SMBS vs. SCHP
SMBS (Schwab Mortgage-Backed Securities ETF) and SCHP (Schwab U.S. TIPS ETF) are both exchange-traded funds - SMBS is a Mortgage Backed Securities fund tracking the Bloomberg US MBS Float Adjusted Total Return Index, while SCHP is a Inflation-Protected Bonds fund tracking the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). Both are passively managed. Over the past year, SMBS returned 3.52% vs 1.89% for SCHP. Their 0.80 correlation means they have sometimes moved together and sometimes differently. Both charge a 0.03% expense ratio.
Performance
SMBS vs. SCHP - Performance Comparison
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Returns By Period
In the year-to-date period, SMBS achieves a -0.04% return, which is significantly lower than SCHP's 0.54% return.
SMBS
- 1D
- -0.32%
- 1M
- -1.03%
- 6M
- -0.57%
- YTD
- -0.04%
- 1Y
- 3.52%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 4.61%
SCHP
- 1D
- -0.11%
- 1M
- -0.76%
- 6M
- -0.03%
- YTD
- 0.54%
- 1Y
- 1.89%
- 3Y*
- 3.86%
- 5Y*
- 0.30%
- 10Y*
- 2.44%
- ALL TIME*
- 2.72%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $93.70M | $94.28M | $106.00M | |
| $11.39M | $11.79M | $19.43M |
SMBS vs. SCHP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
SMBS Schwab Mortgage-Backed Securities ETF | -0.04% | 8.15% | -0.16% |
SCHP Schwab U.S. TIPS ETF | 0.54% | 6.76% | -0.54% |
Correlation
The correlation between SMBS and SCHP is 0.76, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.76 |
Correlation (All Time) Calculated using the full available price history since Nov 19, 2024 | 0.80 |
The correlation between SMBS and SCHP has been stable across timeframes, ranging from 0.76 to 0.80 - a consistent structural relationship.
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Return for Risk
SMBS vs. SCHP — Risk / Return Rank
SMBS
SCHP
SMBS vs. SCHP - 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. TIPS ETF (SCHP). 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 | SCHP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.31 | ||
| Sortino ratioReturn per unit of downside risk | +0.44 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.13 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 1.57 | 1.30 | +0.26 |
| Martin ratioReturn relative to average drawdown | 4.53 | 3.52 | +1.00 |
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Drawdowns
SMBS vs. SCHP - Drawdown Comparison
The maximum SMBS drawdown since its inception was -3.20%, smaller than the maximum SCHP drawdown of -14.26%. Use the drawdown chart below to compare losses from any high point for SMBS and SCHP.
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Drawdown Indicators
| SMBS | SCHP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -3.20% | -14.26% | +11.06% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -1.93% | -0.90% |
Max Drawdown (3Y)Largest decline over 3 years | — | -3.70% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -14.26% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -14.26% | — |
Current DrawdownCurrent decline from peak | -2.06% | -1.30% | -0.76% |
Average DrawdownAverage peak-to-trough decline | -0.88% | -3.90% | +3.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.98% | 0.71% | +0.27% |
Volatility
SMBS vs. SCHP - Volatility Comparison
Schwab Mortgage-Backed Securities ETF (SMBS) has a higher volatility of 1.14% compared to Schwab U.S. TIPS ETF (SCHP) at 0.70%. This indicates that SMBS's price experiences larger fluctuations and is considered to be riskier than SCHP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SMBS | SCHP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.14% | 0.70% | +0.44% |
Volatility (6M)Calculated over the trailing 6-month period | 3.28% | 2.45% | +0.83% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.09% | 3.26% | +0.83% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.81% | 6.11% | -1.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.81% | 5.58% | -0.77% |
SMBS vs. SCHP - Expense Ratio Comparison
Both SMBS and SCHP 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. SCHP - Dividend Comparison
SMBS's dividend yield for the trailing twelve months is around 5.23%, more than SCHP's 4.51% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHP Schwab U.S. TIPS ETF | 4.17% | 4.06% | 2.99% | 3.02% | 7.19% | 4.39% | 1.11% | 2.02% | 2.26% | 1.90% | 1.38% | 0.28% |
SMBS Schwab Mortgage-Backed Securities ETF | 4.76% | 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
SMBS and SCHP have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SMBS has higher volatility (1.14%) compared to SCHP (0.70%). In terms of maximum drawdown, SMBS dropped -3.20% vs SCHP's -14.26%.
On 1-year performance, SMBS leads with 3.52% vs 1.89% for SCHP. Both ETFs have the same 0.03% expense ratio. On volatility, SCHP has been the lower-risk option at 0.70%. 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 3.52% return vs 1.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SMBS and SCHP have the same expense ratio: 0.03% per year.
SMBS has the higher dividend yield at 4.76%, compared with 4.17% for SCHP.
SMBS is categorized as Mortgage Backed Securities, while SCHP is Inflation-Protected Bonds. SMBS tracks Bloomberg US MBS Float Adjusted Total Return Index, while SCHP tracks Bloomberg US Treasury Inflation-Linked Bond Index (Series-L).
SMBS currently has the higher Sharpe Ratio (1.08 vs 0.77), 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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