PMBS vs. MUNI

Last updated Jun 25, 2026

PMBS (PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund) and MUNI (PIMCO Intermediate Municipal Bond Active ETF) are both exchange-traded funds - PMBS is a Mortgage Backed Securities fund actively managed by PIMCO, while MUNI is a Municipal Bonds fund actively managed by PIMCO. Both are actively managed. Over the past year, PMBS returned 6.63% vs 5.99% for MUNI. A 0.74 correlation means they provide meaningful diversification when combined. PMBS charges 0.71%/yr vs 0.35%/yr for MUNI.

Performance

PMBS vs. MUNI - 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 PIMCO Intermediate Municipal Bond Active ETF (MUNI). 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 PMBS having a 1.60% return and MUNI slightly higher at 1.61%.

PMBS

• 1D: 0.54%
• 1M: 1.11%
• YTD: 1.60%
• 6M: 1.48%
• 1Y: 6.63%
• 3Y*: —
• 5Y*: —
• 10Y*: —

MUNI

• 1D: 0.13%
• 1M: 1.25%
• YTD: 1.61%
• 6M: 1.67%
• 1Y: 5.99%
• 3Y*: 3.82%
• 5Y*: 1.34%
• 10Y*: 2.11%

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

PMBS vs. MUNI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PMBS PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund	1.60%	8.92%	-2.80%
MUNI PIMCO Intermediate Municipal Bond Active ETF	1.61%	4.72%	-1.01%

Correlation

The correlation between PMBS and MUNI is 0.70, 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	0.70
Correlation (All Time) Calculated using the full available price history since Sep 23, 2024	0.74

The correlation between PMBS and MUNI has been stable across timeframes, ranging from 0.70 to 0.74 - a consistent structural relationship.

Return for Risk

PMBS vs. MUNI — Risk / Return Rank

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

PMBS

PMBS Risk / Return Rank: 52
PMBS Sharpe Ratio Rank: 53
PMBS Sortino Ratio Rank: 55
PMBS Omega Ratio Rank: 52
PMBS Calmar Ratio Rank: 52
PMBS Martin Ratio Rank: 48

MUNI

MUNI Risk / Return Rank: 78
MUNI Sharpe Ratio Rank: 90
MUNI Sortino Ratio Rank: 93
MUNI Omega Ratio Rank: 94
MUNI Calmar Ratio Rank: 59
MUNI Martin Ratio Rank: 54

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. MUNI - 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 PIMCO Intermediate Municipal Bond Active ETF (MUNI). 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	MUNI	Difference
Sharpe ratio: Return per unit of total volatility	1.58	2.70	-1.12
Sortino ratio: Return per unit of downside risk	2.34	4.02	-1.68
Omega ratio: Gain probability vs. loss probability	1.29	1.59	-0.31
Calmar ratio: Return relative to maximum drawdown	2.24	2.62	-0.38
Martin ratio: Return relative to average drawdown	7.12	8.41	-1.29

PMBS vs. MUNI - Sharpe Ratio Comparison

The current PMBS Sharpe Ratio is 1.58, which is lower than the MUNI Sharpe Ratio of 2.70. The chart below compares the historical Sharpe Ratios of PMBS and MUNI, 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. MUNI - Drawdown Comparison

The maximum PMBS drawdown since its inception was -4.35%, smaller than the maximum MUNI drawdown of -11.15%. Use the drawdown chart below to compare losses from any high point for PMBS and MUNI.

Drawdown Indicators

	PMBS	MUNI	Difference
Max Drawdown Largest peak-to-trough decline	-4.35%	-11.15%	+6.80%
Max Drawdown (1Y) Largest decline over 1 year	-2.97%	-2.29%	-0.68%
Max Drawdown (3Y) Largest decline over 3 years	—	-4.09%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-11.15%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-11.15%	—
Current Drawdown Current decline from peak	-0.87%	-0.43%	-0.44%
Average Drawdown Average peak-to-trough decline	-1.15%	-1.73%	+0.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.93%	0.71%	+0.22%

Volatility

PMBS vs. MUNI - Volatility Comparison

PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) has a higher volatility of 1.36% compared to PIMCO Intermediate Municipal Bond Active ETF (MUNI) at 0.60%. This indicates that PMBS's price experiences larger fluctuations and is considered to be riskier than MUNI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PMBS	MUNI	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.36%	0.60%	+0.76%
Volatility (6M) Calculated over the trailing 6-month period	3.24%	1.63%	+1.61%
Volatility (1Y) Calculated over the trailing 1-year period	4.22%	2.23%	+1.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.89%	3.32%	+1.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.89%	3.85%	+1.04%

PMBS vs. MUNI - Expense Ratio Comparison

PMBS has a 0.71% expense ratio, which is higher than MUNI's 0.35% expense ratio.

Dividends

PMBS vs. MUNI - Dividend Comparison

PMBS's dividend yield for the trailing twelve months is around 4.95%, more than MUNI's 3.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MUNI PIMCO Intermediate Municipal Bond Active ETF	3.27%	3.26%	3.50%	3.09%	2.13%	1.62%	1.92%	2.44%	2.38%	2.37%	2.37%	2.20%
PMBS PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund	4.95%	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 MUNI in my portfolio?

PMBS and MUNI have a correlation of 0.70, 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 MUNI?

PMBS has higher volatility (1.36%) compared to MUNI (0.60%). In terms of maximum drawdown, PMBS dropped -4.35% vs MUNI's -11.15%.

Which ETF is better, PMBS or MUNI?

On 1-year performance, PMBS leads with 6.63% vs 5.99% for MUNI. On fees, MUNI is cheaper at 0.35% per year. On volatility, MUNI has been the lower-risk option at 0.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PMBS or MUNI?

Over the 1-year period, PMBS has performed better with a 6.63% return vs 5.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PMBS or MUNI?

MUNI is cheaper with a 0.35% expense ratio, compared with 0.71% for PMBS.

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

PMBS has the higher dividend yield at 4.95%, compared with 3.27% for MUNI.

What is the main difference between PMBS and MUNI?

PMBS is categorized as Mortgage Backed Securities, while MUNI is Municipal Bonds. Their fees differ too: 0.71% for PMBS and 0.35% for MUNI.

Which has better risk-adjusted returns?

MUNI currently has the higher Sharpe Ratio (2.70 vs 1.58), 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.