Schwab Strategic Trust - Schwab Mortgage-Backed Securities ETF

Frequently Asked Questions About SMBS

What does SMBS invest in?

SMBS offers representative exposure to US mortgage pass-through securities. The index consists of fixed-rate, investment grade, agency mortgage-backed securities guaranteed by Ginnie Mae, Fannie Mae, and Freddie Mac. The index construction starts by initially grouping individual to-be-announced (TBA) deliverable mortgage-backed securities into pool aggregates based on program, coupon, and vintage. These pool aggregates must have a minimum of $1 billion currently outstanding and a weighted average maturity of at least 1 year to be included in the index. The index constituents are market value-weighted and reconstituted on the last business day of each month.

What is the expense ratio of SMBS?

Schwab Strategic Trust - Schwab Mortgage-Backed Securities ETF (SMBS) charges an expense ratio of 0.03%. This is the annual fee deducted from fund assets to cover management and operations.

How big is SMBS?

Schwab Strategic Trust - Schwab Mortgage-Backed Securities ETF (SMBS) manages $6.39B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is SMBS actively managed or an index fund?

SMBS's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.

When was SMBS launched?

Schwab Strategic Trust - Schwab Mortgage-Backed Securities ETF (SMBS) launched in November 2024 and is managed by Schwab.

How has SMBS performed?

SMBS's total return (price change plus reinvested distributions) is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.