SMBS vs. SCHG

Last updated Jun 4, 2026

SMBS (Schwab Mortgage-Backed Securities ETF) and SCHG (Schwab U.S. Large-Cap Growth ETF) are both exchange-traded funds - SMBS is a Mortgage Backed Securities fund tracking the Bloomberg US MBS Float Adjusted Total Return Index, while SCHG is a Large Cap Growth Equities fund tracking the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. Both are passively managed. Over the past year, SMBS returned 6.78% vs 24.64% for SCHG. At a 0.12 correlation, their price movements are largely independent. SMBS charges 0.03%/yr vs 0.04%/yr for SCHG.

Performance

SMBS vs. SCHG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Mortgage-Backed Securities ETF (SMBS) and Schwab U.S. Large-Cap Growth ETF (SCHG). 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 SCHG's 6.42% return.

SMBS

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

SCHG

• 1D: -1.23%
• 1M: 4.81%
• YTD: 6.42%
• 6M: 5.81%
• 1Y: 24.64%
• 3Y*: 25.02%
• 5Y*: 15.59%
• 10Y*: 18.77%

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

SMBS vs. SCHG - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SMBS Schwab Mortgage-Backed Securities ETF	0.70%	8.15%	-0.07%
SCHG Schwab U.S. Large-Cap Growth ETF	6.42%	17.50%	1.94%

Correlation

The correlation between SMBS and SCHG is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (All Time) Calculated using the full available price history since Nov 20, 2024	0.12

The correlation between SMBS and SCHG shifts across timeframes, from 0.12 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

SMBS vs. SCHG — 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

SCHG

SCHG Risk / Return Rank: 39
SCHG Sharpe Ratio Rank: 45
SCHG Sortino Ratio Rank: 43
SCHG Omega Ratio Rank: 43
SCHG Calmar Ratio Rank: 30
SCHG Martin Ratio Rank: 33

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. SCHG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Mortgage-Backed Securities ETF (SMBS) and Schwab U.S. Large-Cap Growth ETF (SCHG). 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	SCHG	Difference
Sharpe ratio Return per unit of total volatility	1.64	1.60	+0.04
Sortino ratio Return per unit of downside risk	2.42	2.18	+0.24
Omega ratio Gain probability vs. loss probability	1.30	1.28	+0.02
Calmar ratio Return relative to maximum drawdown	2.41	1.51	+0.90
Martin ratio Return relative to average drawdown	8.21	5.04	+3.17
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. SCHG - Sharpe Ratio Comparison

The current SMBS Sharpe Ratio is 1.64, which is comparable to the SCHG Sharpe Ratio of 1.60. The chart below compares the historical Sharpe Ratios of SMBS and SCHG, 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	SCHG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.64	1.60	+0.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.70	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.87	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.18	0.84	+0.34

Drawdowns

SMBS vs. SCHG - Drawdown Comparison

The maximum SMBS drawdown since its inception was -3.20%, smaller than the maximum SCHG drawdown of -34.59%. Use the drawdown chart below to compare losses from any high point for SMBS and SCHG.

Drawdown Indicators

	SMBS	SCHG	Difference
Max Drawdown Largest peak-to-trough decline	-3.20%	-34.59%	+31.39%
Max Drawdown (1Y) Largest decline over 1 year	-2.83%	-16.41%	+13.58%
Max Drawdown (3Y) Largest decline over 3 years	—	-23.39%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-34.59%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-34.59%	—
Current Drawdown Current decline from peak	-1.33%	-1.78%	+0.45%
Average Drawdown Average peak-to-trough decline	-0.84%	-5.20%	+4.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.83%	4.90%	-4.07%

Volatility

SMBS vs. SCHG - Volatility Comparison

The current volatility for Schwab Mortgage-Backed Securities ETF (SMBS) is 1.55%, while Schwab U.S. Large-Cap Growth ETF (SCHG) has a volatility of 3.61%. This indicates that SMBS experiences smaller price fluctuations and is considered to be less risky than SCHG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMBS	SCHG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.55%	3.61%	-2.06%
Volatility (6M) Calculated over the trailing 6-month period	3.03%	11.62%	-8.59%
Volatility (1Y) Calculated over the trailing 1-year period	4.15%	15.50%	-11.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.86%	22.27%	-17.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.86%	21.55%	-16.69%

SMBS vs. SCHG - Expense Ratio Comparison

SMBS has a 0.03% expense ratio, which is lower than SCHG's 0.04% 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. SCHG - Dividend Comparison

SMBS's dividend yield for the trailing twelve months is around 5.17%, more than SCHG's 0.36% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHG Schwab U.S. Large-Cap Growth ETF	0.36%	0.36%	0.39%	0.46%	0.55%	0.42%	0.52%	0.82%	1.27%	1.01%	1.04%	1.22%
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%	0.00%

Frequently Asked Questions

Can I hold both SMBS and SCHG in my portfolio?

SMBS and SCHG have a correlation of 0.23, 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 SCHG?

SCHG has higher volatility (3.61%) compared to SMBS (1.55%). In terms of maximum drawdown, SMBS dropped -3.20% vs SCHG's -34.59%.

Which ETF is better, SMBS or SCHG?

On 1-year performance, SCHG leads with 24.64% vs 6.78% for SMBS. On fees, SMBS is cheaper at 0.03% per year. On volatility, SMBS has been the lower-risk option at 1.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMBS or SCHG?

Over the 1-year period, SCHG has performed better with a 24.64% return vs 6.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMBS or SCHG?

SMBS is cheaper with a 0.03% expense ratio, compared with 0.04% for SCHG.

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

SMBS has the higher dividend yield at 5.17%, compared with 0.36% for SCHG.

What is the main difference between SMBS and SCHG?

SMBS is categorized as Mortgage Backed Securities, while SCHG is Large Cap Growth Equities. SMBS tracks Bloomberg US MBS Float Adjusted Total Return Index, while SCHG tracks Dow Jones U.S. Large-Cap Growth Total Stock Market Index. Their fees differ too: 0.03% for SMBS and 0.04% for SCHG.

Which has better risk-adjusted returns?

SMBS currently has the higher Sharpe Ratio (1.64 vs 1.60), 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.