PMBS vs. SMBS

Last updated Jun 4, 2026

PMBS (PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund) and SMBS (Schwab Mortgage-Backed Securities ETF) are both Mortgage Backed Securities funds. PMBS is actively managed, while SMBS is passively managed. Over the past year, PMBS returned 7.55% vs 6.78% for SMBS. Their correlation of 0.94 suggests significant overlap in exposure. PMBS charges 0.71%/yr vs 0.03%/yr for SMBS.

Performance

PMBS vs. SMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) 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, PMBS achieves a 0.90% return, which is significantly higher than SMBS's 0.70% return.

PMBS

• 1D: -0.21%
• 1M: 0.11%
• YTD: 0.90%
• 6M: 1.15%
• 1Y: 7.55%
• 3Y*: —
• 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)

PMBS vs. SMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PMBS PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund	0.90%	8.92%	-0.03%
SMBS Schwab Mortgage-Backed Securities ETF	0.70%	8.15%	-0.07%

Correlation

The correlation between PMBS and SMBS is 0.94, 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	0.94
Correlation (All Time) Calculated using the full available price history since Nov 20, 2024	0.94

The correlation between PMBS and SMBS has been stable across timeframes, ranging from 0.94 to 0.94 - a consistent structural relationship.

Return for Risk

PMBS vs. SMBS — Risk / Return Rank

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

PMBS

PMBS Risk / Return Rank: 53
PMBS Sharpe Ratio Rank: 53
PMBS Sortino Ratio Rank: 56
PMBS Omega Ratio Rank: 53
PMBS Calmar Ratio Rank: 52
PMBS Martin Ratio Rank: 52

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.

PMBS vs. SMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) 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.

	PMBS	SMBS	Difference
Sharpe ratio: Return per unit of total volatility	1.80	1.64	+0.15
Sortino ratio: Return per unit of downside risk	2.66	2.42	+0.24
Omega ratio: Gain probability vs. loss probability	1.33	1.30	+0.03
Calmar ratio: Return relative to maximum drawdown	2.56	2.41	+0.15
Martin ratio: Return relative to average drawdown	8.70	8.21	+0.48
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PMBS vs. SMBS - Sharpe Ratio Comparison

The current PMBS Sharpe Ratio is 1.80, which is comparable to the SMBS Sharpe Ratio of 1.64. The chart below compares the historical Sharpe Ratios of PMBS 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

	PMBS	SMBS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.80	1.64	+0.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.83	1.18	-0.35

Drawdowns

PMBS vs. SMBS - Drawdown Comparison

The maximum PMBS drawdown since its inception was -4.35%, which is greater than SMBS's maximum drawdown of -3.20%. Use the drawdown chart below to compare losses from any high point for PMBS and SMBS.

Drawdown Indicators

	PMBS	SMBS	Difference
Max Drawdown Largest peak-to-trough decline	-4.35%	-3.20%	-1.15%
Max Drawdown (1Y) Largest decline over 1 year	-2.97%	-2.83%	-0.14%
Current Drawdown Current decline from peak	-1.55%	-1.33%	-0.22%
Average Drawdown Average peak-to-trough decline	-1.14%	-0.84%	-0.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.87%	0.83%	+0.04%

Volatility

PMBS vs. SMBS - Volatility Comparison

PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) and Schwab Mortgage-Backed Securities ETF (SMBS) have volatilities of 1.52% and 1.55%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PMBS	SMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.52%	1.55%	-0.03%
Volatility (6M) Calculated over the trailing 6-month period	3.10%	3.03%	+0.07%
Volatility (1Y) Calculated over the trailing 1-year period	4.22%	4.15%	+0.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.88%	4.86%	+0.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.88%	4.86%	+0.02%

PMBS vs. SMBS - Expense Ratio Comparison

PMBS has a 0.71% expense ratio, which is higher than SMBS's 0.03% expense ratio.

Dividends

PMBS vs. SMBS - Dividend Comparison

PMBS's dividend yield for the trailing twelve months is around 4.98%, less than SMBS's 5.17% yield.

Position	TTM	2025	2024
PMBS PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund	4.98%	4.73%	1.59%
SMBS Schwab Mortgage-Backed Securities ETF	5.17%	4.83%	0.50%

Frequently Asked Questions

Can I hold both PMBS and SMBS in my portfolio?

With a correlation of 0.94, PMBS and SMBS move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, PMBS or SMBS?

SMBS has higher volatility (1.55%) compared to PMBS (1.52%). In terms of maximum drawdown, PMBS dropped -4.35% vs SMBS's -3.20%.

Which ETF is better, PMBS or SMBS?

On 1-year performance, PMBS leads with 7.55% vs 6.78% for SMBS. On fees, SMBS is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PMBS or SMBS?

Over the 1-year period, PMBS has performed better with a 7.55% return vs 6.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PMBS or SMBS?

SMBS is cheaper with a 0.03% expense ratio, compared with 0.71% for PMBS.

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

SMBS has the higher dividend yield at 5.17%, compared with 4.98% for PMBS.

What is the main difference between PMBS and SMBS?

They also come from different issuers: PIMCO and Charles Schwab. Their fees differ too: 0.71% for PMBS and 0.03% for SMBS.

Which has better risk-adjusted returns?

PMBS currently has the higher Sharpe Ratio (1.80 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.