XTWO vs. SMBS
Compare and contrast key facts about Bondbloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) and Schwab Mortgage-Backed Securities ETF (SMBS).
XTWO and SMBS are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XTWO is a passively managed fund by BondBloxx that tracks the performance of the Bloomberg US Treasury 2 Year Target Duration Index. It was launched on Sep 13, 2022. 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. Both XTWO and SMBS 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
XTWO vs. SMBS - Performance Comparison
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XTWO vs. SMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
XTWO Bondbloxx Bloomberg Two Year Target Duration US Treasury ETF | 0.21% | 5.17% | 0.53% |
SMBS Schwab Mortgage-Backed Securities ETF | 0.47% | 8.15% | -0.07% |
Returns By Period
In the year-to-date period, XTWO achieves a 0.21% return, which is significantly lower than SMBS's 0.47% return.
XTWO
- 1D
- -0.06%
- 1M
- -0.39%
- YTD
- 0.21%
- 6M
- 1.18%
- 1Y
- 3.66%
- 3Y*
- 3.96%
- 5Y*
- —
- 10Y*
- —
SMBS
- 1D
- 0.11%
- 1M
- -1.15%
- YTD
- 0.47%
- 6M
- 1.88%
- 1Y
- 5.07%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
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XTWO vs. SMBS - Expense Ratio Comparison
XTWO has a 0.05% expense ratio, which is higher than SMBS's 0.03% expense ratio. However, 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
XTWO vs. SMBS — Risk / Return Rank
XTWO
SMBS
XTWO vs. SMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Bondbloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) and Schwab Mortgage-Backed Securities ETF (SMBS). 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.
| XTWO | SMBS | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.36 | 1.07 | +1.29 |
Sortino ratioReturn per unit of downside risk | 3.73 | 1.54 | +2.19 |
Omega ratioGain probability vs. loss probability | 1.49 | 1.19 | +0.30 |
Calmar ratioReturn relative to maximum drawdown | 4.09 | 1.93 | +2.17 |
Martin ratioReturn relative to average drawdown | 14.75 | 5.53 | +9.22 |
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
| XTWO | SMBS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.36 | 1.07 | +1.29 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.77 | 1.28 | +0.49 |
Correlation
The correlation between XTWO and SMBS is 0.73, 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
XTWO vs. SMBS - Dividend Comparison
XTWO's dividend yield for the trailing twelve months is around 4.09%, less than SMBS's 4.82% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
XTWO Bondbloxx Bloomberg Two Year Target Duration US Treasury ETF | 4.09% | 4.24% | 4.54% | 4.07% | 1.13% |
SMBS Schwab Mortgage-Backed Securities ETF | 4.82% | 4.83% | 0.50% | 0.00% | 0.00% |
Drawdowns
XTWO vs. SMBS - Drawdown Comparison
The maximum XTWO drawdown since its inception was -1.73%, smaller than the maximum SMBS drawdown of -3.20%. Use the drawdown chart below to compare losses from any high point for XTWO and SMBS.
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Drawdown Indicators
| XTWO | SMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.73% | -3.20% | +1.47% |
Max Drawdown (1Y)Largest decline over 1 year | -0.91% | -2.83% | +1.92% |
Current DrawdownCurrent decline from peak | -0.58% | -1.56% | +0.98% |
Average DrawdownAverage peak-to-trough decline | -0.40% | -0.77% | +0.37% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.25% | 0.99% | -0.74% |
Volatility
XTWO vs. SMBS - Volatility Comparison
The current volatility for Bondbloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) is 0.56%, while Schwab Mortgage-Backed Securities ETF (SMBS) has a volatility of 1.83%. This indicates that XTWO experiences smaller price fluctuations and is considered to be less risky than SMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XTWO | SMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.56% | 1.83% | -1.27% |
Volatility (6M)Calculated over the trailing 6-month period | 0.91% | 2.75% | -1.84% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.56% | 4.77% | -3.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.20% | 4.91% | -2.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.20% | 4.91% | -2.71% |