PMBS vs. LMBS

Last updated Jun 24, 2026

PMBS (PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund) and LMBS (First Trust Low Duration Mortgage Opportunities ETF) are both Mortgage Backed Securities funds. Both are actively managed. Over the past year, PMBS returned 6.50% vs 5.52% for LMBS. Their correlation of 0.82 suggests significant overlap in exposure. PMBS charges 0.71%/yr vs 0.68%/yr for LMBS.

Performance

PMBS vs. LMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) and First Trust Low Duration Mortgage Opportunities ETF (LMBS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PMBS achieves a 1.05% return, which is significantly lower than LMBS's 1.44% return.

PMBS

• 1D: 0.09%
• 1M: 0.57%
• YTD: 1.05%
• 6M: 1.21%
• 1Y: 6.50%
• 3Y*: —
• 5Y*: —
• 10Y*: —

LMBS

• 1D: 0.03%
• 1M: 0.40%
• YTD: 1.44%
• 6M: 1.43%
• 1Y: 5.52%
• 3Y*: 5.80%
• 5Y*: 3.11%
• 10Y*: 2.67%

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

PMBS vs. LMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PMBS PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund	1.05%	8.92%	-2.80%
LMBS First Trust Low Duration Mortgage Opportunities ETF	1.44%	7.05%	-0.48%

Correlation

The correlation between PMBS and LMBS is 0.82, 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	0.82
Correlation (All Time) Calculated using the full available price history since Sep 23, 2024	0.82

The correlation between PMBS and LMBS has been stable across timeframes, ranging from 0.82 to 0.82 - a consistent structural relationship.

Return for Risk

PMBS vs. LMBS — Risk / Return Rank

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

PMBS

PMBS Risk / Return Rank: 48
PMBS Sharpe Ratio Rank: 48
PMBS Sortino Ratio Rank: 50
PMBS Omega Ratio Rank: 48
PMBS Calmar Ratio Rank: 48
PMBS Martin Ratio Rank: 45

LMBS

LMBS Risk / Return Rank: 88
LMBS Sharpe Ratio Rank: 90
LMBS Sortino Ratio Rank: 93
LMBS Omega Ratio Rank: 91
LMBS Calmar Ratio Rank: 80
LMBS Martin Ratio Rank: 84

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.

PMBS vs. LMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) and First Trust Low Duration Mortgage Opportunities ETF (LMBS). 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.

	PMBS	LMBS	Difference
Sharpe ratio: Return per unit of total volatility	1.56	2.86	-1.30
Sortino ratio: Return per unit of downside risk	2.29	4.37	-2.08
Omega ratio: Gain probability vs. loss probability	1.28	1.57	-0.29
Calmar ratio: Return relative to maximum drawdown	2.20	3.88	-1.68
Martin ratio: Return relative to average drawdown	6.99	16.33	-9.34

PMBS vs. LMBS - Sharpe Ratio Comparison

The current PMBS Sharpe Ratio is 1.56, which is lower than the LMBS Sharpe Ratio of 2.86. The chart below compares the historical Sharpe Ratios of PMBS and LMBS, 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

PMBS vs. LMBS - Drawdown Comparison

The maximum PMBS drawdown since its inception was -4.35%, smaller than the maximum LMBS drawdown of -6.49%. Use the drawdown chart below to compare losses from any high point for PMBS and LMBS.

Drawdown Indicators

	PMBS	LMBS	Difference
Max Drawdown Largest peak-to-trough decline	-4.35%	-6.49%	+2.14%
Max Drawdown (1Y) Largest decline over 1 year	-2.97%	-1.43%	-1.54%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.72%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-6.06%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-6.49%	—
Current Drawdown Current decline from peak	-1.40%	-0.17%	-1.23%
Average Drawdown Average peak-to-trough decline	-1.15%	-0.80%	-0.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.93%	0.34%	+0.59%

Volatility

PMBS vs. LMBS - Volatility Comparison

PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) has a higher volatility of 1.27% compared to First Trust Low Duration Mortgage Opportunities ETF (LMBS) at 0.54%. This indicates that PMBS's price experiences larger fluctuations and is considered to be riskier than LMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PMBS	LMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.27%	0.54%	+0.73%
Volatility (6M) Calculated over the trailing 6-month period	3.20%	1.47%	+1.73%
Volatility (1Y) Calculated over the trailing 1-year period	4.19%	1.94%	+2.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.87%	2.57%	+2.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.87%	2.35%	+2.52%

PMBS vs. LMBS - Expense Ratio Comparison

PMBS has a 0.71% expense ratio, which is higher than LMBS's 0.68% expense ratio.

Dividends

PMBS vs. LMBS - Dividend Comparison

PMBS's dividend yield for the trailing twelve months is around 4.98%, more than LMBS's 4.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LMBS First Trust Low Duration Mortgage Opportunities ETF	4.09%	4.08%	4.28%	3.96%	2.22%	2.04%	2.27%	2.55%	2.76%	2.73%	2.84%	3.03%
PMBS PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund	4.98%	4.73%	1.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PMBS and LMBS in my portfolio?

PMBS and LMBS have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PMBS or LMBS?

PMBS has higher volatility (1.27%) compared to LMBS (0.54%). In terms of maximum drawdown, PMBS dropped -4.35% vs LMBS's -6.49%.

Which ETF is better, PMBS or LMBS?

On 1-year performance, PMBS leads with 6.50% vs 5.52% for LMBS. On fees, LMBS is cheaper at 0.68% per year. On volatility, LMBS has been the lower-risk option at 0.54%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PMBS or LMBS?

Over the 1-year period, PMBS has performed better with a 6.50% return vs 5.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PMBS or LMBS?

LMBS is cheaper with a 0.68% expense ratio, compared with 0.71% for PMBS.

Which ETF pays a higher dividend yield, PMBS or LMBS?

PMBS has the higher dividend yield at 4.98%, compared with 4.09% for LMBS.

What is the main difference between PMBS and LMBS?

They also come from different issuers: PIMCO and First Trust. Their fees differ too: 0.71% for PMBS and 0.68% for LMBS.

Which has better risk-adjusted returns?

LMBS currently has the higher Sharpe Ratio (2.86 vs 1.56), 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.