LMBS vs SMBS: Grades, Fees and Holdings Compared

First Trust Low Duration Opportunities ETF

LMBSCNasdaq

Schwab Mortgage-Backed Securities ETF

SMBSANYSE Arca

Overlap

0.0%by weight

Expense ratio

SMBS −0.63pt a year

LMBS0.66%SMBS0.03%

Avg volume · 30D

SMBS 1.7×the volume

LMBS595KSMBS1.01M

LMBS vs SMBS Performance

Oct 31, 2025 – Oct 30, 2026

+2.2%LMBS+0.3%SMBS

Expense ratio: LMBS 0.66%; SMBS 0.03%, better
Fund size: LMBS $6.58B; SMBS $6.45B
1Y total return: LMBS +2.2%, better; SMBS +0.3%
Yield (12M): LMBS 4.16%; SMBS 5.32%, better
Holdings: LMBS 1163; SMBS 4343
Avg volume (30D): LMBS 595K sh; SMBS 1.01M sh, better
NAV per share: LMBS $48.99; SMBS $24.67
52W range

ETF.net Grade

Pillar letters and Scores for LMBS, SMBS, with each pillar’s weight
Pillar	LMBS	SMBS
Cost30% weight	F8	A94Higher
Mission25% weight	C40	B61Higher
Risk15% weight	A74Higher	D35
Tradability15% weight	A85Higher	B68
Holdings10% weight	C48	A86Higher
Durability5% weight	A78Higher	B60

Rank among Mortgage-Backed Securities funds

How we build Categories ›

Same Category. LMBS and SMBS are both graded against the same 24 Mortgage-Backed Securities funds, so their Grades compare head to head.

Mortgage-Backed Securities⁠

Category · 24 funds

See all 24 ›

SMBS ranks 4th and LMBS 13th of 24 funds in the Mortgage-Backed Securities Category.

Rank 1ASPMBState Street SPDR Portfolio Mortgage Backed Bond ETFScore 75
Rank 2AMBBiShares MBS ETFScore 73
Rank 3AVMBSVanguard Mortgage-Backed Securities ETFScore 72
Rank 4ASMBSSchwab Mortgage-Backed Securities ETFScore 70
Rank 5BJMTGJPMorgan Mortgage-Backed Securities ETFScore 63
Rank 12CVETZAcademy Veteran Impact ETFScore 46
Rank 13CLMBSFirst Trust Low Duration Opportunities ETFScore 45
Rank 14CVABSVirtus Newfleet Securitized Income ETFScore 43

Our read on each fund

ETF.net Research

LMBSCFirst Trust Low Duration Opportunities ETF

SMBSASchwab Mortgage-Backed Securities ETF

In short

LMBS Most mortgage-bond ETFs just clone an index. LMBS hires a manager to hunt current income across roughly 1,100 mortgage positions, keeps the duration short, and pays out monthly. Active where the category is mostly autopilot.

SMBS No data

Stated mandate

LMBS The fund is actively managed and primarily seeks current income, with capital appreciation as a secondary objective.

SMBS No data

Why people hold it

LMBS Actively managed, not index-bound: the team pursues current income first, with capital appreciation as a secondary goal, so the mix reflects live judgment on mortgage paper.
Income arrives monthly rather than quarterly, spread across roughly 1,100 bond positions instead of a handful of big-ticket holdings.
Multi-billion-dollar fund that trades actively, so getting in and out is generally straightforward rather than a hunt for a counterparty.
Running since 2014, giving the active approach a decade-plus history through a full swing in interest rates.

SMBS No data

Worth knowing

LMBS Active talent is not cheap: 0.66% a year against a 0.35% median for mortgage-bond ETFs, while index rivals VMBS (0.03%) and MBB (0.04%) charge a rounding error.
No benchmark to lean on. What you own shifts with the manager's calls on which mortgage bonds to hold, which is the whole point and the whole risk.
This is a focused mortgage-bond sleeve, not a broad core bond fund, so the exposure stays concentrated in one corner of the credit market.

SMBS No data

Full LMBS profile⁠

Full SMBS profile⁠

LMBS vs SMBS Holdings

How LMBS and SMBS differ

Overlap by weight

0.0%

Shared holdings make up 0.0% of LMBS and 0.0% of SMBS.

Level by level

Asset classFixed Income, Equity0.0%
Holdings0 in both0.0%
Countryby domicile100%

Sector

No Sector split for LMBS and SMBS.

Country, concentration and asset class

Country by domicile

Country weights in LMBS and SMBS, widest gap first
Country	More in LMBSMore in SMBS	LMBS	SMBS
United States	Same weight	100.0%	100.0%

Concentration

Weight in the 10 largest Holdings

LMBS40.5%
SMBS3.9%

Securities held

LMBS1,162
SMBS4,343

Asset class

LMBS: Fixed Income
SMBS: Equity

Holdings

Only in LMBS1,162
In both0
Only in SMBS4,343

Only in LMBS

1,162 securities, 100% of LMBS by weight

US 2YR NOTE (CBT) Dec2619.56%
Fannie Mae or Freddie Mac TBA, 6%, due 06/01/20564.29%
GNMA TBA, 6.50%, due 01/01/20563.89%
Fannie Mae or Freddie Mac TBA, 6.50%, due 04/01/20552.27%
Fannie Mae or Freddie Mac TBA, 3%, due 01/01/20522.10%
Fannie Mae or Freddie Mac TBA, 3.50%, due 02/01/20522.02%
GNMA G2 788850, 6%, due 09/20/20661.98%
Freddiemac Strip Series 462, Class AK, 4.65%, due 07/25/20311.63%
Fannie Mae or Freddie Mac TBA, 3.50%, due 01/01/20521.58%
U.S. Treasury Bill, 0%, due 11/03/20261.43%
U.S. Treasury Bill, 0%, due 11/05/20261.43%
GNMA G2 MA7366, 2%, due 05/20/20511.43%
Fannie Mae or Freddie Mac TBA, 5.50%, due 04/01/20561.41%
GNMA TBA, 4.50%, due 05/01/20561.39%
GNMA G2 788612, 6%, due 11/20/20651.36%
Fannie Mae or Freddie Mac TBA, 6%, due 11/01/20371.23%
U.S. Treasury Bill, 0%, due 11/10/20261.23%
U.S. Treasury Bill, 0%, due 11/12/20261.23%
U.S. Treasury Inflation Indexed Note, 0.125%, due 04/15/20271.21%
Fannie Mae FN FA5201, 4%, due 03/01/20501.16%
Freddie Mac FR SL1523, 3.50%, due 07/01/20501.13%
Fannie Mae FN FM2972, 4%, due 12/01/20441.05%
U.S. Treasury Bond, 5%, due 05/15/20451.03%
U.S. Treasury Bill, 0%, due 11/24/20261.02%
U.S. Treasury Bond, 5.125%, due 08/15/20460.95%
Fannie Mae or Freddie Mac TBA, 4%, due 06/01/20560.92%
Fannie Mae FN FA7128, 5.50%, due 08/01/20550.91%
Fannie Mae FN FA2450, 4%, due 03/01/20470.88%
U.S. Treasury Bill, 0%, due 11/17/20260.82%
U.S. Treasury Bill, 0%, due 11/19/20260.82%
U.S. Treasury Bill, 0%, due 12/01/20260.82%
U.S. Treasury Bill, 0%, due 12/15/20260.82%
U.S. Treasury Bill, 0%, due 12/22/20260.81%
Fannie Mae FN AL9394, 3%, due 11/01/20460.81%
Fannie Mae Series 2026-5, Class CF, Variable rate, due 02/25/20560.80%
Freddie Mac Series 5638, Class AF, Variable rate, due 03/25/20560.78%
Fannie Mae FN FS8780, 3%, due 07/01/20500.76%
Fannie Mae FN FA1024, 2.50%, due 05/01/20510.76%
U.S. Treasury Bond, 0%, due 11/15/20370.72%
U.S. Treasury Note, 4.625%, due 08/15/20360.71%
GNMA G2 788892, 6%, due 10/20/20660.69%
U.S. Treasury Bond, 5%, due 05/15/20460.69%
Freddie Mac FR ZT0779, 3%, due 09/01/20470.65%
Fannie Mae Series 2022-66, Class CF, Variable rate, due 10/25/20520.62%
Freddie Mac Series 5221, Class YC, 4%, due 05/25/20520.62%
U.S. Treasury Note, 4.125%, due 02/15/20270.61%
U.S. Treasury Bill, 0%, due 12/08/20260.61%
U.S. Treasury Bill, 0%, due 12/24/20260.61%
U.S. Treasury Bill, 0%, due 01/12/20270.61%
GNMA Series 2022-63, Class AZ, 3%, due 08/20/20510.60%

Only in SMBS

4,343 securities, 100% of SMBS by weight

Ssc Government Mm Gvmxx1.31%
GNMA2 30YR 5.00% 11/20/2054 (BBG01NZQMR80)0.44%
Fhlmc 30YR Umbs Super 5.50% 10/01/2054 (BBG01NYFN109)0.32%
Fhlmc 30YR Umbs Super 2.50% 01/01/2054 (BBG020YCJVV0)0.31%
Fhlmc 30YR Umbs 5.00% 04/01/2056 (BBG01ZQXS4M7)0.29%
Fhlmc 30YR Umbs Super 2.00% 02/01/2052 (BBG013B19FS4)0.28%
Fnma 30YR Umbs 5.50% 04/01/2053 (BBG01F33L1J9)0.25%
GNMA2 30YR 5.00% 05/20/2056 (BBG01ZVZ4RL2)0.25%
Fnma 30YR Umbs 2.00% 05/01/2051 (BBG00ZHCZ133)0.24%
Fhlmc 30YR Umbs Super 2.00% 11/01/2050 (BBG00WGK3T46)0.24%
GNMA2 30YR 5.00% 01/20/2056 (BBG01XK7V325)0.24%
Fhlmc 30YR Umbs 5.00% 03/01/2056 (BBG01YX6GQM5)0.23%
GNMA2 30YR 5.00% 07/20/2056 (BBG0218B7LX2)0.23%
GNMA2 30YR 5.00% 12/20/2055 (BBG01WXTXHP7)0.22%
Fhlmc 30YR Umbs Super 2.50% 01/01/2052 (BBG016008MY0)0.21%
GNMA2 30YR 5.50% 06/20/2055 (BBG01SJ8MLF2)0.20%
GNMA2 30YR 5.00% 04/20/2056 (BBG01Z997ZP0)0.20%
GNMA2 30YR 5.00% 11/20/2055 (BBG01WCVFMG4)0.19%
Fhlmc 30YR Umbs 5.00% 03/01/2056 (BBG021983ZP0)0.19%
Fhlmc 30YR Umbs Super 2.00% 02/01/2051 (BBG00Y2HT9V0)0.19%
GNMA2 30YR 5.00% 10/20/2053 (BBG01H70ZSP6)0.19%
Fhlmc 30YR Umbs 6.00% 08/01/2055 (BBG01VH3BJN6)0.18%
Fnma 30YR Umbs 1.50% 01/01/2051 (BBG00Y2N8VB3)0.18%
GNMA2 30YR 2.00% 01/20/2051 (BBG00XM8VJ81)0.18%
Fnma 30YR Umbs Super 5.50% 03/01/2056 (BBG02149FF01)0.18%
GNMA2 30YR 5.50% 04/20/2054 (BBG01KRRJJN8)0.18%
GNMA2 30YR 5.00% 12/20/2054 (BBG01PH23K11)0.18%
Fhlmc 30YR Umbs Super 4.50% 12/01/2054 (BBG01Q51M614)0.17%
GNMA2 30YR 4.00% 09/20/2052 (BBG017RS0430)0.17%
GNMA2 30YR 2.00% 11/20/2050 (BBG00WC0HNK4)0.17%
GNMA2 30YR 5.00% 01/20/2055 (BBG01Q0N1RB7)0.17%
Fhlmc 30YR Umbs Super 5.00% 12/01/2052 (BBG019M600Y3)0.17%
GNMA2 30YR 2.00% 02/20/2051 (BBG00XZZP6J0)0.17%
Fnma 30YR Umbs Super 3.00% 08/01/2051 (BBG01249GBZ0)0.17%
Fnma 30YR Umbs Super 2.50% 04/01/2052 (BBG01H6YXH06)0.17%
Fnma 30YR Umbs 2.00% 02/01/2051 (BBG00YHWVS82)0.17%
Fnma 30YR Umbs Super 4.50% 01/01/2054 (BBG01NRW0XJ5)0.17%
Fnma 30YR Umbs Super 4.00% 08/01/2052 (BBG0194C3RZ7)0.17%
Fhlmc 30YR Umbs Super 2.00% 03/01/2051 (BBG00YDFS7Y4)0.17%
Fhlmc 30YR Umbs Super 5.50% 09/01/2055 (BBG01XH7PCY1)0.16%
Fnma 30YR Umbs 2.00% 07/01/2051 (BBG01107SVX5)0.16%
Fhlmc 30YR Umbs Super 2.00% 07/01/2051 (BBG01TG2L1Z9)0.16%
Fnma 30YR Umbs 6.00% 04/01/2055 (BBG01S4FGCM1)0.16%
GNMA2 30YR 2.00% 04/20/2051 (BBG00YPHW6M7)0.16%
GNMA2 30YR 2.50% 08/20/2050 (BBG00TGXYGY6)0.16%
Fnma 30YR Umbs 2.00% 12/01/2050 (BBG00XS6NZ55)0.16%
GNMA2 30YR 4.50% 10/20/2052 (BBG018GZYKB2)0.16%
GNMA2 30YR 5.50% 08/20/2054 (BBG01MLZDQL4)0.16%
Fnma 30YR Umbs 6.00% 02/01/2054 (BBG01KFL4C28)0.16%
GNMA2 30YR 5.50% 12/20/2054 (BBG01PH23JP8)0.16%

Weight gaps

LMBS and SMBS share no securities.

All 1,248 LMBS holdings⁠All 4,343 SMBS holdings⁠

How we measure overlap

Each holding counts at its smaller weight in the two funds, summed over the full Holdings. Sector, country and asset class use the same rule on each fund’s split. Cash, FX and derivative lines stay out of the counts. Two bond funds get no overlap figure.

LMBS vs SMBS Cost

Overpaying LMBS vs SMBS

$12,258

On $10,000 over 30 years. 7% growth a year before fees, expense ratio only.

LMBS 0.66%
$12,896
SMBS 0.03%
$638

Amount$10,000

Years30 years

Cost over time

LMBS 0.66%
SMBS 0.03%
Overpaying

Year by year

Year	LMBS	SMBS	Overpaying
10	$1,180	$55	$1,125
20	$4,504	$216	$4,288
30	$12,896	$638	$12,258

Expense ratio

0.66%LMBS
0.03%SMBS, cheaper

SMBS0.03%LMBS0.66%

0.03%0.86%

Middle half of Mortgage-Backed Securities funds
Median 0.38%

SMBS cheapest of 24 funds

LMBS 22nd cheapest of 24 funds

LMBS vs SMBS Dividends

Last 12 months to Oct 30, 2026

Yield (12M): LMBS 4.16%; SMBS 5.32%, better
Payout (12M): LMBS $2.04; SMBS $1.31
Last payment: LMBS $0.17; SMBS $0.11
Ex-dividend: LMBS Oct 21, 2026; SMBS Oct 1, 2026
Paid on: LMBS Pays Nov 2, 2026; SMBS Oct 7, 2026
Frequency: LMBS Monthly; SMBS Monthly

Distribution history

Per share, 2023 to 2026, same scale for both

LMBSMonthly · 46 paymentsAll LMBS payments⁠

SMBSMonthly · 22 paymentsAll SMBS payments⁠

LMBS vs SMBS Risk

Fall from peak · 5 years

This chart needs five years of history for both funds.

Risk facts

VolatilityStd dev, 3 years: LMBS 2.9%SMBS 4.9%since Dec 2024
Return per unit of riskSharpe ratio, 3 years: LMBS 0.48SMBS −0.16since Dec 2024
Worst fallMax drawdown, 5 years: LMBS −5.7%SMBS −5.2%since Nov 2024
Market sensitivityBeta, 5 years: LMBS 0.46SMBS 0.07; Market = 1

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