AGZ vs. SMBS
AGZ (iShares Agency Bond ETF) and SMBS (Schwab Mortgage-Backed Securities ETF) are both exchange-traded funds - AGZ is a Government Bonds fund tracking the Bloomberg U.S. Agency Bond Index (USD), while SMBS is a Mortgage Backed Securities fund tracking the Bloomberg US MBS Float Adjusted Total Return Index. Both are passively managed. Over the past year, AGZ returned 3.95% vs 6.78% for SMBS. A 0.77 correlation means they provide meaningful diversification when combined. AGZ charges 0.20%/yr vs 0.03%/yr for SMBS.
Performance
AGZ vs. SMBS - Performance Comparison
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Returns By Period
In the year-to-date period, AGZ achieves a 0.16% return, which is significantly lower than SMBS's 0.70% return.
AGZ
- 1D
- -0.13%
- 1M
- -0.03%
- YTD
- 0.16%
- 6M
- 0.29%
- 1Y
- 3.95%
- 3Y*
- 4.10%
- 5Y*
- 1.15%
- 10Y*
- 1.83%
SMBS
- 1D
- -0.24%
- 1M
- 0.33%
- YTD
- 0.70%
- 6M
- 0.82%
- 1Y
- 6.78%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
AGZ vs. SMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
AGZ iShares Agency Bond ETF | 0.16% | 6.05% | 0.09% |
SMBS Schwab Mortgage-Backed Securities ETF | 0.70% | 8.15% | -0.07% |
Correlation
The correlation between AGZ and SMBS is 0.74, 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 | 0.74 |
Correlation (All Time) Calculated using the full available price history since Nov 20, 2024 | 0.77 |
The correlation between AGZ and SMBS has been stable across timeframes, ranging from 0.74 to 0.77 - a consistent structural relationship.
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Return for Risk
AGZ vs. SMBS — Risk / Return Rank
AGZ
SMBS
AGZ vs. SMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Agency Bond ETF (AGZ) and Schwab Mortgage-Backed Securities ETF (SMBS). 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.
| AGZ | SMBS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.11 | ||
| Sortino ratioReturn per unit of downside risk | -0.09 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.30 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.93 | 2.41 | +0.53 |
| Martin ratioReturn relative to average drawdown | 9.76 | 8.21 | +1.55 |
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
| AGZ | SMBS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.54 | 1.64 | -0.11 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.33 | — | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.60 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.68 | 1.18 | -0.50 |
Drawdowns
AGZ vs. SMBS - Drawdown Comparison
The maximum AGZ drawdown since its inception was -11.01%, which is greater than SMBS's maximum drawdown of -3.20%. Use the drawdown chart below to compare losses from any high point for AGZ and SMBS.
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Drawdown Indicators
| AGZ | SMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -11.01% | -3.20% | -7.81% |
Max Drawdown (1Y)Largest decline over 1 year | -1.35% | -2.83% | +1.48% |
Max Drawdown (3Y)Largest decline over 3 years | -1.85% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -10.66% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -11.01% | — | — |
Current DrawdownCurrent decline from peak | -0.78% | -1.33% | +0.55% |
Average DrawdownAverage peak-to-trough decline | -1.61% | -0.84% | -0.77% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.41% | 0.83% | -0.42% |
Volatility
AGZ vs. SMBS - Volatility Comparison
The current volatility for iShares Agency Bond ETF (AGZ) is 0.76%, while Schwab Mortgage-Backed Securities ETF (SMBS) has a volatility of 1.55%. This indicates that AGZ experiences smaller price fluctuations and is considered to be less risky than SMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AGZ | SMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.76% | 1.55% | -0.79% |
Volatility (6M)Calculated over the trailing 6-month period | 1.93% | 3.03% | -1.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.58% | 4.15% | -1.57% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.54% | 4.86% | -1.32% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.03% | 4.86% | -1.83% |
AGZ vs. SMBS - Expense Ratio Comparison
AGZ has a 0.20% expense ratio, which is higher than SMBS's 0.03% 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
AGZ vs. SMBS - Dividend Comparison
AGZ's dividend yield for the trailing twelve months is around 3.73%, less than SMBS's 5.17% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGZ iShares Agency Bond ETF | 3.73% | 3.75% | 3.48% | 3.14% | 1.56% | 0.96% | 2.25% | 2.32% | 2.15% | 1.58% | 1.52% | 1.30% |
SMBS Schwab Mortgage-Backed Securities ETF | 5.17% | 4.83% | 0.50% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
AGZ and SMBS have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SMBS has higher volatility (1.55%) compared to AGZ (0.76%). In terms of maximum drawdown, AGZ dropped -11.01% vs SMBS's -3.20%.
On 1-year performance, SMBS leads with 6.78% vs 3.95% for AGZ. On fees, SMBS is cheaper at 0.03% per year. On volatility, AGZ has been the lower-risk option at 0.76%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, SMBS has performed better with a 6.78% return vs 3.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SMBS is cheaper with a 0.03% expense ratio, compared with 0.20% for AGZ.
SMBS has the higher dividend yield at 5.17%, compared with 3.73% for AGZ.
AGZ is categorized as Government Bonds, while SMBS is Mortgage Backed Securities. AGZ tracks Bloomberg U.S. Agency Bond Index (USD), while SMBS tracks Bloomberg US MBS Float Adjusted Total Return Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.20% for AGZ and 0.03% for SMBS.
SMBS currently has the higher Sharpe Ratio (1.64 vs 1.54), 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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