XTWY vs. SMBS

Last updated Jun 24, 2026

XTWY (BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF) and SMBS (Schwab Mortgage-Backed Securities ETF) are both exchange-traded funds - XTWY is a Government Bonds fund tracking the Bloomberg US Treasury 20 Year Target Duration Index, while SMBS is a Mortgage Backed Securities fund tracking the Bloomberg US MBS Float Adjusted Total Return Index. Both are passively managed. Over the past year, XTWY returned 3.85% vs 5.64% for SMBS. Their correlation of 0.83 suggests significant overlap in exposure. XTWY charges 0.12%/yr vs 0.03%/yr for SMBS.

Performance

XTWY vs. SMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF (XTWY) and Schwab Mortgage-Backed Securities ETF (SMBS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XTWY achieves a 0.98% return, which is significantly higher than SMBS's 0.78% return.

XTWY

• 1D: 0.11%
• 1M: 2.79%
• YTD: 0.98%
• 6M: 0.48%
• 1Y: 3.85%
• 3Y*: -3.26%
• 5Y*: —
• 10Y*: —

SMBS

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

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

XTWY vs. SMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
XTWY BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF	0.98%	2.52%	-2.74%
SMBS Schwab Mortgage-Backed Securities ETF	0.78%	8.15%	-0.16%

Correlation

The correlation between XTWY and SMBS is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.81
Correlation (All Time) Calculated using the full available price history since Nov 19, 2024	0.83

The correlation between XTWY and SMBS has been stable across timeframes, ranging from 0.81 to 0.83 - a consistent structural relationship.

Return for Risk

XTWY vs. SMBS — Risk / Return Rank

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

XTWY

XTWY Risk / Return Rank: 13
XTWY Sharpe Ratio Rank: 14
XTWY Sortino Ratio Rank: 13
XTWY Omega Ratio Rank: 12
XTWY Calmar Ratio Rank: 13
XTWY Martin Ratio Rank: 13

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

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.

XTWY vs. SMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF (XTWY) 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.

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.

	XTWY	SMBS	Difference
Sharpe ratio: Return per unit of total volatility	0.34	1.38	-1.04
Sortino ratio: Return per unit of downside risk	0.57	2.02	-1.45
Omega ratio: Gain probability vs. loss probability	1.06	1.25	-0.18
Calmar ratio: Return relative to maximum drawdown	0.41	2.00	-1.59
Martin ratio: Return relative to average drawdown	0.94	6.44	-5.50

XTWY vs. SMBS - Sharpe Ratio Comparison

The current XTWY Sharpe Ratio is 0.34, which is lower than the SMBS Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of XTWY and SMBS, 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

XTWY vs. SMBS - Drawdown Comparison

The maximum XTWY drawdown since its inception was -25.92%, which is greater than SMBS's maximum drawdown of -3.20%. Use the drawdown chart below to compare losses from any high point for XTWY and SMBS.

Drawdown Indicators

	XTWY	SMBS	Difference
Max Drawdown Largest peak-to-trough decline	-25.92%	-3.20%	-22.72%
Max Drawdown (1Y) Largest decline over 1 year	-9.48%	-2.83%	-6.65%
Max Drawdown (3Y) Largest decline over 3 years	-22.16%	—	—
Current Drawdown Current decline from peak	-14.11%	-1.26%	-12.85%
Average Drawdown Average peak-to-trough decline	-12.25%	-0.85%	-11.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.09%	0.88%	+3.21%

Volatility

XTWY vs. SMBS - Volatility Comparison

BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF (XTWY) has a higher volatility of 2.69% compared to Schwab Mortgage-Backed Securities ETF (SMBS) at 1.26%. This indicates that XTWY's price experiences larger fluctuations and is considered to be riskier than SMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XTWY	SMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.69%	1.26%	+1.43%
Volatility (6M) Calculated over the trailing 6-month period	7.87%	3.13%	+4.74%
Volatility (1Y) Calculated over the trailing 1-year period	11.38%	4.12%	+7.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.54%	4.85%	+12.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.54%	4.85%	+12.69%

XTWY vs. SMBS - Expense Ratio Comparison

XTWY has a 0.13% 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%.

Dividends

XTWY vs. SMBS - Dividend Comparison

XTWY's dividend yield for the trailing twelve months is around 4.63%, less than SMBS's 5.16% yield.

Position	TTM	2025	2024	2023	2022
SMBS Schwab Mortgage-Backed Securities ETF	5.16%	4.83%	0.50%	0.00%	0.00%
XTWY BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF	4.63%	4.56%	4.65%	3.86%	1.08%

Frequently Asked Questions

Can I hold both XTWY and SMBS in my portfolio?

XTWY and SMBS have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XTWY or SMBS?

XTWY has higher volatility (2.69%) compared to SMBS (1.26%). In terms of maximum drawdown, XTWY dropped -25.92% vs SMBS's -3.20%.

Which ETF is better, XTWY or SMBS?

On 1-year performance, SMBS leads with 5.64% vs 3.85% for XTWY. On fees, SMBS is cheaper at 0.03% per year. On volatility, SMBS has been the lower-risk option at 1.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XTWY or SMBS?

Over the 1-year period, SMBS has performed better with a 5.64% return vs 3.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XTWY or SMBS?

SMBS is cheaper with a 0.03% expense ratio, compared with 0.12% for XTWY.

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

SMBS has the higher dividend yield at 5.16%, compared with 4.63% for XTWY.

What is the main difference between XTWY and SMBS?

XTWY is categorized as Government Bonds, while SMBS is Mortgage Backed Securities. XTWY tracks Bloomberg US Treasury 20 Year Target Duration Index, while SMBS tracks Bloomberg US MBS Float Adjusted Total Return Index. They also come from different issuers: BondBloxx and Charles Schwab. Their fees differ too: 0.12% for XTWY and 0.03% for SMBS.

Which has better risk-adjusted returns?

SMBS currently has the higher Sharpe Ratio (1.38 vs 0.34), 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.