SMBS.L vs. USFR.L
SMBS.L (iShares US Mortgage Backed Securities UCITS ETF) and USFR.L (WisdomTree USD Floating Rate Treasury Bond UCITS ETF USD) are both exchange-traded funds - SMBS.L is a Mortgage Backed Securities fund tracking the Bloomberg US Mortgage Backed Securities Index, while USFR.L is a Government Bonds fund tracking the Bloomberg US Treasury Floating Rate Bond Index. Both are passively managed. Over the past 5 years, SMBS.L returned 1.21%/yr vs 4.71%/yr for USFR.L. A 0.61 correlation means they provide meaningful diversification when combined. SMBS.L charges 0.28%/yr vs 0.15%/yr for USFR.L.
Performance
SMBS.L vs. USFR.L - Performance Comparison
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Different Trading Currencies
SMBS.L is traded in GBp, while USFR.L is traded in USD. To make them comparable, the USFR.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 lower than USFR.L's 2.01% 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%
USFR.L
- 1D
- 0.01%
- 1M
- 1.25%
- YTD
- 2.01%
- 6M
- 1.19%
- 1Y
- 4.97%
- 3Y*
- 2.06%
- 5Y*
- 4.71%
- 10Y*
- —
SMBS.L vs. USFR.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% | 4.09% |
USFR.L WisdomTree USD Floating Rate Treasury Bond UCITS ETF USD | 2.01% | -3.29% | 7.25% | -0.31% | 14.18% | 0.79% | -2.38% | 1.04% |
Correlation
The correlation between SMBS.L and USFR.L is 0.61, 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 | 0.61 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.49 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.54 |
Correlation (All Time) Calculated using the full available price history since Mar 27, 2019 | 0.61 |
The correlation between SMBS.L and USFR.L shifts across timeframes, from 0.49 (3 years) to 0.61 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
SMBS.L vs. USFR.L — Risk / Return Rank
SMBS.L
USFR.L
SMBS.L vs. USFR.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 WisdomTree USD Floating Rate Treasury Bond UCITS ETF USD (USFR.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 | USFR.L | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.43 | ||
| Sortino ratioReturn per unit of downside risk | +0.67 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.13 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | 1.66 | 0.97 | +0.68 |
| Martin ratioReturn relative to average drawdown | 4.26 | 2.60 | +1.66 |
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 | USFR.L | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.17 | 0.75 | +0.43 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.14 | 0.55 | -0.41 |
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 | 0.29 | -0.08 |
Drawdowns
SMBS.L vs. USFR.L - Drawdown Comparison
The maximum SMBS.L drawdown since its inception was -20.65%, which is greater than USFR.L's maximum drawdown of -18.16%. Use the drawdown chart below to compare losses from any high point for SMBS.L and USFR.L.
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Drawdown Indicators
| SMBS.L | USFR.L | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.65% | -18.16% | -2.49% |
Max Drawdown (1Y)Largest decline over 1 year | -4.30% | -5.09% | +0.79% |
Max Drawdown (3Y)Largest decline over 3 years | -8.46% | -9.80% | +1.34% |
Max Drawdown (5Y)Largest decline over 5 years | -15.38% | -15.70% | +0.32% |
Max Drawdown (10Y)Largest decline over 10 years | -20.65% | — | — |
Current DrawdownCurrent decline from peak | -12.50% | -5.90% | -6.60% |
Average DrawdownAverage peak-to-trough decline | -11.05% | -8.93% | -2.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.67% | 1.91% | -0.24% |
Volatility
SMBS.L vs. USFR.L - Volatility Comparison
The current volatility for iShares US Mortgage Backed Securities UCITS ETF (SMBS.L) is 1.65%, while WisdomTree USD Floating Rate Treasury Bond UCITS ETF USD (USFR.L) has a volatility of 1.89%. This indicates that SMBS.L experiences smaller price fluctuations and is considered to be less risky than USFR.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SMBS.L | USFR.L | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.65% | 1.89% | -0.24% |
Volatility (6M)Calculated over the trailing 6-month period | 4.48% | 5.05% | -0.57% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.06% | 6.63% | -0.57% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.56% | 8.60% | -0.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.03% | 8.90% | +1.13% |
SMBS.L vs. USFR.L - Expense Ratio Comparison
SMBS.L has a 0.28% expense ratio, which is higher than USFR.L's 0.15% expense ratio.
Dividends
SMBS.L vs. USFR.L - Dividend Comparison
SMBS.L's dividend yield for the trailing twelve months is around 3.56%, less than USFR.L's 3.99% 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% |
USFR.L WisdomTree USD Floating Rate Treasury Bond UCITS ETF USD | 3.99% | 4.32% | 5.24% | 4.58% | 0.78% | 0.00% | 0.57% | 1.09% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
SMBS.L and USFR.L have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, USFR.L is cheaper at 0.15% per year. The better choice depends on whether you care most about return, fees, risk, or income.
USFR.L is cheaper with a 0.15% expense ratio, compared with 0.28% for SMBS.L.
SMBS.L is categorized as Mortgage Backed Securities, while USFR.L is Government Bonds. SMBS.L tracks Bloomberg US Mortgage Backed Securities Index, while USFR.L tracks Bloomberg US Treasury Floating Rate Bond Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.28% for SMBS.L and 0.15% for USFR.L.
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