SMBS vs VTI
Schwab Mortgage-Backed Securities ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI delivered stronger 1-year returns. SMBS offers more diversification with 4,272 holdings.
Side-by-Side Comparison
| Metric | SMBS | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $6.5B | $666.9B | |
| Dividend Yield | 5.21% | 1.07% | |
| Holdings | 4,272 | 3,543 | |
| YTD Return | +0.48% | +12.65% | |
| 1Y Return | +3.92% | +21.39% | |
| 3Y Return (annualized) | - | +21.54% | |
| 5Y Return (annualized) | - | +12.11% | |
| Volatility (annualized) | 3.6% | 15.3% | |
| Max Drawdown | -3.2% | -56.6% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2024 | May 24, 2001 |
SMBS vs VTI Performance
Schwab Mortgage-Backed Securities ETF (SMBS) is a ETF from Charles Schwab Asset Management and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year SMBS returned +3.92% while VTI returned +21.39%. Year to date, SMBS is up 0.48% versus a gain of 12.65% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SMBS charges 0.03% per year while VTI charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, SMBS currently yields 5.21% against 1.07% for VTI.
Holdings Overlap
SMBS and VTI share 0 holdings out of 2920 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 VTI?
SMBS has an expense ratio of 0.03% while VTI charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, SMBS or VTI?
Over the past year SMBS returned +3.92% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (2 years), SMBS annualized +4.45% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, SMBS or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 3.6% for SMBS. Worst drawdown: SMBS -3.2% vs VTI -56.6%.
Should I hold both SMBS and VTI?
SMBS and VTI have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SMBS and VTI?
SMBS and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2920 unique securities.
Which pays a higher dividend, SMBS or VTI?
SMBS yields 5.21% while VTI yields 1.07%, so SMBS currently pays the higher dividend yield.
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