SMBS vs. SCHI
SMBS (Schwab Mortgage-Backed Securities ETF) and SCHI (Schwab 5-10 Year Corporate Bond ETF) are both exchange-traded funds - SMBS is a Mortgage Backed Securities fund tracking the Bloomberg US MBS Float Adjusted Total Return Index, while SCHI is a Corporate Bonds fund tracking the Bloomberg US 5-10 Year Corporate Bond Index. Both are passively managed. Over the past year, SMBS returned 3.67% vs 2.49% for SCHI. Their correlation of 0.86 means they have usually moved in the same direction. Both charge a 0.03% expense ratio.
Performance
SMBS vs. SCHI - Performance Comparison
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Returns By Period
In the year-to-date period, SMBS achieves a 0.10% return, which is significantly higher than SCHI's -0.36% return.
SMBS
- 1D
- 0.15%
- 1M
- -0.88%
- 6M
- -0.24%
- YTD
- 0.10%
- 1Y
- 3.67%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 4.68%
SCHI
- 1D
- 0.28%
- 1M
- -1.03%
- 6M
- -0.49%
- YTD
- -0.36%
- 1Y
- 2.49%
- 3Y*
- 5.90%
- 5Y*
- 0.69%
- 10Y*
- —
- ALL TIME*
- 2.02%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $42.09M | $42.30M | $59.69M | |
| $12.44M | $12.31M | $19.34M |
SMBS vs. SCHI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
SMBS Schwab Mortgage-Backed Securities ETF | 0.10% | 8.15% | -0.16% |
SCHI Schwab 5-10 Year Corporate Bond ETF | -0.36% | 9.47% | -0.24% |
Correlation
The correlation between SMBS and SCHI is 0.86, 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. | 0.86 |
Correlation (All Time) Calculated using the full available price history since Nov 19, 2024 | 0.86 |
The correlation between SMBS and SCHI has been stable across timeframes, ranging from 0.86 to 0.86 - a consistent structural relationship.
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Return for Risk
SMBS vs. SCHI — Risk / Return Rank
SMBS
SCHI
SMBS vs. SCHI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Mortgage-Backed Securities ETF (SMBS) and Schwab 5-10 Year Corporate Bond ETF (SCHI). 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 | SCHI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.30 | ||
| Sortino ratioReturn per unit of downside risk | +0.42 | ||
| Omega ratioGain probability vs. loss probability | 1.16 | 1.10 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 1.30 | 0.83 | +0.47 |
| Martin ratioReturn relative to average drawdown | 3.74 | 2.33 | +1.41 |
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Drawdowns
SMBS vs. SCHI - Drawdown Comparison
The maximum SMBS drawdown since its inception was -3.20%, smaller than the maximum SCHI drawdown of -20.67%. Use the drawdown chart below to compare losses from any high point for SMBS and SCHI.
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Drawdown Indicators
| SMBS | SCHI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -3.20% | -20.67% | +17.47% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -3.01% | +0.18% |
Max Drawdown (3Y)Largest decline over 3 years | — | -5.30% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -20.46% | — |
Current DrawdownCurrent decline from peak | -1.92% | -1.91% | -0.01% |
Average DrawdownAverage peak-to-trough decline | -0.89% | -5.61% | +4.72% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.98% | 1.07% | -0.09% |
Volatility
SMBS vs. SCHI - Volatility Comparison
Schwab Mortgage-Backed Securities ETF (SMBS) and Schwab 5-10 Year Corporate Bond ETF (SCHI) have volatilities of 1.16% and 1.16%, 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 | SCHI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.16% | 1.16% | 0.00% |
Volatility (6M)Calculated over the trailing 6-month period | 3.28% | 3.33% | -0.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.01% | 4.06% | -0.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.81% | 6.67% | -1.86% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.81% | 7.34% | -2.53% |
SMBS vs. SCHI - Expense Ratio Comparison
Both SMBS and SCHI have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
SMBS vs. SCHI - Dividend Comparison
SMBS's dividend yield for the trailing twelve months is around 5.24%, more than SCHI's 5.12% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|---|---|
SCHI Schwab 5-10 Year Corporate Bond ETF | 5.12% | 4.99% | 5.11% | 4.27% | 3.10% | 1.93% | 2.31% | 0.53% |
SMBS Schwab Mortgage-Backed Securities ETF | 5.24% | 4.83% | 0.50% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
SMBS and SCHI have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHI has higher volatility (1.16%) compared to SMBS (1.16%). In terms of maximum drawdown, SMBS dropped -3.20% vs SCHI's -20.67%.
On 1-year performance, SMBS leads with 3.67% vs 2.49% for SCHI. Both ETFs have the same 0.03% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, SMBS has performed better with a 3.67% return vs 2.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SMBS and SCHI have the same expense ratio: 0.03% per year.
SMBS has the higher dividend yield at 5.24%, compared with 5.12% for SCHI.
SMBS is categorized as Mortgage Backed Securities, while SCHI is Corporate Bonds. SMBS tracks Bloomberg US MBS Float Adjusted Total Return Index, while SCHI tracks Bloomberg US 5-10 Year Corporate Bond Index.
SMBS currently has the higher Sharpe Ratio (0.92 vs 0.62), 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.
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