SMBS vs. VMBS
Compare and contrast key facts about Schwab Mortgage-Backed Securities ETF (SMBS) and Vanguard Mortgage-Backed Securities ETF (VMBS).
SMBS and VMBS are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SMBS is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US MBS Float Adjusted Total Return Index. It was launched on Nov 18, 2024. VMBS is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. MBS Index. It was launched on Nov 19, 2009. Both SMBS and VMBS are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Performance
SMBS vs. VMBS - Performance Comparison
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SMBS vs. VMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
SMBS Schwab Mortgage-Backed Securities ETF | 0.36% | 8.15% | -0.07% |
VMBS Vanguard Mortgage-Backed Securities ETF | 0.41% | 8.36% | -0.02% |
Returns By Period
In the year-to-date period, SMBS achieves a 0.36% return, which is significantly lower than VMBS's 0.41% return.
SMBS
- 1D
- 0.20%
- 1M
- -1.67%
- YTD
- 0.36%
- 6M
- 1.92%
- 1Y
- 5.33%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VMBS
- 1D
- 0.21%
- 1M
- -1.57%
- YTD
- 0.41%
- 6M
- 2.06%
- 1Y
- 5.79%
- 3Y*
- 4.29%
- 5Y*
- 0.49%
- 10Y*
- 1.41%
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SMBS vs. VMBS - Expense Ratio Comparison
SMBS has a 0.03% expense ratio, which is lower than VMBS'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%.
Return for Risk
SMBS vs. VMBS — Risk / Return Rank
SMBS
VMBS
SMBS vs. VMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Mortgage-Backed Securities ETF (SMBS) and Vanguard Mortgage-Backed Securities ETF (VMBS). 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 | VMBS | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.12 | 1.16 | -0.04 |
Sortino ratioReturn per unit of downside risk | 1.61 | 1.67 | -0.06 |
Omega ratioGain probability vs. loss probability | 1.20 | 1.21 | -0.01 |
Calmar ratioReturn relative to maximum drawdown | 1.94 | 1.95 | -0.01 |
Martin ratioReturn relative to average drawdown | 5.61 | 6.10 | -0.50 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SMBS | VMBS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.12 | 1.16 | -0.04 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.07 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.26 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.27 | 0.46 | +0.81 |
Correlation
The correlation between SMBS and VMBS is 0.94, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Dividends
SMBS vs. VMBS - Dividend Comparison
SMBS's dividend yield for the trailing twelve months is around 4.80%, more than VMBS's 4.23% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SMBS Schwab Mortgage-Backed Securities ETF | 4.80% | 4.83% | 0.50% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VMBS Vanguard Mortgage-Backed Securities ETF | 4.23% | 4.20% | 3.94% | 3.31% | 2.35% | 1.02% | 2.01% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% |
Drawdowns
SMBS vs. VMBS - Drawdown Comparison
The maximum SMBS drawdown since its inception was -3.20%, smaller than the maximum VMBS drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for SMBS and VMBS.
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Drawdown Indicators
| SMBS | VMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -3.20% | -17.47% | +14.27% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -3.00% | +0.17% |
Max Drawdown (5Y)Largest decline over 5 years | — | -17.12% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -17.47% | — |
Current DrawdownCurrent decline from peak | -1.67% | -1.57% | -0.10% |
Average DrawdownAverage peak-to-trough decline | -0.77% | -2.51% | +1.74% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.98% | 0.96% | +0.02% |
Volatility
SMBS vs. VMBS - Volatility Comparison
Schwab Mortgage-Backed Securities ETF (SMBS) and Vanguard Mortgage-Backed Securities ETF (VMBS) have volatilities of 1.82% and 1.90%, 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 | VMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.82% | 1.90% | -0.08% |
Volatility (6M)Calculated over the trailing 6-month period | 2.75% | 2.89% | -0.14% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.77% | 5.00% | -0.23% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.92% | 6.71% | -1.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.92% | 5.37% | -0.45% |