SMBS vs VOO
Schwab Mortgage-Backed Securities ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO delivered stronger 1-year returns. SMBS offers more diversification with 4,272 holdings.
Side-by-Side Comparison
| Metric | SMBS | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $6.5B | $997.4B | |
| Dividend Yield | 5.21% | 1.08% | |
| Holdings | 4,272 | 509 | |
| YTD Return | +0.48% | +12.25% | |
| 1Y Return | +3.92% | +20.92% | |
| 3Y Return (annualized) | - | +21.79% | |
| 5Y Return (annualized) | - | +13.05% | |
| Volatility (annualized) | 3.6% | 14.1% | |
| Max Drawdown | -3.2% | -34.3% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2024 | Sep 7, 2010 |
SMBS vs VOO Performance
Schwab Mortgage-Backed Securities ETF (SMBS) is a ETF from Charles Schwab Asset Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year SMBS returned +3.92% while VOO returned +20.92%. Year to date, SMBS is up 0.48% versus a gain of 12.25% for VOO.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -3.2% for SMBS and -34.3% for VOO. 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
SMBS charges 0.03% per year while VOO charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, SMBS currently yields 5.21% against 1.08% for VOO.
Holdings Overlap
SMBS and VOO share 0 holdings out of 638 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SMBS or VOO?
SMBS has an expense ratio of 0.03% while VOO charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, SMBS or VOO?
Over the past year SMBS returned +3.92% vs +20.92% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (2 years), SMBS annualized +4.45% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, SMBS or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 3.6% for SMBS. Worst drawdown: SMBS -3.2% vs VOO -34.3%.
Should I hold both SMBS and VOO?
SMBS and VOO have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SMBS and VOO?
SMBS and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 638 unique securities.
Which pays a higher dividend, SMBS or VOO?
SMBS yields 5.21% while VOO yields 1.08%, so SMBS currently pays the higher dividend yield.
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