Schwab Mortgage-Backed Securities ETF

SCHWAB STRATEGIC TRUST · 1 share class

U.S. bond index ETF
One fund, 1 share class:SMBS
$6.42B NAV
4,197 positions · as of 2026-05-31 · filed 2026-07-24

Fund classification

Classified from what the fund holds · as of 2026 Q2

Schwab Mortgage-Backed Securities ETF is a U.S. bond index ETF that tracks the Bloomberg US MBS Float Adjusted Total Return Index.

Asset class
Bonds
Region
United States
Management
Index (passive)
Fund type
ETF
Credit quality
Investment grade
Rate sensitivity
Intermediate duration

Fund profile

As filed in the prospectus · 2025 Q4

The funds goal is to track as closely as possible, before fees and expenses, the total return of an index composed of investment-grade mortgage-backed securities issued and/or guaranteed by U.S. government agencies.

Strategy · summarised

The fund tracks the Bloomberg US MBS Float Adjusted Total Return Index, which comprises fixed-rate agency mortgage-backed securities issued or guaranteed by Ginnie Mae, Fannie Mae, and Freddie Mac, using sampling techniques to hold a subset of index securities expected to perform similarly to the index as a whole. Because the fund samples rather than holds all index constituents, its performance may diverge from the index. The fund invests at least 90% of assets in index securities, including through to-be-announced transactions, with the remainder in high-quality liquid investments and derivatives to manage interest rate and credit risk.

Expenses
0.03%one share class
Share classExpense ratio
SMBS0.03%

Portfolio turnover 20.00% · as of 2025 Q4

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

99.66%
of net assets
Securitized97.98%
Cash & short-term1.68%

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 129 new4 exited

Largest new: Freddie Mac ×7, Fannie Mae

Largest exited: Freddie Mac ×3, Fannie Mae

Return profile

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

1-year
+5.58%
3-year
18 of 36 months
5-year
18 of 60 months
Volatility
3.43%
Worst 3-yr fall
Cumulative return· Nov 2024 – Apr 2026

May 2026 has been filed since the trailing figures were struck, so it is not in the table above or the curve — every figure here shares one cut-off, which is what makes them comparable with other funds.

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-05-31

Avg coupon
4.01%
Avg maturity
24.88 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

0%
floating
Fixed rate100.0%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y10y+
<1y0.0%
1-3y0.0%
3-5y0.1%
5-10y2.2%
10y+97.6%
Flagged holdings
Defaulted: none reported
In arrears: none reported
Paid in kind: none reported

Based on what filers reported; a filer that never reported a flag also reads as none.

Risk profile

Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2

More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.

Interest-rate duration
5.07 yr
approx. move per 100bp
Credit-spread duration
5.11 yr
approx. move per 100bp
If rates and spreads both rise 100bp

Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.

≈ -10.0%
of value
Credit spreads50%
Interest rates50%

Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+5.11
yrs total
Investment grade+5.11 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate5.07 yr total
3 mo30 yr
3 mo0.04 yr1%
1 yr0.58 yr11%
5 yr1.41 yr28%
10 yr2.41 yr47%
30 yr0.64 yr13%
Credit spread5.11 yr total
3 mo30 yr
3 mo0.01 yr0%
1 yr0.00 yr0%
5 yr0.01 yr0%
10 yr0.23 yr5%
30 yr4.86 yr95%

The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.

Show the numbers
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo+0.04+0.01+0.00$8.1k$0
1 yr+0.58+0.00+0.00$214$0
5 yr+1.41+0.01+0.00$3.5k$0
10 yr+2.41+0.23+0.00$150.6k$0
30 yr+0.64+4.86+0.00$3.12m$0

Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
State Street Institutional US Government Money Market FundGVMXX1.68%$107.55M
Government National Mortgage Association5.00% · due 2054-11-200.47%$30.33M
Freddie Mac5.50% · due 2054-10-010.35%$22.68M
Freddie Mac2.50% · due 2054-01-010.29%$18.61M
Fannie Mae2.00% · due 2051-05-010.28%$18.02M
Freddie Mac2.00% · due 2052-02-010.27%$17.54M
Freddie Mac2.00% · due 2050-11-010.26%$16.46M
Freddie Mac5.00% · due 2056-04-010.25%$16.10M
Freddie Mac2.00% · due 2052-03-010.25%$15.85M
Government National Mortgage Association5.00% · due 2056-01-200.24%$15.37M
Showing 10 of 4,197Sign in to see more

Top 10 positions are 4.34% of net assets, top 25 7.47%, across 4 issuers.

See more of this fund's book

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