SMBS.L vs. TRE7.L
SMBS.L (iShares US Mortgage Backed Securities UCITS ETF) and TRE7.L (Invesco US Treasury Bond 3-7 Year UCITS ETF Dist) are both exchange-traded funds - SMBS.L is a Mortgage Backed Securities fund tracking the Bloomberg US Mortgage Backed Securities Index, while TRE7.L is a Government Bonds fund tracking the Bloomberg US 3-7 Year Treasury Bond Index. Both are passively managed. Over the past 5 years, SMBS.L returned 1.21%/yr vs 1.46%/yr for TRE7.L. A 0.77 correlation means they provide meaningful diversification when combined. SMBS.L charges 0.28%/yr vs 0.06%/yr for TRE7.L.
Performance
SMBS.L vs. TRE7.L - Performance Comparison
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Different Trading Currencies
SMBS.L is traded in GBp, while TRE7.L is traded in USD. To make them comparable, the TRE7.L values have been converted to GBp using the latest available exchange rates.
Returns By Period
In the year-to-date period, SMBS.L achieves a 0.37% return, which is significantly higher than TRE7.L's -0.03% return.
SMBS.L
- 1D
- 0.17%
- 1M
- 1.23%
- YTD
- 0.37%
- 6M
- 0.34%
- 1Y
- 7.14%
- 3Y*
- 1.47%
- 5Y*
- 1.21%
- 10Y*
- 1.85%
TRE7.L
- 1D
- 0.20%
- 1M
- 0.87%
- YTD
- -0.03%
- 6M
- -0.78%
- 1Y
- 4.24%
- 3Y*
- 1.09%
- 5Y*
- 1.46%
- 10Y*
- —
SMBS.L vs. TRE7.L - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
SMBS.L iShares US Mortgage Backed Securities UCITS ETF | 0.37% | 1.02% | 3.07% | -1.87% | -0.85% | -0.38% | 0.15% | 3.54% |
TRE7.L Invesco US Treasury Bond 3-7 Year UCITS ETF Dist | -0.03% | -0.33% | 3.87% | -0.96% | 1.41% | -1.42% | 3.84% | 2.68% |
Correlation
The correlation between SMBS.L and TRE7.L is 0.73, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.73 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.76 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.76 |
Correlation (All Time) Calculated using the full available price history since Jan 15, 2019 | 0.77 |
The correlation between SMBS.L and TRE7.L has been stable across timeframes, ranging from 0.73 to 0.77 - a consistent structural relationship.
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Return for Risk
SMBS.L vs. TRE7.L — Risk / Return Rank
SMBS.L
TRE7.L
SMBS.L vs. TRE7.L - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares US Mortgage Backed Securities UCITS ETF (SMBS.L) and Invesco US Treasury Bond 3-7 Year UCITS ETF Dist (TRE7.L). 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.
| SMBS.L | TRE7.L | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.51 | ||
| Sortino ratioReturn per unit of downside risk | +0.77 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.12 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.66 | 0.76 | +0.90 |
| Martin ratioReturn relative to average drawdown | 4.26 | 2.01 | +2.24 |
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
| SMBS.L | TRE7.L | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.17 | 0.67 | +0.51 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.14 | 0.17 | -0.03 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.18 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.20 | 0.14 | +0.07 |
Drawdowns
SMBS.L vs. TRE7.L - Drawdown Comparison
The maximum SMBS.L drawdown since its inception was -20.65%, roughly equal to the maximum TRE7.L drawdown of -20.08%. Use the drawdown chart below to compare losses from any high point for SMBS.L and TRE7.L.
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Drawdown Indicators
| SMBS.L | TRE7.L | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.65% | -20.08% | -0.57% |
Max Drawdown (1Y)Largest decline over 1 year | -4.30% | -5.58% | +1.28% |
Max Drawdown (3Y)Largest decline over 3 years | -8.46% | -7.61% | -0.85% |
Max Drawdown (5Y)Largest decline over 5 years | -15.38% | -16.00% | +0.62% |
Max Drawdown (10Y)Largest decline over 10 years | -20.65% | — | — |
Current DrawdownCurrent decline from peak | -12.50% | -12.65% | +0.15% |
Average DrawdownAverage peak-to-trough decline | -11.05% | -12.36% | +1.31% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.67% | 2.10% | -0.43% |
Volatility
SMBS.L vs. TRE7.L - Volatility Comparison
iShares US Mortgage Backed Securities UCITS ETF (SMBS.L) and Invesco US Treasury Bond 3-7 Year UCITS ETF Dist (TRE7.L) have volatilities of 1.65% and 1.62%, 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.
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Volatility by Period
| SMBS.L | TRE7.L | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.65% | 1.62% | +0.03% |
Volatility (6M)Calculated over the trailing 6-month period | 4.48% | 5.03% | -0.55% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.06% | 6.34% | -0.28% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.56% | 8.55% | +0.01% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.03% | 8.91% | +1.12% |
SMBS.L vs. TRE7.L - Expense Ratio Comparison
SMBS.L has a 0.28% expense ratio, which is higher than TRE7.L's 0.06% expense ratio.
Dividends
SMBS.L vs. TRE7.L - Dividend Comparison
SMBS.L's dividend yield for the trailing twelve months is around 3.56%, less than TRE7.L's 4.14% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
SMBS.L iShares US Mortgage Backed Securities UCITS ETF | 3.56% | 3.57% | 3.50% | 3.23% | 2.39% | 2.22% | 2.71% | 3.06% | 2.99% | 3.00% | 1.51% |
TRE7.L Invesco US Treasury Bond 3-7 Year UCITS ETF Dist | 4.14% | 4.09% | 4.23% | 3.61% | 1.72% | 0.87% | 1.29% | 1.89% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
SMBS.L and TRE7.L have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, TRE7.L is cheaper at 0.06% per year. The better choice depends on whether you care most about return, fees, risk, or income.
TRE7.L is cheaper with a 0.06% expense ratio, compared with 0.28% for SMBS.L.
SMBS.L is categorized as Mortgage Backed Securities, while TRE7.L is Government Bonds. SMBS.L tracks Bloomberg US Mortgage Backed Securities Index, while TRE7.L tracks Bloomberg US 3-7 Year Treasury Bond Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.28% for SMBS.L and 0.06% for TRE7.L.
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