ETF Evaluator:
FlexShares Disciplined Duration MBS ETF (MBSD)
Follow This ETF
(as of Jul 31)
Best Performing in Government Mortgage-Backed Bond Over the Last Year
| 5.8% | PIMCO Mortgage-Backed Securities Act ETF (PMBS) |
| 5.7% | iShares Mortgage-Backed Secs Act ETF (MBBA) |
| 5.5% | Janus Henderson Mortgage-Backed Sec ETF (JMBS) |
| 5.5% | Academy Veteran Bond ETF (VETZ) |
| 5.4% | Regan Floating Rate MBS ETF (MBSF) |
Risk
Index
Risk
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ETF Details
FlexShares Disciplined Duration MBS ETF Overview
FlexShares Disciplined Duration MBS ETF (MBSD) is a passively managed Taxable Bond Government Mortgage-Backed Bond exchange-traded fund (ETF). Flexshares Trust launched the ETF in 2014.
The investment seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the ICE ® BofA ® Constrained Duration U.S. Mortgage Backed Securities Index.
The underlying index reflects the performance of a selection of investment-grade U.S. agency residential mortgage backed pass-through securities. The fund generally will invest under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the securities of the underlying index and in "TBA Transactions" that represent securities in the underlying index.
About FlexShares Disciplined Duration MBS ETF (MBSD)
There are 4 members of the management team with an average tenure of 5.46 years: David Alongi (2021), Michael Chico (2020), Dmitri Artemiev (2025) and Kevin O'Shaughnessy (2016). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg US MBS TR USD index with a weighting of 100%. FlexShares Disciplined Duration MBS ETF has 467 securities in its portfolio. The top 10 holdings constitute 16.6% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
FlexShares Disciplined Duration MBS ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. FlexShares Disciplined Duration MBS ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 85.4% (85.4% domestic bond, 0.0% foreign bond and 0.0% convertible bond). FlexShares Disciplined Duration MBS ETF has 14.6% of the portfolio in cash.
Assets Under Management
The fund has $94 million in total assets, which is below the $5 billion average for the Government Mortgage-Backed Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
MBSD Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The FlexShares Disciplined Duration MBS ETF expense ratio is below average compared to funds in the Government Mortgage-Backed Bond category. FlexShares Disciplined Duration MBS ETF has an expense ratio of 0.20%, which is 19% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. FlexShares Disciplined Duration MBS ETF has a portfolio turnover rate of 38%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 281% for the Government Mortgage-Backed Bond category.
Recently, in the month of June 2026, FlexShares Disciplined Duration MBS ETF returned 0.1%, which earned it a grade of F, as the Government Mortgage-Backed Bond category had an average return of 0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
FlexShares Disciplined Duration MBS ETF has a trailing yield of 4.19%, which is below the 4.61% category average.
The fund normally distributes its income monthly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
FlexShares Disciplined Duration MBS ETF Grades
Year to date, the ETF has returned 0.6%, 0.6 percentage points worse than the category, which translates into a grade of F. The fund has returned 3.9% over the past year (grade of F), 4.4% over the past three years (grade of F) and 0.7% per year over the past five years (grade of B) and 1.3% per year over the past 10 years (grade of B).
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MBSD Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| MBSD Return (NAV) | 0.1% | 0.4% | 3.9% | 4.4% | 0.7% | 1.3% |
| MBSD Return (Price) | 0.0% | 0.5% | 3.8% | 4.4% | 0.7% | 1.3% |
| NAV +/- Price Return | 0.066% | -0.067% | 0.044% | 0.002% | -0.033% | 0.004% |
| Government Mortgage-Backed Bond Avg | 0.3% | 0.7% | 5.2% | 4.6% | 0.6% | 1.4% |
| MBSD Grade (NAV) | F | F | F | F | B | B |
| +/- Category (NAV) | -0.2% | -0.3% | -1.3% | -0.3% | 0.1% | -0.1% |
| MBSD Tax-Cost Ratio | na | na | 1.7% | 1.6% | 1.4% | 1.3% |
MBSD Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| MBSD Return (NAV) | 0.6% | 7.2% | 2.2% | 4.6% | -9.6% | -1.2% | 5.1% | 6.0% | 0.1% | 0.9% | 1.1% |
| MBSD Return (Price) | 0.7% | 7.1% | 2.3% | 4.5% | -9.5% | -1.4% | 5.4% | 6.0% | 0.3% | 0.6% | 0.3% |
| NAV +/- Price Ret | 0.165% | -0.007% | 0.033% | -0.029% | -0.007% | 0.180% | 0.058% | 1.3% | 309.5% | -38.8% | -76.1% |
| Government Mortgage-Backed Bond Avg | 1.2% | 8.1% | 1.7% | 5.1% | -11.6% | -1.0% | 4.5% | 6.3% | 0.7% | 2.2% | 1.5% |
| MBSD Grade (NAV) | F | F | A | F | A | C | B | F | F | F | F |
| +/- Category | -0.6% | -0.9% | 0.5% | -0.5% | 2.1% | -0.2% | 0.6% | -0.3% | -0.7% | -1.2% | -0.4% |
| Risk Measures | |
| Beta: | 0.74 |
| R-Squared: | 98% |
| Standard Deviation: | 4.2% |
| Category Risk Index: | 0.69 |
| Category Risk Rating: | Low |
| Total Risk Index: | 0.34 |
| Total Risk Rating: | Low |
| Portfolio Characteristics | |
| Yield: | 4.2% |
| Total Assets: | $ 95 Mil |
| Share Class Assets: | $ 95 Mil |
| Turnover: | 38.0% |
| Expense Ratio: | 0.20% |
| Index Fund: | Yes |
| Index Tracked: | Bloomberg US Agg Bond TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 10.1 years | |||
| Average Tenure: 5.5 years | |||
| Managers (Year): O'Shaughnessy Kevin (2016), Chico Michael (2020), Alongi David (2021), Artemiev Dmitri (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 467 |
| % in Top 10 Holdings: | 16.6% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 85.4% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 14.6% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Flexshares Trust |
| Phone Number: | 855-353-9383 |
| Website: | www.flexshares.com |
| Inception Date: | September 3, 2014 |
Expenses and Fees
| Expense Ratio (%): | 0.20% (Rating: Below Avg) |
| Category Average Expense Ratio (%): | 0.25% |
