MGOV vs. SMBS

Last updated Jun 26, 2026

MGOV (First Trust Intermediate Government Opportunities ETF) and SMBS (Schwab Mortgage-Backed Securities ETF) are both exchange-traded funds - MGOV is a Government Bonds fund actively managed by First Trust, while SMBS is a Mortgage Backed Securities fund tracking the Bloomberg US MBS Float Adjusted Total Return Index. MGOV is actively managed, while SMBS is passively managed. Over the past year, MGOV returned 6.00% vs 5.91% for SMBS. Their correlation of 0.86 suggests significant overlap in exposure. MGOV charges 0.65%/yr vs 0.03%/yr for SMBS.

Performance

MGOV vs. SMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Intermediate Government Opportunities ETF (MGOV) 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, MGOV achieves a 1.31% return, which is significantly lower than SMBS's 1.60% return.

MGOV

• 1D: 0.07%
• 1M: 1.27%
• YTD: 1.31%
• 6M: 1.14%
• 1Y: 6.00%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMBS

• 1D: 0.31%
• 1M: 1.11%
• YTD: 1.60%
• 6M: 1.34%
• 1Y: 5.91%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

MGOV vs. SMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MGOV First Trust Intermediate Government Opportunities ETF	1.31%	8.54%	-0.14%
SMBS Schwab Mortgage-Backed Securities ETF	1.60%	8.15%	-0.16%

Correlation

The correlation between MGOV and SMBS is 0.82, 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	0.82
Correlation (All Time) Calculated using the full available price history since Nov 19, 2024	0.86

The correlation between MGOV and SMBS has been stable across timeframes, ranging from 0.82 to 0.86 - a consistent structural relationship.

Return for Risk

MGOV vs. SMBS — Risk / Return Rank

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

MGOV

MGOV Risk / Return Rank: 39
MGOV Sharpe Ratio Rank: 41
MGOV Sortino Ratio Rank: 43
MGOV Omega Ratio Rank: 38
MGOV Calmar Ratio Rank: 37
MGOV Martin Ratio Rank: 35

SMBS

SMBS Risk / Return Rank: 47
SMBS Sharpe Ratio Rank: 46
SMBS Sortino Ratio Rank: 48
SMBS Omega Ratio Rank: 45
SMBS Calmar Ratio Rank: 48
SMBS Martin Ratio Rank: 46

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.

MGOV vs. SMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Intermediate Government Opportunities ETF (MGOV) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MGOV	SMBS	Difference
Sharpe ratio: Return per unit of total volatility	1.33	1.44	-0.10
Sortino ratio: Return per unit of downside risk	1.99	2.11	-0.12
Omega ratio: Gain probability vs. loss probability	1.23	1.26	-0.02
Calmar ratio: Return relative to maximum drawdown	1.71	2.10	-0.39
Martin ratio: Return relative to average drawdown	4.82	6.73	-1.91

MGOV vs. SMBS - Sharpe Ratio Comparison

The current MGOV Sharpe Ratio is 1.33, which is comparable to the SMBS Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of MGOV 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.

Drawdowns

MGOV vs. SMBS - Drawdown Comparison

The maximum MGOV drawdown since its inception was -6.11%, which is greater than SMBS's maximum drawdown of -3.20%. Use the drawdown chart below to compare losses from any high point for MGOV and SMBS.

Drawdown Indicators

	MGOV	SMBS	Difference
Max Drawdown Largest peak-to-trough decline	-6.11%	-3.20%	-2.91%
Max Drawdown (1Y) Largest decline over 1 year	-3.53%	-2.83%	-0.70%
Current Drawdown Current decline from peak	-1.28%	-0.46%	-0.82%
Average Drawdown Average peak-to-trough decline	-1.63%	-0.85%	-0.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.25%	0.88%	+0.37%

Volatility

MGOV vs. SMBS - Volatility Comparison

The current volatility for First Trust Intermediate Government Opportunities ETF (MGOV) is 1.14%, while Schwab Mortgage-Backed Securities ETF (SMBS) has a volatility of 1.32%. This indicates that MGOV 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

	MGOV	SMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.14%	1.32%	-0.18%
Volatility (6M) Calculated over the trailing 6-month period	3.29%	3.18%	+0.11%
Volatility (1Y) Calculated over the trailing 1-year period	4.51%	4.12%	+0.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.92%	4.86%	+1.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.92%	4.86%	+1.06%

MGOV vs. SMBS - Expense Ratio Comparison

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

Dividends

MGOV vs. SMBS - Dividend Comparison

MGOV's dividend yield for the trailing twelve months is around 5.31%, more than SMBS's 5.12% yield.

Position	TTM	2025	2024	2023
MGOV First Trust Intermediate Government Opportunities ETF	5.31%	4.95%	5.05%	1.47%
SMBS Schwab Mortgage-Backed Securities ETF	5.12%	4.83%	0.50%	0.00%

Frequently Asked Questions

Can I hold both MGOV and SMBS in my portfolio?

MGOV and SMBS have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MGOV or SMBS?

SMBS has higher volatility (1.32%) compared to MGOV (1.14%). In terms of maximum drawdown, MGOV dropped -6.11% vs SMBS's -3.20%.

Which ETF is better, MGOV or SMBS?

On 1-year performance, MGOV leads with 6.00% vs 5.91% for SMBS. On fees, SMBS is cheaper at 0.03% per year. On volatility, MGOV has been the lower-risk option at 1.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MGOV or SMBS?

Over the 1-year period, MGOV has performed better with a 6.00% return vs 5.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MGOV or SMBS?

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

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

MGOV has the higher dividend yield at 5.31%, compared with 5.12% for SMBS.

What is the main difference between MGOV and SMBS?

MGOV is categorized as Government Bonds, while SMBS is Mortgage Backed Securities. They also come from different issuers: First Trust and Charles Schwab. Their fees differ too: 0.65% for MGOV and 0.03% for SMBS.

Which has better risk-adjusted returns?

SMBS currently has the higher Sharpe Ratio (1.44 vs 1.33), 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.