SECR vs. SMBS

Last updated Jun 4, 2026

SECR (NYLI MacKay Securitized Income ETF) and SMBS (Schwab Mortgage-Backed Securities ETF) are both Mortgage Backed Securities funds. SECR is actively managed, while SMBS is passively managed. Over the past year, SECR returned 5.25% vs 6.78% for SMBS. Their correlation of 0.88 suggests significant overlap in exposure. SECR charges 0.28%/yr vs 0.03%/yr for SMBS.

Performance

SECR vs. SMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in NYLI MacKay Securitized Income ETF (SECR) 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, SECR achieves a 0.66% return, which is significantly lower than SMBS's 0.70% return.

SECR

• 1D: -0.08%
• 1M: 0.28%
• YTD: 0.66%
• 6M: 0.58%
• 1Y: 5.25%
• 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)

SECR vs. SMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SECR NYLI MacKay Securitized Income ETF	0.66%	7.85%	0.16%
SMBS Schwab Mortgage-Backed Securities ETF	0.70%	8.15%	-0.07%

Correlation

The correlation between SECR and SMBS is 0.85, 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	0.85
Correlation (All Time) Calculated using the full available price history since Nov 20, 2024	0.88

The correlation between SECR and SMBS has been stable across timeframes, ranging from 0.85 to 0.88 - a consistent structural relationship.

Return for Risk

SECR vs. SMBS — Risk / Return Rank

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

SECR

SECR Risk / Return Rank: 37
SECR Sharpe Ratio Rank: 38
SECR Sortino Ratio Rank: 39
SECR Omega Ratio Rank: 37
SECR Calmar Ratio Rank: 37
SECR Martin Ratio Rank: 36

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.

SECR vs. SMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for NYLI MacKay Securitized Income ETF (SECR) 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.

	SECR	SMBS	Difference
Sharpe ratio: Return per unit of total volatility	1.33	1.64	-0.31
Sortino ratio: Return per unit of downside risk	1.97	2.42	-0.45
Omega ratio: Gain probability vs. loss probability	1.24	1.30	-0.06
Calmar ratio: Return relative to maximum drawdown	1.79	2.41	-0.62
Martin ratio: Return relative to average drawdown	5.40	8.21	-2.82
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SECR vs. SMBS - Sharpe Ratio Comparison

The current SECR Sharpe Ratio is 1.33, which is comparable to the SMBS Sharpe Ratio of 1.64. The chart below compares the historical Sharpe Ratios of SECR 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

	SECR	SMBS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.33	1.64	-0.31
Sharpe Ratio (All Time) Calculated using the full available price history	1.44	1.18	+0.26

Drawdowns

SECR vs. SMBS - Drawdown Comparison

The maximum SECR drawdown since its inception was -3.93%, which is greater than SMBS's maximum drawdown of -3.20%. Use the drawdown chart below to compare losses from any high point for SECR and SMBS.

Drawdown Indicators

	SECR	SMBS	Difference
Max Drawdown Largest peak-to-trough decline	-3.93%	-3.20%	-0.73%
Max Drawdown (1Y) Largest decline over 1 year	-2.94%	-2.83%	-0.11%
Current Drawdown Current decline from peak	-1.63%	-1.33%	-0.30%
Average Drawdown Average peak-to-trough decline	-1.08%	-0.84%	-0.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.97%	0.83%	+0.14%

Volatility

SECR vs. SMBS - Volatility Comparison

NYLI MacKay Securitized Income ETF (SECR) and Schwab Mortgage-Backed Securities ETF (SMBS) have volatilities of 1.54% 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

	SECR	SMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.54%	1.55%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	2.87%	3.03%	-0.16%
Volatility (1Y) Calculated over the trailing 1-year period	3.96%	4.15%	-0.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.63%	4.86%	-0.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.63%	4.86%	-0.23%

SECR vs. SMBS - Expense Ratio Comparison

SECR has a 0.28% expense ratio, which is higher than SMBS's 0.03% expense ratio.

Dividends

SECR vs. SMBS - Dividend Comparison

SECR's dividend yield for the trailing twelve months is around 6.28%, more than SMBS's 5.17% yield.

Position	TTM	2025	2024
SECR NYLI MacKay Securitized Income ETF	6.28%	6.68%	3.24%
SMBS Schwab Mortgage-Backed Securities ETF	5.17%	4.83%	0.50%

Frequently Asked Questions

Can I hold both SECR and SMBS in my portfolio?

SECR and SMBS have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SECR or SMBS?

SMBS has higher volatility (1.55%) compared to SECR (1.54%). In terms of maximum drawdown, SECR dropped -3.93% vs SMBS's -3.20%.

Which ETF is better, SECR or SMBS?

On 1-year performance, SMBS leads with 6.78% vs 5.25% for SECR. 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, SECR or SMBS?

Over the 1-year period, SMBS has performed better with a 6.78% return vs 5.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SECR or SMBS?

SMBS is cheaper with a 0.03% expense ratio, compared with 0.28% for SECR.

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

SECR has the higher dividend yield at 6.28%, compared with 5.17% for SMBS.

What is the main difference between SECR and SMBS?

They also come from different issuers: NYLI and Charles Schwab. Their fees differ too: 0.28% for SECR and 0.03% for SMBS.

Which has better risk-adjusted returns?

SMBS currently has the higher Sharpe Ratio (1.64 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.