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MBB vs. MTUM: What’s The Difference?

The iShares MBS ETF (MBB) and the iShares MSCI USA Momentum Factor ETF (MTUM) are both among the Top 100 ETFs. MBB is a iShares Intermediate Government fund and MTUM is a iShares Large Growth fund. So, what’s the difference between MBB and MTUM? And which fund is better?

The expense ratio of MBB is 0.09 percentage points lower than MTUM’s (0.06% vs. 0.15%). MBB is mostly comprised of AAA bonds while MTUM has a high exposure to the financial services sector. Overall, MBB has provided lower returns than MTUM over the past 7 years.

In this article, we’ll compare MBB vs. MTUM. We’ll look at risk metrics and performance, as well as at their portfolio growth and fund composition. Moreover, I’ll also discuss MBB’s and MTUM’s holdings, annual returns, and industry exposure and examine how these affect their overall returns.


NameiShares MBS ETFiShares MSCI USA Momentum Factor ETF
CategoryIntermediate GovernmentLarge Growth
Avg. Return3.08%17.37%
Div. Yield1.88%0.44%
Expense Ratio0.06%0.15%

The iShares MBS ETF (MBB) is a Intermediate Government fund that is issued by iShares. It currently has 25.69B total assets under management and has yielded an average annual return of 3.08% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.06%.

The iShares MSCI USA Momentum Factor ETF (MTUM) is a Large Growth fund that is issued by iShares. It currently has 14.53B total assets under management and has yielded an average annual return of 17.37% over the past 10 years. The fund has a dividend yield of 0.44% with an expense ratio of 0.15%.

MBB’s dividend yield is 1.44% higher than that of MTUM (1.88% vs. 0.44%). Also, MBB yielded on average 14.29% less per year over the past decade (3.08% vs. 17.37%). The expense ratio of MBB is 0.09 percentage points lower than MTUM’s (0.06% vs. 0.15%).

Fund Composition


MBB - Holdings

MBB Bond SectorsWeight
Below B0.0%
US Government0.0%

MBB’s Top Bond Sectors are ratings of AAA, Others, Below B, B, and BB at 99.51%, 0.49%, 0.0%, 0.0%, and 0.0%. The fund is less weighted towards BBB (0.0%), A (0.0%), and AA (0.0%) rated bonds.

MTUM - Holdings

MTUM HoldingsWeight
Tesla Inc5.63%
The Walt Disney Co4.39%
JPMorgan Chase & Co4.35%
Berkshire Hathaway Inc Class B4.34%
Bank of America Corp3.81%
PayPal Holdings Inc3.76%
Wells Fargo & Co3.05%
Applied Materials Inc3.05%
Moderna Inc2.89%
Alphabet Inc Class C2.84%

MTUM’s Top Holdings are Tesla Inc, The Walt Disney Co, JPMorgan Chase & Co, Berkshire Hathaway Inc Class B, and Bank of America Corp at 5.63%, 4.39%, 4.35%, 4.34%, and 3.81%.

PayPal Holdings Inc (3.76%), Wells Fargo & Co (3.05%), and Applied Materials Inc (3.05%) have a slightly smaller but still significant weight. Moderna Inc and Alphabet Inc Class C are also represented in the MTUM’s holdings at 2.89% and 2.84%.

Risk Analysis

Mean Return0.20
Std. Deviation2.120
Sharpe Ratio0.870
Treynor Ratio3.020

The iShares MBS ETF (MBB) has a R-squared of 74.38 with a Sharpe Ratio of 0.87 and a Beta of 0.6. Its Treynor Ratio is 3.02 while MBB’s Standard Deviation is 2.12. Furthermore, the fund has a Mean Return of 0.2 and a Alpha of 0.14.

The iShares MSCI USA Momentum Factor ETF (MTUM) has a Beta of 0 with a Alpha of 0 and a Standard Deviation of 0. Its Sharpe Ratio is 0 while MTUM’s Mean Return is 0. Furthermore, the fund has a Treynor Ratio of 0 and a R-squared of 0.

MBB’s Mean Return is 0.20 points higher than that of MTUM and its R-squared is 74.38 points higher. With a Standard Deviation of 2.12, MBB is slightly more volatile than MTUM. The Alpha and Beta of MBB are 0.14 points higher and 0.60 points higher than MTUM’s Alpha and Beta.


Annual Returns

MBB vs. MTUM - Annual Returns


MBB had its best year in 2019 with an annual return of 6.27%. MBB’s worst year over the past decade yielded -1.92% and occurred in 2013. In most years the iShares MBS ETF provided moderate returns such as in 2012, 2017, and 2020 where annual returns amounted to 2.23%, 2.37%, and 4.03% respectively.

The year 2017 was the strongest year for MTUM, returning 37.6% on an annual basis. The poorest year for MTUM in the last ten years was 2018, with a yield of -1.77%. Most years the iShares MSCI USA Momentum Factor ETF has given investors modest returns, such as in 2010, 2016, and 2015, when gains were 0.0%, 4.89%, and 9.12% respectively.

Portfolio Growth

MBB vs. MTUM - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR

A $10,000 investment in MBB would have resulted in a final balance of $12,423. This is a profit of $2,423 over 7 years and amounts to a compound annual growth rate (CAGR) of 3.08%.

With a $10,000 investment in MTUM, the end total would have been $29,301. This equates to a $19,301 profit over 7 years and a compound annual growth rate (CAGR) of 17.37%.

MBB’s CAGR is 14.29 percentage points lower than that of MTUM and as a result, would have yielded $16,878 less on a $10,000 investment. Thus, MBB performed worse than MTUM by 14.29% annually.

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