ITB vs. SMB
ITB (iShares U.S. Home Construction ETF) and SMB (VanEck Short Muni ETF) are both exchange-traded funds - ITB is a Building & Construction fund tracking the Dow Jones U.S. Select Home Construction Index, while SMB is a Municipal Bonds fund tracking the Bloomberg AMT-Free Short Continuous. Both are passively managed. Over the past 10 years, ITB returned 13.64%/yr vs 1.51%/yr for SMB. At a 0.04 correlation, their price movements are largely independent. ITB charges 0.42%/yr vs 0.20%/yr for SMB.
Performance
ITB vs. SMB - Performance Comparison
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Returns By Period
In the year-to-date period, ITB achieves a -3.80% return, which is significantly lower than SMB's 0.55% return. Over the past 10 years, ITB has outperformed SMB with an annualized return of 13.64%, while SMB has yielded a comparatively lower 1.51% annualized return.
ITB
- 1D
- -0.85%
- 1M
- 1.29%
- YTD
- -3.80%
- 6M
- -12.12%
- 1Y
- 4.04%
- 3Y*
- 7.27%
- 5Y*
- 6.42%
- 10Y*
- 13.64%
SMB
- 1D
- 0.00%
- 1M
- 0.53%
- YTD
- 0.55%
- 6M
- 1.25%
- 1Y
- 3.81%
- 3Y*
- 3.62%
- 5Y*
- 1.17%
- 10Y*
- 1.51%
ITB vs. SMB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | -3.80% | -5.26% | 2.06% | 68.91% | -26.26% | 49.25% | 26.42% | 48.70% | -30.92% | 59.65% |
SMB VanEck Short Muni ETF | 0.55% | 4.61% | 2.41% | 3.14% | -4.50% | 0.12% | 3.30% | 4.54% | 1.86% | 1.16% |
Correlation
The correlation between ITB and SMB is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.27 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.24 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.16 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.10 |
Correlation (All Time) Calculated using the full available price history since Feb 29, 2008 | 0.04 |
Over the past year, ITB and SMB have become more correlated (0.27) than their long-term average of 0.04, meaning their price movements have been converging.
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Return for Risk
ITB vs. SMB — Risk / Return Rank
ITB
SMB
ITB vs. SMB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Home Construction ETF (ITB) and VanEck Short Muni ETF (SMB). 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.
| ITB | SMB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.20 | ||
| Sortino ratioReturn per unit of downside risk | -2.98 | ||
| Omega ratioGain probability vs. loss probability | 1.05 | 1.46 | -0.42 |
| Calmar ratioReturn relative to maximum drawdown | 0.16 | 3.27 | -3.11 |
| Martin ratioReturn relative to average drawdown | 0.31 | 9.20 | -8.89 |
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
| ITB | SMB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.14 | 2.33 | -2.20 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.22 | 0.48 | -0.25 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.46 | 0.36 | +0.10 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.11 | 0.42 | -0.31 |
Drawdowns
ITB vs. SMB - Drawdown Comparison
The maximum ITB drawdown since its inception was -86.53%, which is greater than SMB's maximum drawdown of -12.64%. Use the drawdown chart below to compare losses from any high point for ITB and SMB.
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Drawdown Indicators
| ITB | SMB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -86.53% | -12.64% | -73.89% |
Max Drawdown (1Y)Largest decline over 1 year | -26.04% | -1.17% | -24.87% |
Max Drawdown (3Y)Largest decline over 3 years | -33.35% | -1.80% | -31.55% |
Max Drawdown (5Y)Largest decline over 5 years | -40.55% | -7.48% | -33.07% |
Max Drawdown (10Y)Largest decline over 10 years | -52.10% | -12.64% | -39.46% |
Current DrawdownCurrent decline from peak | -27.07% | -0.25% | -26.82% |
Average DrawdownAverage peak-to-trough decline | -37.10% | -1.14% | -35.96% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 13.09% | 0.41% | +12.68% |
Volatility
ITB vs. SMB - Volatility Comparison
iShares U.S. Home Construction ETF (ITB) has a higher volatility of 8.17% compared to VanEck Short Muni ETF (SMB) at 0.42%. This indicates that ITB's price experiences larger fluctuations and is considered to be riskier than SMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ITB | SMB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.17% | 0.42% | +7.75% |
Volatility (6M)Calculated over the trailing 6-month period | 20.42% | 1.20% | +19.22% |
Volatility (1Y)Calculated over the trailing 1-year period | 29.47% | 1.64% | +27.83% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 29.19% | 2.48% | +26.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 30.00% | 4.26% | +25.74% |
ITB vs. SMB - Expense Ratio Comparison
ITB has a 0.42% expense ratio, which is higher than SMB's 0.20% expense ratio.
Dividends
ITB vs. SMB - Dividend Comparison
ITB's dividend yield for the trailing twelve months is around 1.23%, less than SMB's 2.70% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | 1.23% | 1.67% | 0.46% | 0.48% | 0.86% | 0.37% | 0.46% | 0.50% | 0.63% | 0.28% | 0.43% | 0.34% |
SMB VanEck Short Muni ETF | 2.70% | 2.63% | 2.38% | 1.83% | 1.32% | 1.24% | 1.50% | 1.58% | 1.49% | 1.23% | 1.12% | 1.13% |
Frequently Asked Questions
ITB and SMB have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ITB has higher volatility (8.17%) compared to SMB (0.42%). In terms of maximum drawdown, ITB dropped -86.53% vs SMB's -12.64%.
On 10-year performance, ITB leads with 13.64% vs 1.51% for SMB. On fees, SMB is cheaper at 0.20% per year. On volatility, SMB has been the lower-risk option at 0.42%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, ITB has performed better with a 13.64% return vs 1.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SMB is cheaper with a 0.20% expense ratio, compared with 0.42% for ITB.
SMB has the higher dividend yield at 2.70%, compared with 1.23% for ITB.
ITB is categorized as Building & Construction, while SMB is Municipal Bonds. ITB tracks Dow Jones U.S. Select Home Construction Index, while SMB tracks Bloomberg AMT-Free Short Continuous. They also come from different issuers: iShares and VanEck. Their fees differ too: 0.42% for ITB and 0.20% for SMB.
SMB currently has the higher Sharpe Ratio (2.33 vs 0.14), 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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