SMBS vs VTI
Schwab Mortgage-Backed Securities ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, SMBS or VTI?
Intermediate Term Bond against Large Cap Blend.
VTI 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 | VTI |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $6.2B | $689.2B |
| Dividend Yield | 5.42% | 1.06% |
| Holdings | 4,330 | 3,524 |
| YTD Return | -2.06% | +13.02%Best |
| 1Y Return | -1.51% | +16.63%Best |
| 3Y Return (annualized) | - | +21.97% |
| 5Y Return (annualized) | - | +11.99% |
| Volatility (annualized) | 4.4%Best | 12.6% |
| Max Drawdown | -5.2%Best | -19.3% |
| $10,000 over 1.9 years | $10,519 | $13,182Best |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Intermediate Term Bond | Large Cap Blend |
| Inception | Nov 19, 2024 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Nov 19, 2024 to Oct 14, 2026 (1.9 years).
SMBS vs VTI 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 1.9 years both funds cover.
SMBS vs VTI Performance
Schwab Mortgage-Backed Securities ETF (SMBS) is an ETF from Charles Schwab Asset Management and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year SMBS returned -1.51% while VTI returned +16.63%. Year to date, SMBS is down 2.06% versus a gain of 13.02% for VTI.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 12.6% compared with 4.4% 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 -5.2% for SMBS and -19.3% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.25. They move largely independently of each other.
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 5.42% against 1.06% for VTI.
Holdings Overlap
We hold position weights for 95 holdings in SMBS and 3,441 in VTI, totalling 0.9% and 98.1% 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 95 positions we hold weights for in SMBS and 3,441 in VTI, against full books of 4,330 and 3,524.
You are not choosing between two funds in isolation.
Whichever of SMBS and VTI 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 VTI?
SMBS has an expense ratio of 0.03% while VTI charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, SMBS or VTI?
Over the past year SMBS returned -1.51% vs +16.63% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (2 years), SMBS annualized +2.70% vs +15.65% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SMBS or VTI?
VTI has been the more volatile fund at 12.6% annualized versus 4.4% for SMBS. Worst drawdown: SMBS -5.2% vs VTI -19.3%.
Should I hold both SMBS and VTI?
SMBS and VTI have a monthly-return correlation of 0.25, 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 VTI?
SMBS yields 5.42% while VTI yields 1.06%, so SMBS currently pays the higher dividend yield.
Is VTI better than SMBS?
VTI 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.