SMB vs. ITB
SMB (VanEck Short Muni ETF) and ITB (iShares U.S. Home Construction ETF) are both exchange-traded funds - SMB is a Municipal Bonds fund tracking the Bloomberg AMT-Free Short Continuous, while ITB is a Building & Construction fund tracking the Dow Jones U.S. Select Home Construction Index. Both are passively managed. Over the past 10 years, SMB returned 1.40%/yr vs 13.43%/yr for ITB. Their 0.04 correlation means their historical movements had little consistent relationship. SMB charges 0.20%/yr vs 0.38%/yr for ITB.
Performance
SMB vs. ITB - Performance Comparison
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Returns By Period
In the year-to-date period, SMB achieves a 0.39% return, which is significantly higher than ITB's -1.69% return. Over the past 10 years, SMB has underperformed ITB with an annualized return of 1.40%, while ITB has yielded a comparatively higher 13.43% annualized return.
SMB
- 1D
- -0.06%
- 1M
- -0.43%
- 6M
- 0.34%
- YTD
- 0.39%
- 1Y
- 1.99%
- 3Y*
- 3.35%
- 5Y*
- 1.08%
- 10Y*
- 1.40%
- ALL TIME*
- 2.01%
ITB
- 1D
- -1.18%
- 1M
- -8.32%
- 6M
- -7.21%
- YTD
- -1.69%
- 1Y
- -5.06%
- 3Y*
- 2.79%
- 5Y*
- 6.57%
- 10Y*
- 13.43%
- ALL TIME*
- 4.08%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $179.18M | $195.32M | $218.82M | |
| $770.61K | $950.10K | $1.02M |
SMB vs. ITB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SMB VanEck Short Muni ETF | 0.39% | 4.61% | 2.41% | 3.14% | -4.50% | 0.12% | 3.30% | 4.54% | 1.86% | 1.16% |
ITB iShares U.S. Home Construction ETF | -1.69% | -5.26% | 2.06% | 68.91% | -26.26% | 49.25% | 26.42% | 48.70% | -30.92% | 59.65% |
Correlation
The correlation between SMB and ITB is 0.29, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.29 |
Correlation (3Y) Balances recent behavior with more history. | 0.25 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.18 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.11 |
Correlation (All Time) Calculated using the full available price history since Feb 28, 2008 | 0.04 |
Over the past year, SMB and ITB have become more correlated (0.29) than their long-term average of 0.04, meaning their price movements have been converging.
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Return for Risk
SMB vs. ITB — Risk / Return Rank
SMB
ITB
SMB vs. ITB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for VanEck Short Muni ETF (SMB) and iShares U.S. Home Construction ETF (ITB). 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.
| SMB | ITB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.60 | ||
| Sortino ratioReturn per unit of downside risk | +2.07 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.01 | +0.28 |
| Calmar ratioReturn relative to maximum drawdown | 2.11 | -0.10 | +2.21 |
| Martin ratioReturn relative to average drawdown | 5.77 | -0.17 | +5.94 |
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Drawdowns
SMB vs. ITB - Drawdown Comparison
The maximum SMB drawdown since its inception was -12.64%, smaller than the maximum ITB drawdown of -86.53%. Use the drawdown chart below to compare losses from any high point for SMB and ITB.
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Drawdown Indicators
| SMB | ITB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.64% | -86.53% | +73.89% |
Max Drawdown (1Y)Largest decline over 1 year | -1.17% | -26.04% | +24.87% |
Max Drawdown (3Y)Largest decline over 3 years | -1.80% | -33.35% | +31.55% |
Max Drawdown (5Y)Largest decline over 5 years | -7.47% | -40.55% | +33.08% |
Max Drawdown (10Y)Largest decline over 10 years | -12.64% | -52.10% | +39.46% |
Current DrawdownCurrent decline from peak | -0.49% | -25.47% | +24.98% |
Average DrawdownAverage peak-to-trough decline | -1.13% | -36.98% | +35.85% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.43% | 14.54% | -14.11% |
Volatility
SMB vs. ITB - Volatility Comparison
The current volatility for VanEck Short Muni ETF (SMB) is 0.42%, while iShares U.S. Home Construction ETF (ITB) has a volatility of 8.79%. This indicates that SMB experiences smaller price fluctuations and is considered to be less risky than ITB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SMB | ITB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.42% | 8.79% | -8.37% |
Volatility (6M)Calculated over the trailing 6-month period | 1.06% | 22.03% | -20.97% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.64% | 29.51% | -27.87% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.48% | 29.57% | -27.09% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.25% | 30.20% | -25.95% |
SMB vs. ITB - Expense Ratio Comparison
SMB has a 0.20% expense ratio, which is lower than ITB's 0.38% expense ratio.
Dividends
SMB vs. ITB - Dividend Comparison
SMB's dividend yield for the trailing twelve months is around 2.77%, more than ITB's 0.68% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | 0.68% | 1.67% | 0.46% | 0.48% | 0.86% | 0.37% | 0.46% | 0.50% | 0.63% | 0.28% | 0.43% | 0.34% |
SMB VanEck Short Muni ETF | 2.53% | 2.63% | 2.38% | 1.83% | 1.32% | 1.24% | 1.50% | 1.58% | 1.49% | 1.23% | 1.12% | 1.13% |
Frequently Asked Questions
SMB and ITB have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ITB has higher volatility (8.79%) compared to SMB (0.42%). In terms of maximum drawdown, SMB dropped -12.64% vs ITB's -86.53%.
On 10-year performance, ITB leads with 13.43% vs 1.40% for SMB. On fees, SMB is cheaper at 0.20% per year. On volatility, SMB has been the lower-risk option at 0.42%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, ITB has performed better with a 13.43% return vs 1.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SMB is cheaper with a 0.20% expense ratio, compared with 0.38% for ITB.
SMB has the higher dividend yield at 2.53%, compared with 0.68% for ITB.
SMB is categorized as Municipal Bonds, while ITB is Building & Construction. SMB tracks Bloomberg AMT-Free Short Continuous, while ITB tracks Dow Jones U.S. Select Home Construction Index. They also come from different issuers: VanEck and iShares. Their fees differ too: 0.20% for SMB and 0.38% for ITB.
SMB currently has the higher Sharpe Ratio (1.51 vs -0.09), 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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