SMBS vs. SPTS

Last updated Jun 4, 2026

SMBS (Schwab Mortgage-Backed Securities ETF) and SPTS (SPDR Portfolio Short Term Treasury ETF) are both exchange-traded funds - SMBS is a Mortgage Backed Securities fund tracking the Bloomberg US MBS Float Adjusted Total Return Index, while SPTS is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past year, SMBS returned 6.78% vs 3.45% for SPTS. A 0.74 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.

Performance

SMBS vs. SPTS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Mortgage-Backed Securities ETF (SMBS) and SPDR Portfolio Short Term Treasury ETF (SPTS). 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 higher than SPTS's 0.45% return.

SMBS

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

SPTS

• 1D: -0.07%
• 1M: 0.05%
• YTD: 0.45%
• 6M: 0.77%
• 1Y: 3.45%
• 3Y*: 4.18%
• 5Y*: 1.81%
• 10Y*: 1.67%

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

SMBS vs. SPTS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SMBS Schwab Mortgage-Backed Securities ETF	0.70%	8.15%	-0.07%
SPTS SPDR Portfolio Short Term Treasury ETF	0.45%	5.05%	0.69%

Correlation

The correlation between SMBS and SPTS is 0.80, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.80
Correlation (All Time) Calculated using the full available price history since Nov 20, 2024	0.74

The correlation between SMBS and SPTS has been stable across timeframes, ranging from 0.74 to 0.80 - a consistent structural relationship.

Return for Risk

SMBS vs. SPTS — 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

SPTS

SPTS Risk / Return Rank: 84
SPTS Sharpe Ratio Rank: 79
SPTS Sortino Ratio Rank: 91
SPTS Omega Ratio Rank: 87
SPTS Calmar Ratio Rank: 79
SPTS Martin Ratio Rank: 82

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. SPTS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Mortgage-Backed Securities ETF (SMBS) and SPDR Portfolio Short Term Treasury ETF (SPTS). 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	SPTS	Difference
Sharpe ratio Return per unit of total volatility	1.64	2.63	-0.99
Sortino ratio Return per unit of downside risk	2.42	4.47	-2.05
Omega ratio Gain probability vs. loss probability	1.30	1.55	-0.25
Calmar ratio Return relative to maximum drawdown	2.41	4.13	-1.72
Martin ratio Return relative to average drawdown	8.21	16.52	-8.31
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. SPTS - Sharpe Ratio Comparison

The current SMBS Sharpe Ratio is 1.64, which is lower than the SPTS Sharpe Ratio of 2.63. The chart below compares the historical Sharpe Ratios of SMBS and SPTS, 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	SPTS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.64	2.63	-0.99
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.92	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.98	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.18	0.49	+0.69

Drawdowns

SMBS vs. SPTS - Drawdown Comparison

The maximum SMBS drawdown since its inception was -3.20%, smaller than the maximum SPTS drawdown of -5.83%. Use the drawdown chart below to compare losses from any high point for SMBS and SPTS.

Drawdown Indicators

	SMBS	SPTS	Difference
Max Drawdown Largest peak-to-trough decline	-3.20%	-5.83%	+2.63%
Max Drawdown (1Y) Largest decline over 1 year	-2.83%	-0.84%	-1.99%
Max Drawdown (3Y) Largest decline over 3 years	—	-0.96%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-5.71%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-5.71%	—
Current Drawdown Current decline from peak	-1.33%	-0.28%	-1.05%
Average Drawdown Average peak-to-trough decline	-0.84%	-1.72%	+0.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.83%	0.21%	+0.62%

Volatility

SMBS vs. SPTS - Volatility Comparison

Schwab Mortgage-Backed Securities ETF (SMBS) has a higher volatility of 1.55% compared to SPDR Portfolio Short Term Treasury ETF (SPTS) at 0.34%. This indicates that SMBS's price experiences larger fluctuations and is considered to be riskier than SPTS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMBS	SPTS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.55%	0.34%	+1.21%
Volatility (6M) Calculated over the trailing 6-month period	3.03%	0.86%	+2.17%
Volatility (1Y) Calculated over the trailing 1-year period	4.15%	1.32%	+2.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.86%	1.98%	+2.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.86%	1.72%	+3.14%

SMBS vs. SPTS - Expense Ratio Comparison

Both SMBS and SPTS 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. SPTS - Dividend Comparison

SMBS's dividend yield for the trailing twelve months is around 5.17%, more than SPTS's 3.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
SPTS SPDR Portfolio Short Term Treasury ETF	3.91%	3.99%	4.25%	3.61%	1.27%	0.19%	0.70%	2.21%	2.04%	1.20%	0.95%	0.83%

Frequently Asked Questions

Can I hold both SMBS and SPTS in my portfolio?

SMBS and SPTS have a correlation of 0.80, 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 SPTS?

SMBS has higher volatility (1.55%) compared to SPTS (0.34%). In terms of maximum drawdown, SMBS dropped -3.20% vs SPTS's -5.83%.

Which ETF is better, SMBS or SPTS?

On 1-year performance, SMBS leads with 6.78% vs 3.45% for SPTS. Both ETFs have the same 0.03% expense ratio. On volatility, SPTS has been the lower-risk option at 0.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMBS or SPTS?

Over the 1-year period, SMBS has performed better with a 6.78% return vs 3.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMBS or SPTS?

SMBS and SPTS have the same expense ratio: 0.03% per year.

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

SMBS has the higher dividend yield at 5.17%, compared with 3.91% for SPTS.

What is the main difference between SMBS and SPTS?

SMBS is categorized as Mortgage Backed Securities, while SPTS is Government Bonds. SMBS tracks Bloomberg US MBS Float Adjusted Total Return Index, while SPTS tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: Charles Schwab and State Street.

Which has better risk-adjusted returns?

SPTS currently has the higher Sharpe Ratio (2.63 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.