USMV vs. MBB
USMV (iShares MSCI USA Min Vol Factor ETF) and MBB (iShares MBS Bond ETF) are both exchange-traded funds - USMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Index, while MBB is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index. Both are passively managed. Over the past 10 years, USMV returned 9.93%/yr vs 1.30%/yr for MBB. At a 0.08 correlation, their price movements are largely independent. USMV charges 0.15%/yr vs 0.06%/yr for MBB.
Performance
USMV vs. MBB - Performance Comparison
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Returns By Period
In the year-to-date period, USMV achieves a 2.65% return, which is significantly higher than MBB's 0.58% return. Over the past 10 years, USMV has outperformed MBB with an annualized return of 9.93%, while MBB has yielded a comparatively lower 1.30% annualized return.
USMV
- 1D
- -0.69%
- 1M
- 2.01%
- YTD
- 2.65%
- 6M
- 2.61%
- 1Y
- 4.37%
- 3Y*
- 11.79%
- 5Y*
- 7.45%
- 10Y*
- 9.93%
MBB
- 1D
- -0.23%
- 1M
- 0.31%
- YTD
- 0.58%
- 6M
- 0.71%
- 1Y
- 6.76%
- 3Y*
- 4.36%
- 5Y*
- 0.34%
- 10Y*
- 1.30%
USMV vs. MBB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
USMV iShares MSCI USA Min Vol Factor ETF | 2.65% | 7.65% | 15.74% | 10.33% | -9.43% | 20.85% | 5.64% | 27.69% | 1.33% | 18.91% |
MBB iShares MBS Bond ETF | 0.58% | 8.38% | 1.31% | 5.01% | -11.74% | -1.43% | 4.08% | 6.18% | 0.82% | 2.49% |
Correlation
The correlation between USMV and MBB is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.28 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.27 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.25 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.16 |
Correlation (All Time) Calculated using the full available price history since Oct 21, 2011 | 0.08 |
Over the past year, USMV and MBB have become more correlated (0.28) than their long-term average of 0.08, meaning their price movements have been converging.
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Return for Risk
USMV vs. MBB — Risk / Return Rank
USMV
MBB
USMV vs. MBB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Min Vol Factor ETF (USMV) and iShares MBS Bond ETF (MBB). 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.
| USMV | MBB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.99 | ||
| Sortino ratioReturn per unit of downside risk | -1.43 | ||
| Omega ratioGain probability vs. loss probability | 1.09 | 1.27 | -0.18 |
| Calmar ratioReturn relative to maximum drawdown | 0.68 | 2.31 | -1.63 |
| Martin ratioReturn relative to average drawdown | 2.27 | 7.64 | -5.37 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| USMV | MBB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.52 | 1.51 | -0.99 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.61 | 0.05 | +0.56 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.69 | 0.25 | +0.44 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.87 | 0.58 | +0.28 |
Drawdowns
USMV vs. MBB - Drawdown Comparison
The maximum USMV drawdown since its inception was -33.10%, which is greater than MBB's maximum drawdown of -17.64%. Use the drawdown chart below to compare losses from any high point for USMV and MBB.
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Drawdown Indicators
| USMV | MBB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -33.10% | -17.64% | -15.46% |
Max Drawdown (1Y)Largest decline over 1 year | -6.46% | -2.94% | -3.52% |
Max Drawdown (3Y)Largest decline over 3 years | -9.36% | -7.68% | -1.68% |
Max Drawdown (5Y)Largest decline over 5 years | -17.93% | -17.19% | -0.74% |
Max Drawdown (10Y)Largest decline over 10 years | -33.10% | -17.64% | -15.46% |
Current DrawdownCurrent decline from peak | -1.18% | -1.52% | +0.34% |
Average DrawdownAverage peak-to-trough decline | -2.88% | -2.35% | -0.53% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.93% | 0.89% | +1.04% |
Volatility
USMV vs. MBB - Volatility Comparison
iShares MSCI USA Min Vol Factor ETF (USMV) has a higher volatility of 2.38% compared to iShares MBS Bond ETF (MBB) at 1.59%. This indicates that USMV's price experiences larger fluctuations and is considered to be riskier than MBB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| USMV | MBB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.38% | 1.59% | +0.79% |
Volatility (6M)Calculated over the trailing 6-month period | 5.91% | 3.23% | +2.68% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.50% | 4.51% | +3.99% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.35% | 6.81% | +5.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.51% | 5.31% | +9.20% |
USMV vs. MBB - Expense Ratio Comparison
USMV has a 0.15% expense ratio, which is higher than MBB's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
USMV vs. MBB - Dividend Comparison
USMV's dividend yield for the trailing twelve months is around 1.53%, less than MBB's 4.28% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 4.28% | 4.21% | 3.94% | 3.40% | 2.31% | 1.05% | 2.10% | 2.77% | 2.64% | 2.23% | 2.58% | 2.66% |
USMV iShares MSCI USA Min Vol Factor ETF | 1.53% | 1.49% | 1.67% | 1.82% | 1.62% | 1.26% | 1.81% | 1.88% | 2.12% | 1.77% | 2.22% | 2.02% |
Frequently Asked Questions
USMV and MBB have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
USMV has higher volatility (2.38%) compared to MBB (1.59%). In terms of maximum drawdown, USMV dropped -33.10% vs MBB's -17.64%.
On 10-year performance, USMV leads with 9.93% vs 1.30% for MBB. On fees, MBB is cheaper at 0.06% per year. On volatility, MBB has been the lower-risk option at 1.59%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, USMV has performed better with a 9.93% return vs 1.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MBB is cheaper with a 0.06% expense ratio, compared with 0.15% for USMV.
MBB has the higher dividend yield at 4.28%, compared with 1.53% for USMV.
USMV is categorized as Large Cap Blend Equities, while MBB is Mortgage Backed Securities. USMV tracks MSCI USA Minimum Volatility Index, while MBB tracks Barclays Capital U.S. MBS Index. Their fees differ too: 0.15% for USMV and 0.06% for MBB.
MBB currently has the higher Sharpe Ratio (1.51 vs 0.52), 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.
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