SMBS vs. JMTG

Last updated Aug 1, 2026

SMBS (Schwab Mortgage-Backed Securities ETF) and JMTG (JPMorgan Mortgage-Backed Securities ETF) are both Mortgage Backed Securities funds. SMBS is passively managed, while JMTG is actively managed. Over the past year, SMBS returned 3.52% vs 3.50% for JMTG. Their correlation of 0.89 means they have usually moved in the same direction. SMBS charges 0.03%/yr vs 0.24%/yr for JMTG.

Performance

SMBS vs. JMTG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Mortgage-Backed Securities ETF (SMBS) and JPMorgan Mortgage-Backed Securities ETF (JMTG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMBS achieves a -0.04% return, which is significantly lower than JMTG's 0.02% return.

SMBS

• 1D: -0.32%
• 1M: -1.03%
• 6M: -0.57%
• YTD: -0.04%
• 1Y: 3.52%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 4.61%

JMTG

• 1D: -0.38%
• 1M: -0.99%
• 6M: -0.10%
• YTD: 0.02%
• 1Y: 3.50%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.65%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
JMTG JPMorgan Mortgage-Backed Securities ETF	$30.92M	$28.07M	$37.29M
SMBS Schwab Mortgage-Backed Securities ETF	$11.39M	$11.79M	$19.43M

SMBS vs. JMTG - Yearly Performance Comparison

	2026 (YTD)	2025
SMBS Schwab Mortgage-Backed Securities ETF	-0.04%	4.20%
JMTG JPMorgan Mortgage-Backed Securities ETF	0.02%	3.94%

Correlation

The correlation between SMBS and JMTG is 0.90, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.90
Correlation (All Time) Calculated using the full available price history since Jun 30, 2025	0.89

The correlation between SMBS and JMTG has been stable across timeframes, ranging from 0.89 to 0.90 - a consistent structural relationship.

Return for Risk

SMBS vs. JMTG — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SMBS

SMBS Risk / Return Rank: 43
SMBS Sharpe Ratio Rank: 44
SMBS Sortino Ratio Rank: 43
SMBS Omega Ratio Rank: 41
SMBS Calmar Ratio Rank: 44
SMBS Martin Ratio Rank: 42

JMTG

JMTG Risk / Return Rank: 46
JMTG Sharpe Ratio Rank: 49
JMTG Sortino Ratio Rank: 50
JMTG Omega Ratio Rank: 47
JMTG Calmar Ratio Rank: 45
JMTG Martin Ratio Rank: 39

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SMBS vs. JMTG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Mortgage-Backed Securities ETF (SMBS) and JPMorgan Mortgage-Backed Securities ETF (JMTG). 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.

	SMBS	JMTG	Difference
Sharpe ratio: Return per unit of total volatility	1.08	1.22	-0.13
Sortino ratio: Return per unit of downside risk	1.57	1.79	-0.22
Omega ratio: Gain probability vs. loss probability	1.19	1.22	-0.02
Calmar ratio: Return relative to maximum drawdown	1.57	1.61	-0.05
Martin ratio: Return relative to average drawdown	4.53	4.07	+0.46

SMBS vs. JMTG - Sharpe Ratio Comparison

The current SMBS Sharpe Ratio is 1.08, which is comparable to the JMTG Sharpe Ratio of 1.22. The chart below compares the historical Sharpe Ratios of SMBS and JMTG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SMBS vs. JMTG - Drawdown Comparison

The maximum SMBS drawdown since its inception was -3.20%, which is greater than JMTG's maximum drawdown of -2.78%. Use the drawdown chart below to compare losses from any high point for SMBS and JMTG.

Drawdown Indicators

	SMBS	JMTG	Difference
Max Drawdown Largest peak-to-trough decline	-3.20%	-2.78%	-0.42%
Max Drawdown (1Y) Largest decline over 1 year	-2.83%	-2.78%	-0.05%
Current Drawdown Current decline from peak	-2.06%	-2.22%	+0.16%
Average Drawdown Average peak-to-trough decline	-0.88%	-0.80%	-0.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.98%	1.10%	-0.12%

Volatility

SMBS vs. JMTG - Volatility Comparison

Schwab Mortgage-Backed Securities ETF (SMBS) has a higher volatility of 1.14% compared to JPMorgan Mortgage-Backed Securities ETF (JMTG) at 0.97%. This indicates that SMBS's price experiences larger fluctuations and is considered to be riskier than JMTG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMBS	JMTG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.14%	0.97%	+0.17%
Volatility (6M) Calculated over the trailing 6-month period	3.28%	2.92%	+0.36%
Volatility (1Y) Calculated over the trailing 1-year period	4.09%	3.68%	+0.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.81%	3.68%	+1.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.81%	3.68%	+1.13%

SMBS vs. JMTG - Expense Ratio Comparison

SMBS has a 0.03% expense ratio, which is lower than JMTG's 0.24% 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. JMTG - Dividend Comparison

SMBS's dividend yield for the trailing twelve months is around 5.23%, more than JMTG's 4.34% yield.

Position	TTM	2025	2024
JMTG JPMorgan Mortgage-Backed Securities ETF	3.97%	2.10%	0.00%
SMBS Schwab Mortgage-Backed Securities ETF	4.76%	4.83%	0.50%

Frequently Asked Questions

Can I hold both SMBS and JMTG in my portfolio?

With a correlation of 0.90, SMBS and JMTG move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, SMBS or JMTG?

SMBS has higher volatility (1.14%) compared to JMTG (0.97%). In terms of maximum drawdown, SMBS dropped -3.20% vs JMTG's -2.78%.

Which ETF is better, SMBS or JMTG?

On 1-year performance, SMBS leads with 3.52% vs 3.50% for JMTG. On fees, SMBS is cheaper at 0.03% per year. On volatility, JMTG has been the lower-risk option at 0.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMBS or JMTG?

Over the 1-year period, SMBS has performed better with a 3.52% return vs 3.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMBS or JMTG?

SMBS is cheaper with a 0.03% expense ratio, compared with 0.24% for JMTG.

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

SMBS has the higher dividend yield at 4.76%, compared with 3.97% for JMTG.

What is the main difference between SMBS and JMTG?

They also come from different issuers: Charles Schwab and JPMorgan. Their fees differ too: 0.03% for SMBS and 0.24% for JMTG.

Which has better risk-adjusted returns?

JMTG currently has the higher Sharpe Ratio (1.22 vs 1.08), 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.