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- Upturn Summary
- Fund Details
Upturn AI Summary
Schwab Mortgage-Backed Securities ETF(SMBS)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for SMBS
11/06/2026: SMBS (2-star) has a low Upturn Star Rating. Not recommended to BUY.
The Schwab Mortgage-Backed Securities ETF (SMBS) provides efficient, low-cost access to the U.S. agency mortgage-backed securities market by tracking the Bloomberg US MBS Index. Its primary strengths are its low expense ratio, high-quality government-backed holdings, and reliance on a major issuer. It serves best as a defensive, income-generating component of a diversified portfolio. Key risks include sensitivity to rising interest rates and mortgage prepayment patterns. It is an ideal fit for conservative, income-focused investors who prioritize capital preservation and stable yield.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
ETF holdings, costs, diversification, valuation, risks, and market conditions provide supporting context about the fund.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Weak fit | This fund is designed for income and stability rather than the aggressive capital appreciation sought by growth investors. |
| Momentum investor | Weak fit | The fund typically exhibits low volatility and is not intended to capitalize on short-term market price momentum. |
| Value investor | Mixed fit | While it offers defensive value, it lacks the upside potential often sought by equity-focused value investors. |
| Dividend/Income investor | Strong fit | The fund provides regular interest income derived from high-quality agency mortgage-backed securities. |
| Low-risk investor | Strong fit | The backing of government-sponsored enterprises significantly lowers credit risk, making it suitable for conservative portfolios. |
Investor Profile
Ideal Investor Profile
Conservative investors or those seeking a 'core' fixed-income holding to stabilize a portfolio through government-backed securities.
Suitability
Best suited for long-term investors seeking income and principal preservation rather than short-term traders.
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Volatility | Medium | As a fixed-income instrument, its price fluctuates primarily in response to changes in market interest rates. |
| Market risk | Medium | Broad economic shifts, particularly in the housing and interest rate markets, impact the fund's net asset value. |
| Concentration | High | The portfolio is highly concentrated in a single asset class, agency mortgage-backed securities. |
| Tracking/expense | Low | The fund utilizes a passive indexing strategy with a very low expense ratio, minimizing tracking error. |
| Liquidity | Low | The underlying assets are highly liquid, though the ETF's own trading volume may vary. |
| Business/sector quality | Low / none | The securities are generally guaranteed or issued by U.S. government agencies, providing high credit quality. |
Risk Analysis
Volatility
Historical volatility is moderate, characteristic of high-quality, fixed-rate mortgage-backed securities, influenced heavily by interest rate cycles.
Market Risk
Primary risks include interest rate risk and prepayment risk, as the underlying mortgages are subject to refinancing based on prevailing home loan rates.
What the ETF Owns
| Exposure Type | Exposure | Weight (%) | Retail Investor Read |
|---|---|---|---|
| Fixed-income type | U.S. Agency Mortgage-Backed Securities | 99 | This exposure provides investors with steady income and low credit risk backed by government-sponsored enterprises. |
| Cash/collateral | Cash and Cash Equivalents | 1 | Minor cash holdings are maintained for liquidity and to manage daily fund inflows and outflows. |
Analysis of Past Performance
Type ETF | Historic Profit 5.47% | Avg. Invested days 64 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  4.0 | ETF Returns Performance  2.0 |
| Profits based on simulation | Last Close 11/06/2026 |
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