Vanguard Mortgage-Backed Securities ETF (VMBS)

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Vanguard Mortgage-Backed Securities ETF (VMBS) is up 0.8% since the beginning of the year. VMBS is currently trading at $47 per share. Investors who bought $1,000 worth of VMBS shares 5 years ago would now be looking at an investment worth $1,029.

Vanguard Mortgage-Backed Securities ETF (VMBS) has returned 0.83% so far this year and 6.16% over the past 12 months. Over the last ten years, VMBS has returned 1.34% per year, falling short of the S&P 500 Index benchmark, which averaged 13.88% annually.

Based on dividend-adjusted daily data since Nov 23, 2009, VMBS's average daily return is +0.01%, while the average monthly return is +0.18%. At this rate, an investment would double in approximately 32.1 years.

Historically, 60% of months were positive and 41% were negative. The best month was Nov 2023 with a return of +5.3%, while the worst month was Sep 2022 at -5.0%. The longest winning streak lasted 12 consecutive months, and the longest losing streak was 9 months.

On a daily basis, VMBS closed higher 51% of trading days. The best single day was Mar 24, 2020 with a return of +2.9%, while the worst single day was Mar 12, 2020 at -3.2%.

Vanguard Mortgage-Backed Securities ETF has an annualized alpha of 1.96%, beta of 0.02, and R2 of 0.01 versus S&P 500 Index. Calculated based on daily prices since November 23, 2009.

• This ETF participates in less of S&P 500 Index's moves in both directions, but captures a larger share of gains (9.53%) than losses (7.46%) - typical of diversified or defensive assets.
• Beta of 0.02 may look defensive, but with R2 of 0.01 this ETF is largely uncorrelated with S&P 500 Index - low beta reflects independence, not downside protection. See the Volatility section for a true picture of this ETF's risk.
• R2 of 0.01 means this ETF moves largely independently of S&P 500 Index - capture ratios reflect limited market correlation rather than active downside protection. Consider using a more representative benchmark.

VMBS has an expense ratio of 0.04%, which is considered low.

VMBS ranks 44 for risk / return — on par with similar ETFs. You're getting a typical balance of risk and reward. Not a standout, but not a red flag either — a reasonable choice if other factors align with your goals.

Vanguard Mortgage-Backed Securities ETF provided a 4.18% dividend yield over the last twelve months, with an annual payout of $1.95 per share. The fund has been increasing its distributions for 4 consecutive years.

The table displays the monthly dividend distributions for Vanguard Mortgage-Backed Securities ETF. The dividends shown in the table have been adjusted to account for any splits that may have occurred.

The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.

The table below displays the maximum drawdowns of the Vanguard Mortgage-Backed Securities ETF. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.

The maximum drawdown for the Vanguard Mortgage-Backed Securities ETF was 17.47%, occurring on Oct 20, 2022. Recovery took 749 trading sessions.

The current Vanguard Mortgage-Backed Securities ETF drawdown is 1.16%.

The chart below shows the rolling one-month volatility.