Schwab Mortgage-Backed Securities ETF (SMBS)

Schwab Mortgage-Backed Securities ETF (SMBS) is a passively managed fixed-income fund from Charles Schwab Asset Management. It tracks an index of U.S. agency mortgage-backed securities, which are pools of residential mortgages guaranteed by Ginnie Mae, Fannie Mae or Freddie Mac.

The fund provides broad exposure to the agency MBS market, a large segment of the U.S. investment-grade bond market, through a portfolio of fixed-rate mortgage pass-through securities across different coupons and issuance years. Its returns reflect interest income and changes in mortgage prices, which are affected by interest rates and homeowner prepayment behavior.