MSTRX vs. MSTBX

Last updated Jun 23, 2026

MSTRX (Morningstar Total Return Bond Fund) and MSTBX (Morningstar Defensive Bond Fund) are both mutual funds - MSTRX is a Intermediate Core Bond fund managed by Morningstar, while MSTBX is a Short-Term Bond fund managed by Morningstar. Over the past 5 years, MSTRX returned -0.97%/yr vs 2.36%/yr for MSTBX. A 0.79 correlation means they provide meaningful diversification when combined. MSTRX charges 0.55%/yr vs 0.52%/yr for MSTBX.

Performance

MSTRX vs. MSTBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morningstar Total Return Bond Fund (MSTRX) 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, MSTRX achieves a -0.03% return, which is significantly higher than MSTBX's -0.11% return.

MSTRX

• 1D: 0.23%
• 1M: 0.96%
• YTD: -0.03%
• 6M: 0.28%
• 1Y: 3.08%
• 3Y*: 3.12%
• 5Y*: -0.97%
• 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)

MSTRX vs. MSTBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
MSTRX Morningstar Total Return Bond Fund	-0.03%	4.87%	1.75%	5.54%	-15.53%	-1.56%	9.57%	9.34%	2.40%
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 MSTRX and MSTBX is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since Nov 5, 2018	0.79

The correlation between MSTRX and MSTBX has been stable across timeframes, ranging from 0.79 to 0.86 - a consistent structural relationship.

Return for Risk

MSTRX vs. MSTBX — Risk / Return Rank

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

MSTRX

MSTRX Risk / Return Rank: 13
MSTRX Sharpe Ratio Rank: 13
MSTRX Sortino Ratio Rank: 13
MSTRX Omega Ratio Rank: 12
MSTRX Calmar Ratio Rank: 14
MSTRX Martin Ratio Rank: 12

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.

MSTRX vs. MSTBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morningstar Total Return Bond Fund (MSTRX) 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.

	MSTRX	MSTBX	Difference
Sharpe ratio: Return per unit of total volatility	0.93	1.36	-0.43
Sortino ratio: Return per unit of downside risk	1.38	2.06	-0.68
Omega ratio: Gain probability vs. loss probability	1.17	1.26	-0.09
Calmar ratio: Return relative to maximum drawdown	1.25	2.09	-0.84
Martin ratio: Return relative to average drawdown	3.25	5.55	-2.30

MSTRX vs. MSTBX - Sharpe Ratio Comparison

The current MSTRX Sharpe Ratio is 0.93, which is lower than the MSTBX Sharpe Ratio of 1.36. The chart below compares the historical Sharpe Ratios of MSTRX 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

MSTRX vs. MSTBX - Drawdown Comparison

The maximum MSTRX drawdown since its inception was -20.97%, which is greater than MSTBX's maximum drawdown of -6.31%. Use the drawdown chart below to compare losses from any high point for MSTRX and MSTBX.

Drawdown Indicators

	MSTRX	MSTBX	Difference
Max Drawdown Largest peak-to-trough decline	-20.97%	-6.31%	-14.66%
Max Drawdown (1Y) Largest decline over 1 year	-3.06%	-1.41%	-1.65%
Max Drawdown (3Y) Largest decline over 3 years	-6.67%	-1.42%	-5.25%
Max Drawdown (5Y) Largest decline over 5 years	-20.77%	-6.31%	-14.46%
Current Drawdown Current decline from peak	-6.39%	-0.92%	-5.47%
Average Drawdown Average peak-to-trough decline	-7.11%	-1.02%	-6.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.31%	0.53%	+0.78%

Volatility

MSTRX vs. MSTBX - Volatility Comparison

Morningstar Total Return Bond Fund (MSTRX) has a higher volatility of 1.24% compared to Morningstar Defensive Bond Fund (MSTBX) at 0.69%. This indicates that MSTRX'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

	MSTRX	MSTBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.24%	0.69%	+0.55%
Volatility (6M) Calculated over the trailing 6-month period	2.83%	1.47%	+1.36%
Volatility (1Y) Calculated over the trailing 1-year period	4.11%	2.16%	+1.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.25%	2.39%	+3.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.65%	2.09%	+3.56%

MSTRX vs. MSTBX - Expense Ratio Comparison

MSTRX has a 0.55% expense ratio, which is higher than MSTBX's 0.52% expense ratio.

Dividends

MSTRX vs. MSTBX - Dividend Comparison

MSTRX's dividend yield for the trailing twelve months is around 2.59%, 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%
MSTRX Morningstar Total Return Bond Fund	2.59%	2.60%	4.02%	3.42%	2.50%	2.13%	4.93%	5.23%	0.29%

Frequently Asked Questions

Can I hold both MSTRX and MSTBX in my portfolio?

MSTRX and MSTBX have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSTRX or MSTBX?

MSTRX has higher volatility (1.24%) compared to MSTBX (0.69%). In terms of maximum drawdown, MSTRX dropped -20.97% vs MSTBX's -6.31%.

Which has better risk-adjusted returns?

MSTBX currently has the higher Sharpe Ratio (1.36 vs 0.93), 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.