MSTQX vs. MSTBX

Last updated Jul 14, 2026

MSTQX (Morningstar U.S. Equity Fund) and MSTBX (Morningstar Defensive Bond Fund) are both mutual funds - MSTQX is a Large Cap Blend Equities fund managed by Morningstar, while MSTBX is a Short-Term Bond fund managed by Morningstar. Over the past 5 years, MSTQX returned 5.98%/yr vs 2.31%/yr for MSTBX. At a 0.10 correlation, their price movements are largely independent. MSTQX charges 0.85%/yr vs 0.52%/yr for MSTBX.

Performance

MSTQX vs. MSTBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morningstar U.S. Equity Fund (MSTQX) 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, MSTQX achieves a 7.28% return, which is significantly higher than MSTBX's -0.07% return.

MSTQX

• 1D: 0.55%
• 1M: 1.99%
• 6M: 4.48%
• YTD: 7.28%
• 1Y: -4.67%
• 3Y*: 9.33%
• 5Y*: 5.98%
• 10Y*: —

MSTBX

• 1D: -0.10%
• 1M: 0.04%
• 6M: -0.17%
• YTD: -0.07%
• 1Y: 1.82%
• 3Y*: 4.80%
• 5Y*: 2.31%
• 10Y*: —

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

MSTQX vs. MSTBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
MSTQX Morningstar U.S. Equity Fund	7.28%	-5.56%	18.94%	25.24%	-16.29%	26.15%	10.49%	26.02%	-10.45%
MSTBX Morningstar Defensive Bond Fund	-0.07%	5.19%	4.52%	7.16%	-4.73%	0.84%	4.75%	3.53%	0.39%

Correlation

The correlation between MSTQX and MSTBX is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.32
Correlation (3Y) Calculated over the trailing 3-year period	0.20
Correlation (5Y) Calculated over the trailing 5-year period	0.17
Correlation (All Time) Calculated using the full available price history since Nov 5, 2018	0.10

Over the past year, MSTQX and MSTBX have become more correlated (0.32) than their long-term average of 0.10, meaning their price movements have been converging.

Return for Risk

MSTQX vs. MSTBX — Risk / Return Rank

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

MSTQX

MSTQX Risk / Return Rank: 2
MSTQX Sharpe Ratio Rank: 2
MSTQX Sortino Ratio Rank: 2
MSTQX Omega Ratio Rank: 2
MSTQX Calmar Ratio Rank: 2
MSTQX Martin Ratio Rank: 2

MSTBX

MSTBX Risk / Return Rank: 25
MSTBX Sharpe Ratio Rank: 25
MSTBX Sortino Ratio Rank: 25
MSTBX Omega Ratio Rank: 25
MSTBX Calmar Ratio Rank: 30
MSTBX Martin Ratio Rank: 21

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.

MSTQX vs. MSTBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morningstar U.S. Equity Fund (MSTQX) 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.

	MSTQX	MSTBX	Difference
Sharpe ratio: Return per unit of total volatility	-0.28	1.05	-1.33
Sortino ratio: Return per unit of downside risk	-0.21	1.57	-1.77
Omega ratio: Gain probability vs. loss probability	0.96	1.20	-0.24
Calmar ratio: Return relative to maximum drawdown	-0.26	1.59	-1.86
Martin ratio: Return relative to average drawdown	-0.51	3.95	-4.46

MSTQX vs. MSTBX - Sharpe Ratio Comparison

The current MSTQX Sharpe Ratio is -0.28, which is lower than the MSTBX Sharpe Ratio of 1.05. The chart below compares the historical Sharpe Ratios of MSTQX 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

MSTQX vs. MSTBX - Drawdown Comparison

The maximum MSTQX drawdown since its inception was -36.23%, which is greater than MSTBX's maximum drawdown of -6.31%. Use the drawdown chart below to compare losses from any high point for MSTQX and MSTBX.

Drawdown Indicators

	MSTQX	MSTBX	Difference
Max Drawdown Largest peak-to-trough decline	-36.23%	-6.31%	-29.92%
Max Drawdown (1Y) Largest decline over 1 year	-21.58%	-1.41%	-20.17%
Max Drawdown (3Y) Largest decline over 3 years	-21.58%	-1.42%	-20.16%
Max Drawdown (5Y) Largest decline over 5 years	-23.61%	-6.31%	-17.30%
Current Drawdown Current decline from peak	-10.55%	-0.88%	-9.67%
Average Drawdown Average peak-to-trough decline	-6.32%	-1.02%	-5.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.10%	0.54%	+9.56%

Volatility

MSTQX vs. MSTBX - Volatility Comparison

Morningstar U.S. Equity Fund (MSTQX) has a higher volatility of 3.53% compared to Morningstar Defensive Bond Fund (MSTBX) at 0.59%. This indicates that MSTQX'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

	MSTQX	MSTBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.53%	0.59%	+2.94%
Volatility (6M) Calculated over the trailing 6-month period	18.14%	1.43%	+16.71%
Volatility (1Y) Calculated over the trailing 1-year period	20.16%	2.14%	+18.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.62%	2.39%	+16.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.62%	2.09%	+18.53%

MSTQX vs. MSTBX - Expense Ratio Comparison

MSTQX has a 0.85% expense ratio, which is higher than MSTBX's 0.52% expense ratio.

Dividends

MSTQX vs. MSTBX - Dividend Comparison

MSTQX's dividend yield for the trailing twelve months is around 0.64%, less than MSTBX's 2.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
MSTBX Morningstar Defensive Bond Fund	2.44%	2.79%	4.23%	3.80%	2.64%	2.64%	3.17%	2.69%	0.29%
MSTQX Morningstar U.S. Equity Fund	0.64%	0.69%	10.80%	4.21%	9.79%	15.98%	2.15%	2.04%	0.17%

Frequently Asked Questions

Can I hold both MSTQX and MSTBX in my portfolio?

MSTQX and MSTBX have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSTQX or MSTBX?

MSTQX has higher volatility (3.53%) compared to MSTBX (0.59%). In terms of maximum drawdown, MSTQX dropped -36.23% vs MSTBX's -6.31%.

Which has better risk-adjusted returns?

MSTBX currently has the higher Sharpe Ratio (1.05 vs -0.28), 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.