BLV vs. VMBS
BLV (Vanguard Long-Term Bond ETF) and VMBS (Vanguard Mortgage-Backed Securities ETF) are both exchange-traded funds - BLV is a Long-Term Bond fund tracking the Bloomberg U.S. Long Government/Credit Float Adjusted Index, while VMBS is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index. Both are passively managed. Over the past 10 years, BLV returned 0.81%/yr vs 1.31%/yr for VMBS. A 0.70 correlation means they provide meaningful diversification when combined. BLV charges 0.03%/yr vs 0.04%/yr for VMBS.
Performance
BLV vs. VMBS - Performance Comparison
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Returns By Period
In the year-to-date period, BLV achieves a -0.54% return, which is significantly lower than VMBS's 0.27% return. Over the past 10 years, BLV has underperformed VMBS with an annualized return of 0.81%, while VMBS has yielded a comparatively higher 1.31% annualized return.
BLV
- 1D
- -0.38%
- 1M
- -1.02%
- YTD
- -0.54%
- 6M
- -0.73%
- 1Y
- 5.53%
- 3Y*
- 1.83%
- 5Y*
- -3.70%
- 10Y*
- 0.81%
VMBS
- 1D
- 0.04%
- 1M
- -0.83%
- YTD
- 0.27%
- 6M
- 0.91%
- 1Y
- 6.83%
- 3Y*
- 4.37%
- 5Y*
- 0.40%
- 10Y*
- 1.31%
BLV vs. VMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BLV Vanguard Long-Term Bond ETF | -0.54% | 6.44% | -3.65% | 7.35% | -26.95% | -2.89% | 16.13% | 18.99% | -4.17% | 10.74% |
VMBS Vanguard Mortgage-Backed Securities ETF | 0.27% | 8.36% | 1.70% | 5.34% | -11.90% | -1.28% | 3.76% | 6.19% | 0.91% | 2.47% |
Correlation
The correlation between BLV and VMBS is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.88 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.90 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.86 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.77 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.70 |
The correlation between BLV and VMBS shifts across timeframes, from 0.70 (all time) to 0.90 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
BLV vs. VMBS — Risk / Return Rank
BLV
VMBS
BLV vs. VMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Bond ETF (BLV) and Vanguard Mortgage-Backed Securities ETF (VMBS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| BLV | VMBS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.91 | ||
| Sortino ratioReturn per unit of downside risk | -1.34 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.29 | -0.17 |
| Calmar ratioReturn relative to maximum drawdown | 0.97 | 2.55 | -1.58 |
| Martin ratioReturn relative to average drawdown | 2.42 | 8.40 | -5.98 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| BLV | VMBS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.69 | 1.60 | -0.91 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.29 | 0.06 | -0.35 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.07 | 0.24 | -0.18 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.36 | 0.45 | -0.09 |
Drawdowns
BLV vs. VMBS - Drawdown Comparison
The maximum BLV drawdown since its inception was -38.29%, which is greater than VMBS's maximum drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for BLV and VMBS.
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Drawdown Indicators
| BLV | VMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.29% | -17.47% | -20.82% |
Max Drawdown (1Y)Largest decline over 1 year | -5.73% | -2.68% | -3.05% |
Max Drawdown (3Y)Largest decline over 3 years | -15.16% | -7.65% | -7.51% |
Max Drawdown (5Y)Largest decline over 5 years | -36.27% | -17.12% | -19.15% |
Max Drawdown (10Y)Largest decline over 10 years | -38.29% | -17.47% | -20.82% |
Current DrawdownCurrent decline from peak | -24.76% | -1.71% | -23.05% |
Average DrawdownAverage peak-to-trough decline | -9.52% | -2.49% | -7.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.29% | 0.81% | +1.48% |
Volatility
BLV vs. VMBS - Volatility Comparison
Vanguard Long-Term Bond ETF (BLV) has a higher volatility of 2.39% compared to Vanguard Mortgage-Backed Securities ETF (VMBS) at 1.56%. This indicates that BLV's price experiences larger fluctuations and is considered to be riskier than VMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BLV | VMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.39% | 1.56% | +0.83% |
Volatility (6M)Calculated over the trailing 6-month period | 5.65% | 3.19% | +2.46% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.04% | 4.29% | +3.75% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.96% | 6.77% | +6.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.99% | 5.40% | +6.59% |
BLV vs. VMBS - Expense Ratio Comparison
BLV has a 0.03% expense ratio, which is lower than VMBS's 0.04% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
BLV vs. VMBS - Dividend Comparison
BLV's dividend yield for the trailing twelve months is around 4.84%, more than VMBS's 4.20% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BLV Vanguard Long-Term Bond ETF | 4.84% | 4.67% | 5.09% | 4.06% | 4.17% | 3.37% | 6.12% | 3.57% | 4.07% | 3.63% | 4.16% | 4.37% |
VMBS Vanguard Mortgage-Backed Securities ETF | 4.20% | 4.20% | 3.94% | 3.31% | 2.35% | 1.02% | 2.01% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% |
Frequently Asked Questions
BLV and VMBS have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BLV has higher volatility (2.39%) compared to VMBS (1.56%). In terms of maximum drawdown, BLV dropped -38.29% vs VMBS's -17.47%.
On 10-year performance, VMBS leads with 1.31% vs 0.81% for BLV. On fees, BLV is cheaper at 0.03% per year. On volatility, VMBS has been the lower-risk option at 1.56%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VMBS has performed better with a 1.31% return vs 0.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BLV is cheaper with a 0.03% expense ratio, compared with 0.04% for VMBS.
BLV has the higher dividend yield at 4.84%, compared with 4.20% for VMBS.
BLV is categorized as Long-Term Bond, while VMBS is Mortgage Backed Securities. BLV tracks Bloomberg U.S. Long Government/Credit Float Adjusted Index, while VMBS tracks Barclays Capital U.S. MBS Index. Their fees differ too: 0.03% for BLV and 0.04% for VMBS.
VMBS currently has the higher Sharpe Ratio (1.60 vs 0.69), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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