Vanguard Mortgage-Backed Securities ETF (VMBS) belongs to the Mortgage Backed Securities category. Below you'll find alternative ETFs from the same category, ranked by key criteria, plus funds that investors commonly compare with VMBS. Use the tables to find lower-cost options, better risk-adjusted returns, or a closer substitute for your current allocation.
Cheapest Alternatives to VMBS
VMBS charges 0.04% annually. There is 1 ETF in the Mortgage Backed Securities category with a lower expense ratio, going as low as 0.03%.
| Symbol | Name | Expense Ratio | AUM | Inception | |
|---|---|---|---|---|---|
| Schwab Mortgage-Backed Securities ETF | 0.03% | — | Nov 2024 | VMBS vs SMBS | |
| SPDR Portfolio Mortgage Backed Bond ETF | 0.04% | 7.00B | Jan 2009 | VMBS vs SPMB | |
| iShares MBS Bond ETF | 0.04% | 38.93B | Mar 2007 | VMBS vs MBB | |
| Simplify MBS ETF | 0.15% | 1.49B | Nov 2023 | VMBS vs MTBA | |
| iShares GNMA Bond ETF | 0.15% | 421.25M | Feb 2012 | VMBS vs GNMA |
Best Risk-Adjusted Alternatives to VMBS
VMBS has a PortfoliosLab risk / return rank of 41. There are 6 ETFs in the Mortgage Backed Securities category with higher risk-adjusted ranks, going as high as 96.
| Symbol | Name | Risk / Return Rank | AUM | Inception | |
|---|---|---|---|---|---|
| Franklin Short Duration U.S. Government ETF | 96 | 301.85M | Nov 2013 | VMBS vs FTSD | |
| First Trust Low Duration Mortgage Opportunities ET... | 91 | 6.35B | Nov 2014 | VMBS vs LMBS | |
| Virtus Newfleet ABS/MBS ETF | 85 | 112.17M | Feb 2021 | VMBS vs VABS | |
| JPMorgan Mortgage-Backed Securities ETF | 46 | 6.79B | Aug 2000 | VMBS vs JMTG | |
| First Trust TCW Securitized Plus ETF | 43 | 64.17M | Apr 2020 | VMBS vs DEED |
Top Performing VMBS Alternatives (YTD)
VMBS is at -0.12% YTD. There are 11 ETFs in the Mortgage Backed Securities category with higher YTD returns, going as high as 4.51%.
| Symbol | Name | YTD Return | AUM | Inception | |
|---|---|---|---|---|---|
| Regan Fixed Rate MBS ETF | 4.51% | 13.94M | Apr 2025 | VMBS vs MBSX | |
| Nuveen Securitized Income ETF | 2.58% | 207.24M | Sep 2025 | VMBS vs NSCI | |
| Virtus Newfleet ABS/MBS ETF | 2.04% | 112.17M | Feb 2021 | VMBS vs VABS | |
| First Trust Low Duration Mortgage Opportunities ET... | 1.39% | 6.35B | Nov 2014 | VMBS vs LMBS | |
| Franklin Short Duration U.S. Government ETF | 1.24% | 301.85M | Nov 2013 | VMBS vs FTSD |
Lowest Volatility Alternatives to VMBS
VMBS has 4.29% 1-year volatility. There are 17 ETFs in the Mortgage Backed Securities category with lower 1-year volatility, going as low as 1.30%.
| Symbol | Name | Volatility 1Y | AUM | Inception | |
|---|---|---|---|---|---|
| Nuveen Securitized Income ETF | 1.30% | 207.24M | Sep 2025 | VMBS vs NSCI | |
| Franklin Short Duration U.S. Government ETF | 1.36% | 301.85M | Nov 2013 | VMBS vs FTSD | |
| American Century Securitized Credit ETF | 1.83% | 20.00M | May 2026 | VMBS vs ASEC | |
| Virtus Newfleet ABS/MBS ETF | 1.89% | 112.17M | Feb 2021 | VMBS vs VABS | |
| First Trust Low Duration Mortgage Opportunities ET... | 1.97% | 6.35B | Nov 2014 | VMBS vs LMBS |
Lowest Drawdown Alternatives to VMBS
VMBS has a 1-year max drawdown of -2.68%. There are 7 ETFs in the Mortgage Backed Securities category with shallower 1-year drawdowns, going as shallow as -0.45%.
| Symbol | Name | Max Drawdown 1Y | AUM | Inception | |
|---|---|---|---|---|---|
| Franklin Short Duration U.S. Government ETF | -0.45% | 301.85M | Nov 2013 | VMBS vs FTSD | |
| Virtus Newfleet ABS/MBS ETF | -0.98% | 112.17M | Feb 2021 | VMBS vs VABS | |
| First Trust Low Duration Mortgage Opportunities ET... | -1.43% | 6.35B | Nov 2014 | VMBS vs LMBS | |
| FlexShares Disciplined Duration MBS Index Fund | -2.17% | 88.64M | Sep 2014 | VMBS vs MBSD | |
| iShares CMBS ETF | -2.44% | 472.92M | Feb 2012 | VMBS vs CMBS |
Other ETFs from Vanguard
The 10 most viewed Vanguard ETFs shown here include VOO, VTI, VGT and span 8 categories. AUM among these funds goes as high as $2T.
| Symbol | Name | Category | Risk / Return Rank | YTD Return | AUM | Inception | |
|---|---|---|---|---|---|---|---|
| Vanguard S&P 500 ETF | S&P 500 | 68 | 10.16% | 1.70T | Sep 2010 | VMBS vs VOO | |
| Vanguard Total Stock Market ETF | Large Cap Blend Equities | 67 | 10.49% | 2.30T | May 2001 | VMBS vs VTI | |
| Vanguard Information Technology ETF | Technology Equities | 52 | 20.36% | 169.20B | Mar 2004 | VMBS vs VGT | |
| Vanguard Total International Stock ETF | Global Equities | 71 | 12.75% | 651.00B | Jan 2011 | VMBS vs VXUS | |
| Vanguard Growth ETF | Large Cap Growth Equities | 28 | 5.02% | 378.80B | Jan 2004 | VMBS vs VUG | |
| Vanguard Total World Stock ETF | Global Equities | 70 | 11.15% | 97.00B | Jun 2008 | VMBS vs VT | |
| Vanguard High Dividend Yield ETF | Dividend | 90 | 14.21% | 96.20B | Nov 2006 | VMBS vs VYM | |
| Vanguard Total Bond Market ETF | Total Bond Market | 29 | -0.54% | 398.10B | Apr 2007 | VMBS vs BND | |
| Vanguard Dividend Appreciation ETF | Dividend | 75 | 9.71% | 129.60B | Apr 2006 | VMBS vs VIG | |
| Vanguard Value ETF | Large Cap Value Equities | 93 | 16.37% | 254.20B | Jan 2004 | VMBS vs VTV |
Often Compared With VMBS
Investors most often compare VMBS with VGIT, JMBS, FSEC. These 20 comparison targets span 17 categories, based on PortfoliosLab usage data.
Compare VMBS with Any Fund or Stock
Compare VMBS with any ETF, mutual fund, or stock using PortfoliosLab's comparison tool.
Pair VMBS with funds that move differently
Vanguard Mortgage-Backed Securities ETF alternatives help with substitution. Diversifiers are the next step when you want funds with lower historical correlation to VMBS.
Explore VMBS Diversifiers