SMBS vs VYM
Schwab Mortgage-Backed Securities ETF vs Vanguard High Dividend Yield ETF
Which is better, SMBS or VYM?
Intermediate Term Bond against Large Cap Value.
SMBS has a lower expense ratio. VYM led over 1Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SMBS | VYM |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.04% |
| AUM | $6.5B | $81.6B |
| Dividend Yield | 5.23% | 2.22% |
| Holdings | 4,120 | 613 |
| YTD Return | -1.80% | +10.23%Best |
| 1Y Return | -0.45% | +14.28%Best |
| 3Y Return (annualized) | - | +17.50% |
| 5Y Return (annualized) | - | +11.60% |
| Volatility (annualized) | 3.9%Best | 10.9% |
| Max Drawdown | -3.9%Best | -14.5% |
| $10,000 over 1.8 years | $10,534 | $12,548Best |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Intermediate Term Bond | Large Cap Value |
| Inception | Nov 19, 2024 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 1.8 years row, are measured over the window both funds cover: Nov 19, 2024 to Sep 23, 2026 (1.8 years).
SMBS vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.8 years both funds cover.
SMBS vs VYM Performance
Schwab Mortgage-Backed Securities ETF (SMBS) is an ETF from Charles Schwab Asset Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year SMBS returned -0.45% while VYM returned +14.28%. Year to date, SMBS is down 1.80% versus a gain of 10.23% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 10.9% compared with 3.9% 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 -3.9% for SMBS and -14.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.54. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SMBS charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, SMBS currently yields 5.23% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 8 holdings in SMBS and 557 in VYM, totalling 2.0% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 8 positions we hold weights for in SMBS and 557 in VYM, against full books of 4,120 and 613.
You are not choosing between two funds in isolation.
Whichever of SMBS and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SMBS or VYM?
SMBS has an expense ratio of 0.03% while VYM charges 0.04%. SMBS is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, SMBS or VYM?
Over the past year SMBS returned -0.45% vs +14.28% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), SMBS annualized +2.93% vs +13.44% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SMBS or VYM?
VYM has been the more volatile fund at 10.9% annualized versus 3.9% for SMBS. Worst drawdown: SMBS -3.9% vs VYM -14.5%.
Should I hold both SMBS and VYM?
SMBS and VYM have a monthly-return correlation of 0.54, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SMBS or VYM?
SMBS yields 5.23% while VYM yields 2.22%, so SMBS currently pays the higher dividend yield.
Is VYM better than SMBS?
SMBS has a lower expense ratio. VYM led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.