SCHI vs. MBB
SCHI (Schwab 5-10 Year Corporate Bond ETF) and MBB (iShares MBS Bond ETF) are both exchange-traded funds - SCHI is a Corporate Bonds fund tracking the Bloomberg US Aggregate Credit - Corporate (5-10 Y), while MBB is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index. Both are passively managed. Over the past 5 years, SCHI returned 1.29%/yr vs 0.52%/yr for MBB. Their correlation of 0.85 suggests significant overlap in exposure. SCHI charges 0.05%/yr vs 0.06%/yr for MBB.
Performance
SCHI vs. MBB - Performance Comparison
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Returns By Period
In the year-to-date period, SCHI achieves a 0.46% return, which is significantly lower than MBB's 1.01% return.
SCHI
- 1D
- 0.09%
- 1M
- 0.99%
- YTD
- 0.46%
- 6M
- 0.82%
- 1Y
- 6.04%
- 3Y*
- 6.21%
- 5Y*
- 1.29%
- 10Y*
- —
MBB
- 1D
- 0.15%
- 1M
- 1.37%
- YTD
- 1.01%
- 6M
- 1.52%
- 1Y
- 6.57%
- 3Y*
- 4.44%
- 5Y*
- 0.52%
- 10Y*
- 1.33%
SCHI vs. MBB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
SCHI Schwab 5-10 Year Corporate Bond ETF | 0.46% | 9.47% | 3.32% | 8.97% | -14.06% | -1.85% | 9.74% | 0.83% |
MBB iShares MBS Bond ETF | 1.01% | 8.38% | 1.31% | 5.01% | -11.74% | -1.43% | 4.08% | 0.32% |
Correlation
The correlation between SCHI and MBB is 0.91, 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 | 0.91 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.93 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.91 |
Correlation (All Time) Calculated using the full available price history since Oct 10, 2019 | 0.85 |
The correlation between SCHI and MBB has been stable across timeframes, ranging from 0.85 to 0.93 - a consistent structural relationship.
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Return for Risk
SCHI vs. MBB — Risk / Return Rank
SCHI
MBB
SCHI vs. MBB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab 5-10 Year Corporate Bond ETF (SCHI) and iShares MBS Bond ETF (MBB). 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.
| SCHI | MBB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.02 | ||
| Sortino ratioReturn per unit of downside risk | -0.01 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.27 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.01 | 2.24 | -0.22 |
| Martin ratioReturn relative to average drawdown | 6.58 | 7.12 | -0.54 |
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Drawdowns
SCHI vs. MBB - Drawdown Comparison
The maximum SCHI drawdown since its inception was -20.67%, which is greater than MBB's maximum drawdown of -17.64%. Use the drawdown chart below to compare losses from any high point for SCHI and MBB.
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Drawdown Indicators
| SCHI | MBB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.67% | -17.64% | -3.03% |
Max Drawdown (1Y)Largest decline over 1 year | -3.01% | -2.94% | -0.07% |
Max Drawdown (3Y)Largest decline over 3 years | -6.14% | -7.68% | +1.54% |
Max Drawdown (5Y)Largest decline over 5 years | -20.67% | -17.19% | -3.48% |
Max Drawdown (10Y)Largest decline over 10 years | — | -17.64% | — |
Current DrawdownCurrent decline from peak | -1.10% | -1.09% | -0.01% |
Average DrawdownAverage peak-to-trough decline | -5.69% | -2.35% | -3.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.92% | 0.00% |
Volatility
SCHI vs. MBB - Volatility Comparison
The current volatility for Schwab 5-10 Year Corporate Bond ETF (SCHI) is 1.48%, while iShares MBS Bond ETF (MBB) has a volatility of 1.58%. This indicates that SCHI experiences smaller price fluctuations and is considered to be less risky than MBB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SCHI | MBB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.48% | 1.58% | -0.10% |
Volatility (6M)Calculated over the trailing 6-month period | 3.20% | 3.29% | -0.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.12% | 4.42% | -0.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.67% | 6.82% | -0.15% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.39% | 5.31% | +2.08% |
SCHI vs. MBB - Expense Ratio Comparison
SCHI has a 0.05% expense ratio, which is lower than MBB's 0.06% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
SCHI vs. MBB - Dividend Comparison
SCHI's dividend yield for the trailing twelve months is around 5.03%, more than MBB's 4.26% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 4.26% | 4.21% | 3.94% | 3.40% | 2.31% | 1.05% | 2.10% | 2.77% | 2.64% | 2.23% | 2.58% | 2.66% |
SCHI Schwab 5-10 Year Corporate Bond ETF | 5.03% | 4.99% | 5.11% | 4.27% | 3.10% | 1.93% | 2.31% | 0.53% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
With a correlation of 0.91, SCHI and MBB 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.
MBB has higher volatility (1.58%) compared to SCHI (1.48%). In terms of maximum drawdown, SCHI dropped -20.67% vs MBB's -17.64%.
On 5-year performance, SCHI leads with 1.29% vs 0.52% for MBB. On fees, SCHI is cheaper at 0.05% per year. On volatility, SCHI has been the lower-risk option at 1.48%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, SCHI has performed better with a 1.29% return vs 0.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHI is cheaper with a 0.05% expense ratio, compared with 0.06% for MBB.
SCHI has the higher dividend yield at 5.03%, compared with 4.26% for MBB.
SCHI is categorized as Corporate Bonds, while MBB is Mortgage Backed Securities. SCHI tracks Bloomberg US Aggregate Credit - Corporate (5-10 Y), while MBB tracks Barclays Capital U.S. MBS Index. They also come from different issuers: Charles Schwab and iShares. Their fees differ too: 0.05% for SCHI and 0.06% for MBB.
MBB currently has the higher Sharpe Ratio (1.49 vs 1.47), 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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