference
Sharpe ratio: Return per unit of total volatility	2.01	1.36	+0.65
Sortino ratio: Return per unit of downside risk	2.89	2.06	+0.83
Omega ratio: Gain probability vs. loss probability	1.40	1.26	+0.14
Calmar ratio: Return relative to maximum drawdown	2.24	2.09	+0.15
Martin ratio: Return relative to average drawdown	8.21	5.55	+2.66

MSTMX vs. MSTBX - Sharpe Ratio Comparison

The current MSTMX Sharpe Ratio is 2.01, which is higher than the MSTBX Sharpe Ratio of 1.36. The chart below compares the historical Sharpe Ratios of MSTMX and MSTBX, 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

MSTMX vs. MSTBX - Drawdown Comparison

The maximum MSTMX drawdown since its inception was -21.37%, which is greater than MSTBX's maximum drawdown of -6.31%. Use the drawdown chart below to compare losses from any high point for MSTMX and MSTBX.

Drawdown Indicators

	MSTMX	MSTBX	Difference
Max Drawdown Largest peak-to-trough decline	-21.37%	-6.31%	-15.06%
Max Drawdown (1Y) Largest decline over 1 year	-4.09%	-1.41%	-2.68%
Max Drawdown (3Y) Largest decline over 3 years	-5.79%	-1.42%	-4.37%
Max Drawdown (5Y) Largest decline over 5 years	-21.20%	-6.31%	-14.89%
Current Drawdown Current decline from peak	-0.42%	-0.92%	+0.50%
Average Drawdown Average peak-to-trough decline	-4.98%	-1.02%	-3.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.09%	0.53%	+0.56%

Volatility

MSTMX vs. MSTBX - Volatility Comparison

Morningstar Multisector Bond Fund (MSTMX) has a higher volatility of 1.41% compared to Morningstar Defensive Bond Fund (MSTBX) at 0.69%. This indicates that MSTMX's price experiences larger fluctuations and is considered to be riskier than MSTBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTMX	MSTBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.41%	0.69%	+0.72%
Volatility (6M) Calculated over the trailing 6-month period	3.45%	1.47%	+1.98%
Volatility (1Y) Calculated over the trailing 1-year period	4.56%	2.16%	+2.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.51%	2.39%	+3.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.77%	2.09%	+3.68%

MSTMX vs. MSTBX - Expense Ratio Comparison

MSTMX has a 0.58% expense ratio, which is higher than MSTBX's 0.52% expense ratio.

Dividends

MSTMX vs. MSTBX - Dividend Comparison

MSTMX's dividend yield for the trailing twelve months is around 4.21%, more than MSTBX's 2.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
MSTBX Morningstar Defensive Bond Fund	2.45%	2.79%	4.23%	3.80%	2.64%	2.64%	3.17%	2.69%	0.29%
MSTMX Morningstar Multisector Bond Fund	4.21%	4.00%	6.01%	5.26%	1.42%	4.17%	2.68%	6.18%	0.37%

Frequently Asked Questions

Can I hold both MSTMX and MSTBX in my portfolio?

MSTMX and MSTBX have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSTMX or MSTBX?

MSTMX has higher volatility (1.41%) compared to MSTBX (0.69%). In terms of maximum drawdown, MSTMX dropped -21.37% vs MSTBX's -6.31%.

Which has better risk-adjusted returns?

MSTMX currently has the higher Sharpe Ratio (2.01 vs 1.36), 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.