SMBS vs. BIL

Last updated Jun 4, 2026

SMBS (Schwab Mortgage-Backed Securities ETF) and BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) are both exchange-traded funds - SMBS is a Mortgage Backed Securities fund tracking the Bloomberg US MBS Float Adjusted Total Return Index, while BIL is a Government Bonds fund tracking the Bloomberg 1-3 Month U.S. Treasury Bill Index. Both are passively managed. Over the past year, SMBS returned 6.78% vs 3.87% for BIL. At a correlation of -0.12, they often move in opposite directions. SMBS charges 0.03%/yr vs 0.14%/yr for BIL.

Performance

SMBS vs. BIL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Mortgage-Backed Securities ETF (SMBS) and SPDR Bloomberg 1-3 Month T-Bill ETF (BIL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMBS achieves a 0.70% return, which is significantly lower than BIL's 1.49% return.

SMBS

• 1D: -0.24%
• 1M: 0.33%
• YTD: 0.70%
• 6M: 0.82%
• 1Y: 6.78%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BIL

• 1D: 0.02%
• 1M: 0.28%
• YTD: 1.49%
• 6M: 1.77%
• 1Y: 3.87%
• 3Y*: 4.64%
• 5Y*: 3.41%
• 10Y*: 2.18%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SMBS vs. BIL - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SMBS Schwab Mortgage-Backed Securities ETF	0.70%	8.15%	-0.07%
BIL SPDR Bloomberg 1-3 Month T-Bill ETF	1.49%	4.15%	0.52%

Correlation

The correlation between SMBS and BIL is -0.17, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.17
Correlation (All Time) Calculated using the full available price history since Nov 20, 2024	-0.12

Return for Risk

SMBS vs. BIL — Risk / Return Rank

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

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

BIL

BIL Risk / Return Rank: 100
BIL Sharpe Ratio Rank: 100
BIL Sortino Ratio Rank: 100
BIL Omega Ratio Rank: 100
BIL Calmar Ratio Rank: 100
BIL Martin Ratio Rank: 100

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.

SMBS vs. BIL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Mortgage-Backed Securities ETF (SMBS) and SPDR Bloomberg 1-3 Month T-Bill ETF (BIL). 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	BIL	Difference
Sharpe ratio Return per unit of total volatility	1.64	19.71	-18.07
Sortino ratio Return per unit of downside risk	2.42	174.16	-171.74
Omega ratio Gain probability vs. loss probability	1.30	87.91	-86.61
Calmar ratio Return relative to maximum drawdown	2.41	355.35	-352.95
Martin ratio Return relative to average drawdown	8.21	2,817.77	-2,809.56
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMBS vs. BIL - Sharpe Ratio Comparison

The current SMBS Sharpe Ratio is 1.64, which is lower than the BIL Sharpe Ratio of 19.71. The chart below compares the historical Sharpe Ratios of SMBS and BIL, 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

	SMBS	BIL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.64	19.71	-18.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	13.16	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	8.52	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.18	2.78	-1.60

Drawdowns

SMBS vs. BIL - Drawdown Comparison

The maximum SMBS drawdown since its inception was -3.20%, which is greater than BIL's maximum drawdown of -0.78%. Use the drawdown chart below to compare losses from any high point for SMBS and BIL.

Drawdown Indicators

	SMBS	BIL	Difference
Max Drawdown Largest peak-to-trough decline	-3.20%	-0.78%	-2.42%
Max Drawdown (1Y) Largest decline over 1 year	-2.83%	-0.01%	-2.82%
Max Drawdown (3Y) Largest decline over 3 years	—	-0.01%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-0.10%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-0.21%	—
Current Drawdown Current decline from peak	-1.33%	0.00%	-1.33%
Average Drawdown Average peak-to-trough decline	-0.84%	-0.26%	-0.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.83%	0.00%	+0.83%

Volatility

SMBS vs. BIL - Volatility Comparison

Schwab Mortgage-Backed Securities ETF (SMBS) has a higher volatility of 1.55% compared to SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) at 0.05%. This indicates that SMBS's price experiences larger fluctuations and is considered to be riskier than BIL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMBS	BIL	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.55%	0.05%	+1.50%
Volatility (6M) Calculated over the trailing 6-month period	3.03%	0.13%	+2.90%
Volatility (1Y) Calculated over the trailing 1-year period	4.15%	0.20%	+3.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.86%	0.26%	+4.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.86%	0.26%	+4.60%

SMBS vs. BIL - Expense Ratio Comparison

SMBS has a 0.03% expense ratio, which is lower than BIL's 0.14% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SMBS vs. BIL - Dividend Comparison

SMBS's dividend yield for the trailing twelve months is around 5.17%, more than BIL's 3.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
BIL SPDR Bloomberg 1-3 Month T-Bill ETF	3.86%	4.13%	5.03%	4.92%	1.35%	0.00%	0.30%	2.05%	1.66%	0.68%	0.07%
SMBS Schwab Mortgage-Backed Securities ETF	5.17%	4.83%	0.50%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SMBS and BIL in my portfolio?

SMBS and BIL have a correlation of -0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMBS or BIL?

SMBS has higher volatility (1.55%) compared to BIL (0.05%). In terms of maximum drawdown, SMBS dropped -3.20% vs BIL's -0.78%.

Which ETF is better, SMBS or BIL?

On 1-year performance, SMBS leads with 6.78% vs 3.87% for BIL. On fees, SMBS is cheaper at 0.03% per year. On volatility, BIL has been the lower-risk option at 0.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMBS or BIL?

Over the 1-year period, SMBS has performed better with a 6.78% return vs 3.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMBS or BIL?

SMBS is cheaper with a 0.03% expense ratio, compared with 0.14% for BIL.

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

SMBS has the higher dividend yield at 5.17%, compared with 3.86% for BIL.

What is the main difference between SMBS and BIL?

SMBS is categorized as Mortgage Backed Securities, while BIL is Government Bonds. SMBS tracks Bloomberg US MBS Float Adjusted Total Return Index, while BIL tracks Bloomberg 1-3 Month U.S. Treasury Bill Index. They also come from different issuers: Charles Schwab and State Street. Their fees differ too: 0.03% for SMBS and 0.14% for BIL.

Which has better risk-adjusted returns?

BIL currently has the higher Sharpe Ratio (19.71 vs 1.64), 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.