SHY vs. SMBS
Compare and contrast key facts about iShares 1-3 Year Treasury Bond ETF (SHY) and Schwab Mortgage-Backed Securities ETF (SMBS).
SHY and SMBS are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SHY is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 1-3 Year Treasury Bond Index. It was launched on Jul 22, 2002. SMBS is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US MBS Float Adjusted Total Return Index. It was launched on Nov 18, 2024. Both SHY and SMBS are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Performance
SHY vs. SMBS - Performance Comparison
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SHY vs. SMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.26% | 4.95% | 0.54% |
SMBS Schwab Mortgage-Backed Securities ETF | 0.36% | 8.15% | -0.07% |
Returns By Period
In the year-to-date period, SHY achieves a 0.26% return, which is significantly lower than SMBS's 0.36% return.
SHY
- 1D
- -0.00%
- 1M
- -0.29%
- YTD
- 0.26%
- 6M
- 1.22%
- 1Y
- 3.57%
- 3Y*
- 3.88%
- 5Y*
- 1.70%
- 10Y*
- 1.65%
SMBS
- 1D
- 0.20%
- 1M
- -1.67%
- YTD
- 0.36%
- 6M
- 1.92%
- 1Y
- 5.33%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
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SHY vs. SMBS - Expense Ratio Comparison
SHY 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%.
Return for Risk
SHY vs. SMBS — Risk / Return Rank
SHY
SMBS
SHY vs. SMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) 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.
| SHY | SMBS | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.48 | 1.12 | +1.35 |
Sortino ratioReturn per unit of downside risk | 4.07 | 1.61 | +2.46 |
Omega ratioGain probability vs. loss probability | 1.52 | 1.20 | +0.32 |
Calmar ratioReturn relative to maximum drawdown | 4.06 | 1.94 | +2.12 |
Martin ratioReturn relative to average drawdown | 15.56 | 5.61 | +9.95 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SHY | SMBS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.48 | 1.12 | +1.35 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.87 | — | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.06 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.29 | 1.27 | +0.02 |
Correlation
The correlation between SHY and SMBS is 0.75, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Dividends
SHY vs. SMBS - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.72%, less than SMBS's 4.80% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 3.72% | 3.81% | 3.92% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.71% | 0.54% |
SMBS Schwab Mortgage-Backed Securities ETF | 4.41% | 4.83% | 0.50% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
SHY vs. SMBS - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, which is greater than SMBS's maximum drawdown of -3.20%. Use the drawdown chart below to compare losses from any high point for SHY and SMBS.
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Drawdown Indicators
| SHY | SMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -3.20% | -2.51% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -2.83% | +1.94% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | — | — |
Current DrawdownCurrent decline from peak | -0.47% | -1.67% | +1.20% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -0.77% | +0.25% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 0.98% | -0.75% |
Volatility
SHY vs. SMBS - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.58%, while Schwab Mortgage-Backed Securities ETF (SMBS) has a volatility of 1.82%. This indicates that SHY 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.
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Volatility by Period
| SHY | SMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.58% | 1.82% | -1.24% |
Volatility (6M)Calculated over the trailing 6-month period | 0.89% | 2.75% | -1.86% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.45% | 4.77% | -3.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.97% | 4.92% | -2.95% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.56% | 4.92% | -3.36% |