NBSD vs. ZTWO

Last updated Jun 23, 2026

NBSD (Neuberger Berman Short Duration Income ETF) and ZTWO (F/M 2-Year Investment Grade Corporate Bond ETF) are both Short-Term Bond funds. NBSD is actively managed, while ZTWO is passively managed. Over the past year, NBSD returned 4.26% vs 3.70% for ZTWO. A 0.55 correlation means they provide meaningful diversification when combined. NBSD charges 0.35%/yr vs 0.15%/yr for ZTWO.

Performance

NBSD vs. ZTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Neuberger Berman Short Duration Income ETF (NBSD) and F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with NBSD having a 0.85% return and ZTWO slightly higher at 0.87%.

NBSD

• 1D: -0.04%
• 1M: 0.13%
• YTD: 0.85%
• 6M: 0.94%
• 1Y: 4.26%
• 3Y*: —
• 5Y*: —
• 10Y*: —

ZTWO

• 1D: -0.10%
• 1M: 0.20%
• YTD: 0.87%
• 6M: 1.04%
• 1Y: 3.70%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

NBSD vs. ZTWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
NBSD Neuberger Berman Short Duration Income ETF	0.85%	6.18%	0.41%
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	0.87%	5.49%	0.36%

Correlation

The correlation between NBSD and ZTWO is 0.66, 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	0.66
Correlation (All Time) Calculated using the full available price history since Dec 19, 2024	0.55

The correlation between NBSD and ZTWO shifts across timeframes, from 0.55 (all time) to 0.66 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

NBSD vs. ZTWO — Risk / Return Rank

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

NBSD

NBSD Risk / Return Rank: 88
NBSD Sharpe Ratio Rank: 91
NBSD Sortino Ratio Rank: 94
NBSD Omega Ratio Rank: 93
NBSD Calmar Ratio Rank: 73
NBSD Martin Ratio Rank: 88

ZTWO

ZTWO Risk / Return Rank: 88
ZTWO Sharpe Ratio Rank: 88
ZTWO Sortino Ratio Rank: 93
ZTWO Omega Ratio Rank: 91
ZTWO Calmar Ratio Rank: 79
ZTWO Martin Ratio Rank: 89

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.

NBSD vs. ZTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Neuberger Berman Short Duration Income ETF (NBSD) and F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO). 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.

	NBSD	ZTWO	Difference
Sharpe ratio: Return per unit of total volatility	2.94	2.78	+0.17
Sortino ratio: Return per unit of downside risk	4.69	4.40	+0.29
Omega ratio: Gain probability vs. loss probability	1.63	1.56	+0.07
Calmar ratio: Return relative to maximum drawdown	3.61	3.98	-0.37
Martin ratio: Return relative to average drawdown	18.53	18.68	-0.15

NBSD vs. ZTWO - Sharpe Ratio Comparison

The current NBSD Sharpe Ratio is 2.94, which is comparable to the ZTWO Sharpe Ratio of 2.78. The chart below compares the historical Sharpe Ratios of NBSD and ZTWO, 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

NBSD vs. ZTWO - Drawdown Comparison

The maximum NBSD drawdown since its inception was -2.63%, which is greater than ZTWO's maximum drawdown of -0.93%. Use the drawdown chart below to compare losses from any high point for NBSD and ZTWO.

Drawdown Indicators

	NBSD	ZTWO	Difference
Max Drawdown Largest peak-to-trough decline	-2.63%	-0.93%	-1.70%
Max Drawdown (1Y) Largest decline over 1 year	-1.19%	-0.93%	-0.26%
Current Drawdown Current decline from peak	-0.24%	-0.28%	+0.04%
Average Drawdown Average peak-to-trough decline	-0.23%	-0.10%	-0.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.23%	0.20%	+0.03%

Volatility

NBSD vs. ZTWO - Volatility Comparison

The current volatility for Neuberger Berman Short Duration Income ETF (NBSD) is 0.43%, while F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) has a volatility of 0.46%. This indicates that NBSD experiences smaller price fluctuations and is considered to be less risky than ZTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NBSD	ZTWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.43%	0.46%	-0.03%
Volatility (6M) Calculated over the trailing 6-month period	1.04%	1.02%	+0.02%
Volatility (1Y) Calculated over the trailing 1-year period	1.46%	1.34%	+0.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.76%	1.50%	+1.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.76%	1.50%	+1.26%

NBSD vs. ZTWO - Expense Ratio Comparison

NBSD has a 0.35% expense ratio, which is higher than ZTWO's 0.15% expense ratio.

Dividends

NBSD vs. ZTWO - Dividend Comparison

NBSD's dividend yield for the trailing twelve months is around 4.81%, more than ZTWO's 4.12% yield.

Position	TTM	2025	2024
NBSD Neuberger Berman Short Duration Income ETF	4.81%	5.06%	2.96%
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	4.12%	4.31%	0.39%

Frequently Asked Questions

Can I hold both NBSD and ZTWO in my portfolio?

NBSD and ZTWO have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NBSD or ZTWO?

ZTWO has higher volatility (0.46%) compared to NBSD (0.43%). In terms of maximum drawdown, NBSD dropped -2.63% vs ZTWO's -0.93%.

Which ETF is better, NBSD or ZTWO?

On 1-year performance, NBSD leads with 4.26% vs 3.70% for ZTWO. On fees, ZTWO is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NBSD or ZTWO?

Over the 1-year period, NBSD has performed better with a 4.26% return vs 3.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NBSD or ZTWO?

ZTWO is cheaper with a 0.15% expense ratio, compared with 0.35% for NBSD.

Which ETF pays a higher dividend yield, NBSD or ZTWO?

NBSD has the higher dividend yield at 4.81%, compared with 4.12% for ZTWO.

What is the main difference between NBSD and ZTWO?

They also come from different issuers: Neuberger Berman and F/m. Their fees differ too: 0.35% for NBSD and 0.15% for ZTWO.

Which has better risk-adjusted returns?

NBSD currently has the higher Sharpe Ratio (2.94 vs 2.78), 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.