BBIB vs. SMBS

Last updated Jun 6, 2026

BBIB (JPMorgan BetaBuilders U.S. Treasury Bond 3-10 Year ETF) and SMBS (Schwab Mortgage-Backed Securities ETF) are both exchange-traded funds - BBIB is a Government Bonds fund tracking the ICE BofA US Treasury Bond (3-10 Y), 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, BBIB returned 3.01% vs 5.87% for SMBS. Their correlation of 0.89 suggests significant overlap in exposure. BBIB charges 0.04%/yr vs 0.03%/yr for SMBS.

Performance

BBIB vs. SMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in JPMorgan BetaBuilders U.S. Treasury Bond 3-10 Year ETF (BBIB) and Schwab Mortgage-Backed Securities ETF (SMBS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BBIB achieves a -0.73% return, which is significantly lower than SMBS's 0.24% return.

BBIB

• 1D: -0.44%
• 1M: -0.90%
• YTD: -0.73%
• 6M: -0.53%
• 1Y: 3.01%
• 3Y*: 3.31%
• 5Y*: —
• 10Y*: —

SMBS

• 1D: -0.47%
• 1M: -0.75%
• YTD: 0.24%
• 6M: 0.71%
• 1Y: 5.87%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BBIB vs. SMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BBIB JPMorgan BetaBuilders U.S. Treasury Bond 3-10 Year ETF	-0.73%	7.44%	-0.23%
SMBS Schwab Mortgage-Backed Securities ETF	0.24%	8.15%	-0.07%

Correlation

The correlation between BBIB and SMBS is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (All Time) Calculated using the full available price history since Nov 20, 2024	0.89

The correlation between BBIB and SMBS has been stable across timeframes, ranging from 0.89 to 0.89 - a consistent structural relationship.

Return for Risk

BBIB vs. SMBS — Risk / Return Rank

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

BBIB

BBIB Risk / Return Rank: 25
BBIB Sharpe Ratio Rank: 27
BBIB Sortino Ratio Rank: 26
BBIB Omega Ratio Rank: 24
BBIB Calmar Ratio Rank: 26
BBIB Martin Ratio Rank: 25

SMBS

SMBS Risk / Return Rank: 43
SMBS Sharpe Ratio Rank: 42
SMBS Sortino Ratio Rank: 44
SMBS Omega Ratio Rank: 41
SMBS Calmar Ratio Rank: 45
SMBS Martin Ratio Rank: 45

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.

BBIB vs. SMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for JPMorgan BetaBuilders U.S. Treasury Bond 3-10 Year ETF (BBIB) 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.

	BBIB	SMBS	Difference
Sharpe ratio: Return per unit of total volatility	0.89	1.43	-0.54
Sortino ratio: Return per unit of downside risk	1.33	2.08	-0.75
Omega ratio: Gain probability vs. loss probability	1.15	1.26	-0.10
Calmar ratio: Return relative to maximum drawdown	1.08	2.09	-1.01
Martin ratio: Return relative to average drawdown	3.17	7.03	-3.86
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BBIB vs. SMBS - Sharpe Ratio Comparison

The current BBIB Sharpe Ratio is 0.89, which is lower than the SMBS Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of BBIB and SMBS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BBIB	SMBS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.89	1.43	-0.54
Sharpe Ratio (All Time) Calculated using the full available price history	0.62	1.11	-0.49

Drawdowns

BBIB vs. SMBS - Drawdown Comparison

The maximum BBIB drawdown since its inception was -6.36%, which is greater than SMBS's maximum drawdown of -3.20%. Use the drawdown chart below to compare losses from any high point for BBIB and SMBS.

Drawdown Indicators

	BBIB	SMBS	Difference
Max Drawdown Largest peak-to-trough decline	-6.36%	-3.20%	-3.16%
Max Drawdown (1Y) Largest decline over 1 year	-2.80%	-2.83%	+0.03%
Max Drawdown (3Y) Largest decline over 3 years	-4.31%	—	—
Current Drawdown Current decline from peak	-2.35%	-1.78%	-0.57%
Average Drawdown Average peak-to-trough decline	-1.68%	-0.84%	-0.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	0.84%	+0.11%

Volatility

BBIB vs. SMBS - Volatility Comparison

The current volatility for JPMorgan BetaBuilders U.S. Treasury Bond 3-10 Year ETF (BBIB) is 1.10%, while Schwab Mortgage-Backed Securities ETF (SMBS) has a volatility of 1.53%. This indicates that BBIB 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.

Volatility by Period

	BBIB	SMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.10%	1.53%	-0.43%
Volatility (6M) Calculated over the trailing 6-month period	2.40%	3.07%	-0.67%
Volatility (1Y) Calculated over the trailing 1-year period	3.40%	4.13%	-0.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.75%	4.86%	-0.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.75%	4.86%	-0.11%

BBIB vs. SMBS - Expense Ratio Comparison

BBIB has a 0.04% 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

BBIB vs. SMBS - Dividend Comparison

BBIB's dividend yield for the trailing twelve months is around 3.93%, less than SMBS's 5.19% yield.

Position	TTM	2025	2024	2023
BBIB JPMorgan BetaBuilders U.S. Treasury Bond 3-10 Year ETF	3.93%	3.95%	3.76%	2.69%
SMBS Schwab Mortgage-Backed Securities ETF	5.19%	4.83%	0.50%	0.00%

Frequently Asked Questions

Can I hold both BBIB and SMBS in my portfolio?

BBIB and SMBS have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BBIB or SMBS?

SMBS has higher volatility (1.53%) compared to BBIB (1.10%). In terms of maximum drawdown, BBIB dropped -6.36% vs SMBS's -3.20%.

Which ETF is better, BBIB or SMBS?

On 1-year performance, SMBS leads with 5.87% vs 3.01% for BBIB. On fees, SMBS is cheaper at 0.03% per year. On volatility, BBIB has been the lower-risk option at 1.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BBIB or SMBS?

Over the 1-year period, SMBS has performed better with a 5.87% return vs 3.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BBIB or SMBS?

SMBS is cheaper with a 0.03% expense ratio, compared with 0.04% for BBIB.

Which ETF pays a higher dividend yield, BBIB or SMBS?

SMBS has the higher dividend yield at 5.19%, compared with 3.93% for BBIB.

What is the main difference between BBIB and SMBS?

BBIB is categorized as Government Bonds, while SMBS is Mortgage Backed Securities. BBIB tracks ICE BofA US Treasury Bond (3-10 Y), while SMBS tracks Bloomberg US MBS Float Adjusted Total Return Index. They also come from different issuers: JPMorgan and Charles Schwab. Their fees differ too: 0.04% for BBIB and 0.03% for SMBS.

Which has better risk-adjusted returns?

SMBS currently has the higher Sharpe Ratio (1.43 vs 0.89), 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.