DEED vs. SMBS

Last updated Jun 4, 2026

DEED (First Trust TCW Securitized Plus ETF) and SMBS (Schwab Mortgage-Backed Securities ETF) are both Mortgage Backed Securities funds. DEED is actively managed, while SMBS is passively managed. Over the past year, DEED returned 6.52% vs 6.78% for SMBS. Their correlation of 0.85 suggests significant overlap in exposure. DEED charges 0.65%/yr vs 0.03%/yr for SMBS.

Performance

DEED vs. SMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust TCW Securitized Plus ETF (DEED) 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, DEED achieves a 0.32% return, which is significantly lower than SMBS's 0.70% return.

DEED

• 1D: -0.10%
• 1M: 0.21%
• YTD: 0.32%
• 6M: 0.49%
• 1Y: 6.52%
• 3Y*: 4.92%
• 5Y*: 0.21%
• 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)

DEED vs. SMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
DEED First Trust TCW Securitized Plus ETF	0.32%	8.91%	0.19%
SMBS Schwab Mortgage-Backed Securities ETF	0.70%	8.15%	-0.07%

Correlation

The correlation between DEED and SMBS is 0.85, 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	0.85
Correlation (All Time) Calculated using the full available price history since Nov 20, 2024	0.85

The correlation between DEED and SMBS has been stable across timeframes, ranging from 0.85 to 0.85 - a consistent structural relationship.

Return for Risk

DEED vs. SMBS — Risk / Return Rank

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

DEED

DEED Risk / Return Rank: 45
DEED Sharpe Ratio Rank: 48
DEED Sortino Ratio Rank: 49
DEED Omega Ratio Rank: 47
DEED Calmar Ratio Rank: 42
DEED Martin Ratio Rank: 37

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.

DEED vs. SMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust TCW Securitized Plus ETF (DEED) 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.

	DEED	SMBS	Difference
Sharpe ratio: Return per unit of total volatility	1.66	1.64	+0.02
Sortino ratio: Return per unit of downside risk	2.44	2.42	+0.02
Omega ratio: Gain probability vs. loss probability	1.30	1.30	0.00
Calmar ratio: Return relative to maximum drawdown	2.06	2.41	-0.35
Martin ratio: Return relative to average drawdown	5.79	8.21	-2.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DEED vs. SMBS - Sharpe Ratio Comparison

The current DEED Sharpe Ratio is 1.66, which is comparable to the SMBS Sharpe Ratio of 1.64. The chart below compares the historical Sharpe Ratios of DEED 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

	DEED	SMBS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.66	1.64	+0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.03	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.19	1.18	-0.99

Drawdowns

DEED vs. SMBS - Drawdown Comparison

The maximum DEED drawdown since its inception was -19.96%, which is greater than SMBS's maximum drawdown of -3.20%. Use the drawdown chart below to compare losses from any high point for DEED and SMBS.

Drawdown Indicators

	DEED	SMBS	Difference
Max Drawdown Largest peak-to-trough decline	-19.96%	-3.20%	-16.76%
Max Drawdown (1Y) Largest decline over 1 year	-3.18%	-2.83%	-0.35%
Max Drawdown (3Y) Largest decline over 3 years	-8.50%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-19.96%	—	—
Current Drawdown Current decline from peak	-2.05%	-1.33%	-0.72%
Average Drawdown Average peak-to-trough decline	-6.62%	-0.84%	-5.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.13%	0.83%	+0.30%

Volatility

DEED vs. SMBS - Volatility Comparison

The current volatility for First Trust TCW Securitized Plus ETF (DEED) is 1.10%, while Schwab Mortgage-Backed Securities ETF (SMBS) has a volatility of 1.55%. This indicates that DEED 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

	DEED	SMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.10%	1.55%	-0.45%
Volatility (6M) Calculated over the trailing 6-month period	2.87%	3.03%	-0.16%
Volatility (1Y) Calculated over the trailing 1-year period	3.94%	4.15%	-0.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.54%	4.86%	+1.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.97%	4.86%	+1.11%

DEED vs. SMBS - Expense Ratio Comparison

DEED has a 0.65% expense ratio, which is higher than SMBS's 0.03% expense ratio.

Dividends

DEED vs. SMBS - Dividend Comparison

DEED's dividend yield for the trailing twelve months is around 4.28%, less than SMBS's 5.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
DEED First Trust TCW Securitized Plus ETF	4.28%	4.10%	5.73%	5.59%	2.43%	1.93%	1.60%
SMBS Schwab Mortgage-Backed Securities ETF	5.17%	4.83%	0.50%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DEED and SMBS in my portfolio?

DEED and SMBS have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DEED or SMBS?

SMBS has higher volatility (1.55%) compared to DEED (1.10%). In terms of maximum drawdown, DEED dropped -19.96% vs SMBS's -3.20%.

Which ETF is better, DEED or SMBS?

On 1-year performance, SMBS leads with 6.78% vs 6.52% for DEED. On fees, SMBS is cheaper at 0.03% per year. On volatility, DEED 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, DEED or SMBS?

Over the 1-year period, SMBS has performed better with a 6.78% return vs 6.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DEED or SMBS?

SMBS is cheaper with a 0.03% expense ratio, compared with 0.65% for DEED.

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

SMBS has the higher dividend yield at 5.17%, compared with 4.28% for DEED.

What is the main difference between DEED and SMBS?

They also come from different issuers: First Trust and Charles Schwab. Their fees differ too: 0.65% for DEED and 0.03% for SMBS.

Which has better risk-adjusted returns?

DEED currently has the higher Sharpe Ratio (1.66 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.