IVV vs SMBS
iShares Core S&P 500 ETF vs Schwab Mortgage-Backed Securities ETF
Quick Verdict
IVV delivered stronger 1-year returns. SMBS offers more diversification with 4175 holdings.
Side-by-Side Comparison
| Metric | IVV | SMBS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $865.2B | $6.5B | |
| Dividend Yield | 1.09% | 5.14% | |
| Holdings | 508 | 4,175 | |
| YTD Return | +14.50% | +0.41% | |
| 1Y Return | +22.02% | +3.56% | |
| 3Y Return (annualized) | +21.80% | - | |
| 5Y Return (annualized) | +13.37% | - | |
| Volatility (annualized) | 15.1% | 3.6% | |
| Max Drawdown | -56.5% | -3.2% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Nov 19, 2024 |
IVV vs SMBS Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Schwab Mortgage-Backed Securities ETF (SMBS) is a ETF from Charles Schwab Asset Management. Over the past year IVV returned +22.02% while SMBS returned +3.56%. Year to date, IVV is up 14.50% versus a gain of 0.41% for SMBS.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 3.6% for SMBS. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.5% for IVV and -3.2% for SMBS. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while SMBS charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, IVV currently yields 1.09% against 5.14% for SMBS.
Frequently Asked Questions
Which is cheaper, IVV or SMBS?
IVV has an expense ratio of 0.03% while SMBS charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, IVV or SMBS?
Over the past year IVV returned +22.02% vs +3.56% for SMBS, so IVV leads on 1-year performance. Over the longest common window we track (2 years), IVV annualized +7.07% vs +4.47% for SMBS. Past performance does not guarantee future results.
Which is riskier, IVV or SMBS?
IVV has been the more volatile fund at 15.1% annualized versus 3.6% for SMBS. Worst drawdown: IVV -56.5% vs SMBS -3.2%.
Should I hold both IVV and SMBS?
IVV and SMBS have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, IVV or SMBS?
IVV yields 1.09% while SMBS yields 5.14%, so SMBS currently pays the higher dividend yield.
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