OBIL vs. SMBS

Last updated Jun 4, 2026

OBIL (US Treasury 12 Month Bill ETF) and SMBS (Schwab Mortgage-Backed Securities ETF) are both exchange-traded funds - OBIL is a Government Bonds fund tracking the ICE BofA US 1-Year Treasury Bill Index - Benchmark TR Gross, while SMBS is a Mortgage Backed Securities fund tracking the Bloomberg US MBS Float Adjusted Total Return Index. Both are passively managed. Over the past year, OBIL returned 3.83% vs 6.78% for SMBS. A 0.51 correlation means they provide meaningful diversification when combined. OBIL charges 0.15%/yr vs 0.03%/yr for SMBS.

Performance

OBIL vs. SMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in US Treasury 12 Month Bill ETF (OBIL) 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, OBIL achieves a 1.17% return, which is significantly higher than SMBS's 0.70% return.

OBIL

• 1D: 0.00%
• 1M: 0.27%
• YTD: 1.17%
• 6M: 1.51%
• 1Y: 3.83%
• 3Y*: 4.55%
• 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)

OBIL vs. SMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
OBIL US Treasury 12 Month Bill ETF	1.17%	4.19%	0.72%
SMBS Schwab Mortgage-Backed Securities ETF	0.70%	8.15%	-0.07%

Correlation

The correlation between OBIL and SMBS is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.51
Correlation (All Time) Calculated using the full available price history since Nov 20, 2024	0.51

The correlation between OBIL and SMBS has been stable across timeframes, ranging from 0.51 to 0.51 - a consistent structural relationship.

Return for Risk

OBIL vs. SMBS — Risk / Return Rank

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

OBIL

OBIL Risk / Return Rank: 99
OBIL Sharpe Ratio Rank: 99
OBIL Sortino Ratio Rank: 99
OBIL Omega Ratio Rank: 99
OBIL Calmar Ratio Rank: 99
OBIL Martin Ratio Rank: 99

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.

OBIL vs. SMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for US Treasury 12 Month Bill ETF (OBIL) 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.

	OBIL	SMBS	Difference
Sharpe ratio: Return per unit of total volatility	7.07	1.64	+5.43
Sortino ratio: Return per unit of downside risk	16.19	2.42	+13.77
Omega ratio: Gain probability vs. loss probability	3.70	1.30	+2.40
Calmar ratio: Return relative to maximum drawdown	27.56	2.41	+25.15
Martin ratio: Return relative to average drawdown	150.40	8.21	+142.18
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

OBIL vs. SMBS - Sharpe Ratio Comparison

The current OBIL Sharpe Ratio is 7.07, which is higher than the SMBS Sharpe Ratio of 1.64. The chart below compares the historical Sharpe Ratios of OBIL 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

	OBIL	SMBS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	7.07	1.64	+5.43
Sharpe Ratio (All Time) Calculated using the full available price history	5.38	1.18	+4.20

Drawdowns

OBIL vs. SMBS - Drawdown Comparison

The maximum OBIL drawdown since its inception was -0.33%, smaller than the maximum SMBS drawdown of -3.20%. Use the drawdown chart below to compare losses from any high point for OBIL and SMBS.

Drawdown Indicators

	OBIL	SMBS	Difference
Max Drawdown Largest peak-to-trough decline	-0.33%	-3.20%	+2.87%
Max Drawdown (1Y) Largest decline over 1 year	-0.14%	-2.83%	+2.69%
Max Drawdown (3Y) Largest decline over 3 years	-0.21%	—	—
Current Drawdown Current decline from peak	0.00%	-1.33%	+1.33%
Average Drawdown Average peak-to-trough decline	-0.03%	-0.84%	+0.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.03%	0.83%	-0.80%

Volatility

OBIL vs. SMBS - Volatility Comparison

The current volatility for US Treasury 12 Month Bill ETF (OBIL) is 0.10%, while Schwab Mortgage-Backed Securities ETF (SMBS) has a volatility of 1.55%. This indicates that OBIL 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

	OBIL	SMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.10%	1.55%	-1.45%
Volatility (6M) Calculated over the trailing 6-month period	0.33%	3.03%	-2.70%
Volatility (1Y) Calculated over the trailing 1-year period	0.54%	4.15%	-3.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.82%	4.86%	-4.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.82%	4.86%	-4.04%

OBIL vs. SMBS - Expense Ratio Comparison

OBIL has a 0.15% expense ratio, which is higher than SMBS's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

OBIL vs. SMBS - Dividend Comparison

OBIL's dividend yield for the trailing twelve months is around 3.65%, less than SMBS's 5.17% yield.

Position	TTM	2025	2024	2023	2022
OBIL US Treasury 12 Month Bill ETF	3.65%	3.83%	4.56%	4.92%	0.52%
SMBS Schwab Mortgage-Backed Securities ETF	5.17%	4.83%	0.50%	0.00%	0.00%

Frequently Asked Questions

Can I hold both OBIL and SMBS in my portfolio?

OBIL and SMBS have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, OBIL or SMBS?

SMBS has higher volatility (1.55%) compared to OBIL (0.10%). In terms of maximum drawdown, OBIL dropped -0.33% vs SMBS's -3.20%.

Which ETF is better, OBIL or SMBS?

On 1-year performance, SMBS leads with 6.78% vs 3.83% for OBIL. On fees, SMBS is cheaper at 0.03% per year. On volatility, OBIL has been the lower-risk option at 0.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, OBIL or SMBS?

Over the 1-year period, SMBS has performed better with a 6.78% return vs 3.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OBIL or SMBS?

SMBS is cheaper with a 0.03% expense ratio, compared with 0.15% for OBIL.

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

SMBS has the higher dividend yield at 5.17%, compared with 3.65% for OBIL.

What is the main difference between OBIL and SMBS?

OBIL is categorized as Government Bonds, while SMBS is Mortgage Backed Securities. OBIL tracks ICE BofA US 1-Year Treasury Bill Index - Benchmark TR Gross, while SMBS tracks Bloomberg US MBS Float Adjusted Total Return Index. They also come from different issuers: US Benchmark Series and Charles Schwab. Their fees differ too: 0.15% for OBIL and 0.03% for SMBS.

Which has better risk-adjusted returns?

OBIL currently has the higher Sharpe Ratio (7.07 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.