MTGP vs. SMBS

Last updated Aug 2, 2026

MTGP (WisdomTree Mortgage Plus Bond Fund) and SMBS (Schwab Mortgage-Backed Securities ETF) are both Mortgage Backed Securities funds. MTGP is actively managed, while SMBS is passively managed. Over the past year, MTGP returned 3.04% vs 3.52% for SMBS. Their correlation of 0.82 means they have usually moved in the same direction. MTGP charges 0.45%/yr vs 0.03%/yr for SMBS.

Performance

MTGP vs. SMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Mortgage Plus Bond Fund (MTGP) 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, MTGP achieves a -0.08% return, which is significantly lower than SMBS's -0.04% return.

MTGP

• 1D: -0.36%
• 1M: -0.90%
• 6M: -0.62%
• YTD: -0.08%
• 1Y: 3.04%
• 3Y*: 4.56%
• 5Y*: 0.10%
• 10Y*: —
• ALL TIME*: 0.87%

SMBS

• 1D: -0.32%
• 1M: -1.03%
• 6M: -0.57%
• YTD: -0.04%
• 1Y: 3.52%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 4.61%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
MTGP WisdomTree Mortgage Plus Bond Fund	$422.32K	$672.43K	$425.74K
SMBS Schwab Mortgage-Backed Securities ETF	$11.39M	$11.79M	$19.43M

MTGP vs. SMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MTGP WisdomTree Mortgage Plus Bond Fund	-0.08%	7.57%	0.10%
SMBS Schwab Mortgage-Backed Securities ETF	-0.04%	8.15%	-0.16%

Correlation

The correlation between MTGP and SMBS is 0.84, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.84
Correlation (All Time) Calculated using the full available price history since Nov 19, 2024	0.82

The correlation between MTGP and SMBS has been stable across timeframes, ranging from 0.82 to 0.84 - a consistent structural relationship.

Return for Risk

MTGP vs. SMBS — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

MTGP

MTGP Risk / Return Rank: 38
MTGP Sharpe Ratio Rank: 37
MTGP Sortino Ratio Rank: 36
MTGP Omega Ratio Rank: 35
MTGP Calmar Ratio Rank: 44
MTGP Martin Ratio Rank: 38

SMBS

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

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

MTGP vs. SMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Mortgage Plus Bond Fund (MTGP) 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.

	MTGP	SMBS	Difference
Sharpe ratio: Return per unit of total volatility	0.93	1.08	-0.16
Sortino ratio: Return per unit of downside risk	1.34	1.57	-0.23
Omega ratio: Gain probability vs. loss probability	1.16	1.19	-0.03
Calmar ratio: Return relative to maximum drawdown	1.57	1.57	+0.01
Martin ratio: Return relative to average drawdown	4.02	4.53	-0.50

MTGP vs. SMBS - Sharpe Ratio Comparison

The current MTGP Sharpe Ratio is 0.93, which is comparable to the SMBS Sharpe Ratio of 1.08. The chart below compares the historical Sharpe Ratios of MTGP 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

MTGP vs. SMBS - Drawdown Comparison

The maximum MTGP drawdown since its inception was -16.63%, which is greater than SMBS's maximum drawdown of -3.20%. Use the drawdown chart below to compare losses from any high point for MTGP and SMBS.

Drawdown Indicators

	MTGP	SMBS	Difference
Max Drawdown Largest peak-to-trough decline	-16.63%	-3.20%	-13.43%
Max Drawdown (1Y) Largest decline over 1 year	-2.53%	-2.83%	+0.30%
Max Drawdown (3Y) Largest decline over 3 years	-5.52%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-16.63%	—	—
Current Drawdown Current decline from peak	-1.81%	-2.06%	+0.25%
Average Drawdown Average peak-to-trough decline	-5.01%	-0.88%	-4.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.98%	0.98%	0.00%

Volatility

MTGP vs. SMBS - Volatility Comparison

WisdomTree Mortgage Plus Bond Fund (MTGP) has a higher volatility of 1.38% compared to Schwab Mortgage-Backed Securities ETF (SMBS) at 1.14%. This indicates that MTGP's price experiences larger fluctuations and is considered to be riskier than SMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MTGP	SMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.38%	1.14%	+0.24%
Volatility (6M) Calculated over the trailing 6-month period	3.17%	3.28%	-0.11%
Volatility (1Y) Calculated over the trailing 1-year period	4.29%	4.09%	+0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.83%	4.81%	+1.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.23%	4.81%	+0.42%

MTGP vs. SMBS - Expense Ratio Comparison

MTGP has a 0.45% expense ratio, which is higher than SMBS's 0.03% expense ratio.

Dividends

MTGP vs. SMBS - Dividend Comparison

MTGP's dividend yield for the trailing twelve months is around 4.42%, less than SMBS's 5.23% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
MTGP WisdomTree Mortgage Plus Bond Fund	4.42%	4.19%	4.05%	3.02%	2.47%	1.64%	2.61%
SMBS Schwab Mortgage-Backed Securities ETF	4.76%	4.83%	0.50%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MTGP and SMBS in my portfolio?

MTGP and SMBS have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MTGP or SMBS?

MTGP has higher volatility (1.38%) compared to SMBS (1.14%). In terms of maximum drawdown, MTGP dropped -16.63% vs SMBS's -3.20%.

Which ETF is better, MTGP or SMBS?

On 1-year performance, SMBS leads with 3.52% vs 3.04% for MTGP. On fees, SMBS is cheaper at 0.03% per year. On volatility, SMBS 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, MTGP or SMBS?

Over the 1-year period, SMBS has performed better with a 3.52% return vs 3.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MTGP or SMBS?

SMBS is cheaper with a 0.03% expense ratio, compared with 0.45% for MTGP.

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

SMBS has the higher dividend yield at 4.76%, compared with 4.42% for MTGP.

What is the main difference between MTGP and SMBS?

They also come from different issuers: WisdomTree and Charles Schwab. Their fees differ too: 0.45% for MTGP and 0.03% for SMBS.

Which has better risk-adjusted returns?

SMBS currently has the higher Sharpe Ratio (1.08 vs 0.93), 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.