SMBS vs. VETZ

Last updated Jun 24, 2026

SMBS (Schwab Mortgage-Backed Securities ETF) and VETZ (Academy Veteran Bond ETF) are both Mortgage Backed Securities funds. SMBS is passively managed, while VETZ is actively managed. Over the past year, SMBS returned 5.64% vs 6.05% for VETZ. A 0.77 correlation means they provide meaningful diversification when combined. SMBS charges 0.03%/yr vs 0.35%/yr for VETZ.

Performance

SMBS vs. VETZ - Performance Comparison

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

Returns By Period

In the year-to-date period, SMBS achieves a 0.78% return, which is significantly lower than VETZ's 1.08% return.

SMBS

• 1D: 0.06%
• 1M: 0.69%
• YTD: 0.78%
• 6M: 0.76%
• 1Y: 5.64%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VETZ

• 1D: 0.08%
• 1M: 1.07%
• YTD: 1.08%
• 6M: 1.27%
• 1Y: 6.05%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SMBS vs. VETZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SMBS Schwab Mortgage-Backed Securities ETF	0.78%	8.15%	-0.16%
VETZ Academy Veteran Bond ETF	1.08%	8.02%	0.29%

Correlation

The correlation between SMBS and VETZ is 0.75, 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	0.75
Correlation (All Time) Calculated using the full available price history since Nov 19, 2024	0.77

The correlation between SMBS and VETZ has been stable across timeframes, ranging from 0.75 to 0.77 - a consistent structural relationship.

Return for Risk

SMBS vs. VETZ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SMBS

SMBS Risk / Return Rank: 41
SMBS Sharpe Ratio Rank: 41
SMBS Sortino Ratio Rank: 42
SMBS Omega Ratio Rank: 40
SMBS Calmar Ratio Rank: 42
SMBS Martin Ratio Rank: 42

VETZ

VETZ Risk / Return Rank: 42
VETZ Sharpe Ratio Rank: 39
VETZ Sortino Ratio Rank: 40
VETZ Omega Ratio Rank: 36
VETZ Calmar Ratio Rank: 49
VETZ Martin Ratio Rank: 47

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. VETZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Mortgage-Backed Securities ETF (SMBS) and Academy Veteran Bond ETF (VETZ). 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	VETZ	Difference
Sharpe ratio: Return per unit of total volatility	1.38	1.28	+0.09
Sortino ratio: Return per unit of downside risk	2.02	1.92	+0.10
Omega ratio: Gain probability vs. loss probability	1.25	1.23	+0.02
Calmar ratio: Return relative to maximum drawdown	2.00	2.22	-0.22
Martin ratio: Return relative to average drawdown	6.44	7.33	-0.88

SMBS vs. VETZ - Sharpe Ratio Comparison

The current SMBS Sharpe Ratio is 1.38, which is comparable to the VETZ Sharpe Ratio of 1.28. The chart below compares the historical Sharpe Ratios of SMBS and VETZ, 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. VETZ - Drawdown Comparison

The maximum SMBS drawdown since its inception was -3.20%, smaller than the maximum VETZ drawdown of -5.16%. Use the drawdown chart below to compare losses from any high point for SMBS and VETZ.

Drawdown Indicators

	SMBS	VETZ	Difference
Max Drawdown Largest peak-to-trough decline	-3.20%	-5.16%	+1.96%
Max Drawdown (1Y) Largest decline over 1 year	-2.83%	-2.73%	-0.10%
Current Drawdown Current decline from peak	-1.26%	-0.93%	-0.33%
Average Drawdown Average peak-to-trough decline	-0.85%	-1.30%	+0.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	0.83%	+0.05%

Volatility

SMBS vs. VETZ - Volatility Comparison

Schwab Mortgage-Backed Securities ETF (SMBS) and Academy Veteran Bond ETF (VETZ) have volatilities of 1.26% and 1.21%, 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.

Volatility by Period

	SMBS	VETZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.26%	1.21%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	3.13%	3.36%	-0.23%
Volatility (1Y) Calculated over the trailing 1-year period	4.12%	4.73%	-0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.85%	6.12%	-1.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.85%	6.12%	-1.27%

SMBS vs. VETZ - Expense Ratio Comparison

SMBS has a 0.03% expense ratio, which is lower than VETZ's 0.35% expense ratio.

Dividends

SMBS vs. VETZ - Dividend Comparison

SMBS's dividend yield for the trailing twelve months is around 5.16%, less than VETZ's 6.14% yield.

Position	TTM	2025	2024	2023
SMBS Schwab Mortgage-Backed Securities ETF	5.16%	4.83%	0.50%	0.00%
VETZ Academy Veteran Bond ETF	6.14%	6.14%	5.89%	1.88%

Frequently Asked Questions

Can I hold both SMBS and VETZ in my portfolio?

SMBS and VETZ have a correlation of 0.75, 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 VETZ?

SMBS has higher volatility (1.26%) compared to VETZ (1.21%). In terms of maximum drawdown, SMBS dropped -3.20% vs VETZ's -5.16%.

Which ETF is better, SMBS or VETZ?

On 1-year performance, VETZ leads with 6.05% vs 5.64% for SMBS. On fees, SMBS is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMBS or VETZ?

Over the 1-year period, VETZ has performed better with a 6.05% return vs 5.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMBS or VETZ?

SMBS is cheaper with a 0.03% expense ratio, compared with 0.35% for VETZ.

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

VETZ has the higher dividend yield at 6.14%, compared with 5.16% for SMBS.

What is the main difference between SMBS and VETZ?

They also come from different issuers: Charles Schwab and Academy. Their fees differ too: 0.03% for SMBS and 0.35% for VETZ.

Which has better risk-adjusted returns?

SMBS currently has the higher Sharpe Ratio (1.38 vs 1.28), 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.