CLOI vs. SMBS

Last updated Jun 4, 2026

CLOI (VanEck CLO ETF) and SMBS (Schwab Mortgage-Backed Securities ETF) are both exchange-traded funds - CLOI is a CLO fund actively managed by VanEck, while SMBS is a Mortgage Backed Securities fund tracking the Bloomberg US MBS Float Adjusted Total Return Index. CLOI is actively managed, while SMBS is passively managed. Over the past year, CLOI returned 5.56% vs 6.78% for SMBS. At a 0.07 correlation, their price movements are largely independent. CLOI charges 0.40%/yr vs 0.03%/yr for SMBS.

Performance

CLOI vs. SMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck CLO ETF (CLOI) 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, CLOI achieves a 2.06% return, which is significantly higher than SMBS's 0.70% return.

CLOI

• 1D: 0.00%
• 1M: 0.61%
• YTD: 2.06%
• 6M: 2.58%
• 1Y: 5.56%
• 3Y*: 7.11%
• 5Y*: —
• 10Y*: —

SMBS

• 1D: -0.24%
• 1M: 0.33%
• YTD: 0.70%
• 6M: 0.82%
• 1Y: 6.78%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

CLOI vs. SMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
CLOI VanEck CLO ETF	2.06%	5.84%	0.75%
SMBS Schwab Mortgage-Backed Securities ETF	0.70%	8.15%	-0.07%

Correlation

The correlation between CLOI and SMBS is 0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.07
Correlation (All Time) Calculated using the full available price history since Nov 20, 2024	0.07

Return for Risk

CLOI vs. SMBS — Risk / Return Rank

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

CLOI

CLOI Risk / Return Rank: 97
CLOI Sharpe Ratio Rank: 97
CLOI Sortino Ratio Rank: 98
CLOI Omega Ratio Rank: 98
CLOI Calmar Ratio Rank: 96
CLOI Martin Ratio Rank: 97

SMBS

SMBS Risk / Return Rank: 48
SMBS Sharpe Ratio Rank: 47
SMBS Sortino Ratio Rank: 49
SMBS Omega Ratio Rank: 47
SMBS Calmar Ratio Rank: 49
SMBS Martin Ratio Rank: 49

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.

CLOI vs. SMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck CLO ETF (CLOI) 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.

	CLOI	SMBS	Difference
Sharpe ratio Return per unit of total volatility	4.72	1.64	+3.07
Sortino ratio Return per unit of downside risk	7.43	2.42	+5.01
Omega ratio Gain probability vs. loss probability	2.16	1.30	+0.86
Calmar ratio Return relative to maximum drawdown	8.95	2.41	+6.54
Martin ratio Return relative to average drawdown	42.16	8.21	+33.95
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CLOI vs. SMBS - Sharpe Ratio Comparison

The current CLOI Sharpe Ratio is 4.72, which is higher than the SMBS Sharpe Ratio of 1.64. The chart below compares the historical Sharpe Ratios of CLOI 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

	CLOI	SMBS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.72	1.64	+3.07
Sharpe Ratio (All Time) Calculated using the full available price history	2.77	1.18	+1.59

Drawdowns

CLOI vs. SMBS - Drawdown Comparison

The maximum CLOI drawdown since its inception was -3.25%, roughly equal to the maximum SMBS drawdown of -3.20%. Use the drawdown chart below to compare losses from any high point for CLOI and SMBS.

Drawdown Indicators

	CLOI	SMBS	Difference
Max Drawdown Largest peak-to-trough decline	-3.25%	-3.20%	-0.05%
Max Drawdown (1Y) Largest decline over 1 year	-0.62%	-2.83%	+2.21%
Max Drawdown (3Y) Largest decline over 3 years	-3.25%	—	—
Current Drawdown Current decline from peak	0.00%	-1.33%	+1.33%
Average Drawdown Average peak-to-trough decline	-0.19%	-0.84%	+0.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.13%	0.83%	-0.70%

Volatility

CLOI vs. SMBS - Volatility Comparison

The current volatility for VanEck CLO ETF (CLOI) is 0.14%, while Schwab Mortgage-Backed Securities ETF (SMBS) has a volatility of 1.55%. This indicates that CLOI 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

	CLOI	SMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.14%	1.55%	-1.41%
Volatility (6M) Calculated over the trailing 6-month period	0.67%	3.03%	-2.36%
Volatility (1Y) Calculated over the trailing 1-year period	1.19%	4.15%	-2.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.56%	4.86%	-2.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.56%	4.86%	-2.30%

CLOI vs. SMBS - Expense Ratio Comparison

CLOI has a 0.40% expense ratio, which is higher than SMBS's 0.03% expense ratio.

Dividends

CLOI vs. SMBS - Dividend Comparison

CLOI's dividend yield for the trailing twelve months is around 5.35%, more than SMBS's 5.17% yield.

Position	TTM	2025	2024	2023	2022
CLOI VanEck CLO ETF	5.35%	5.61%	6.71%	5.61%	2.23%
SMBS Schwab Mortgage-Backed Securities ETF	5.17%	4.83%	0.50%	0.00%	0.00%

Frequently Asked Questions

Can I hold both CLOI and SMBS in my portfolio?

CLOI and SMBS have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CLOI or SMBS?

SMBS has higher volatility (1.55%) compared to CLOI (0.14%). In terms of maximum drawdown, CLOI dropped -3.25% vs SMBS's -3.20%.

Which ETF is better, CLOI or SMBS?

On 1-year performance, SMBS leads with 6.78% vs 5.56% for CLOI. On fees, SMBS is cheaper at 0.03% per year. On volatility, CLOI has been the lower-risk option at 0.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CLOI or SMBS?

Over the 1-year period, SMBS has performed better with a 6.78% return vs 5.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CLOI or SMBS?

SMBS is cheaper with a 0.03% expense ratio, compared with 0.40% for CLOI.

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

CLOI has the higher dividend yield at 5.35%, compared with 5.17% for SMBS.

What is the main difference between CLOI and SMBS?

CLOI is categorized as CLO, while SMBS is Mortgage Backed Securities. They also come from different issuers: VanEck and Charles Schwab. Their fees differ too: 0.40% for CLOI and 0.03% for SMBS.

Which has better risk-adjusted returns?

CLOI currently has the higher Sharpe Ratio (4.72 vs 1.64), 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.