DEED vs. VMBS
DEED (First Trust TCW Securitized Plus ETF) and VMBS (Vanguard Mortgage-Backed Securities ETF) are both Mortgage Backed Securities funds. DEED is actively managed, while VMBS is passively managed. Over the past 5 years, DEED returned 0.21%/yr vs 0.48%/yr for VMBS. A 0.77 correlation means they provide meaningful diversification when combined. DEED charges 0.65%/yr vs 0.04%/yr for VMBS.
Performance
DEED vs. VMBS - Performance Comparison
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Returns By Period
In the year-to-date period, DEED achieves a 0.32% return, which is significantly lower than VMBS's 0.66% return.
DEED
- 1D
- -0.10%
- 1M
- 0.21%
- YTD
- 0.32%
- 6M
- 0.49%
- 1Y
- 6.52%
- 3Y*
- 4.92%
- 5Y*
- 0.21%
- 10Y*
- —
VMBS
- 1D
- -0.15%
- 1M
- 0.33%
- YTD
- 0.66%
- 6M
- 0.85%
- 1Y
- 6.93%
- 3Y*
- 4.60%
- 5Y*
- 0.48%
- 10Y*
- 1.35%
DEED vs. VMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
DEED First Trust TCW Securitized Plus ETF | 0.32% | 8.91% | 3.19% | 6.43% | -16.03% | 1.62% | 4.71% |
VMBS Vanguard Mortgage-Backed Securities ETF | 0.66% | 8.36% | 1.70% | 5.34% | -11.90% | -1.28% | 0.34% |
Correlation
The correlation between DEED and VMBS is 0.83, 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 | 0.83 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.87 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.80 |
Correlation (All Time) Calculated using the full available price history since May 1, 2020 | 0.77 |
The correlation between DEED and VMBS shifts across timeframes, from 0.77 (all time) to 0.87 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
DEED vs. VMBS — Risk / Return Rank
DEED
VMBS
DEED vs. VMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust TCW Securitized Plus ETF (DEED) 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.
| DEED | VMBS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.07 | ||
| Sortino ratioReturn per unit of downside risk | +0.06 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.29 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.06 | 2.59 | -0.53 |
| Martin ratioReturn relative to average drawdown | 5.79 | 8.68 | -2.90 |
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
| DEED | VMBS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.66 | 1.59 | +0.07 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.03 | 0.07 | -0.04 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.25 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.19 | 0.46 | -0.26 |
Drawdowns
DEED vs. VMBS - Drawdown Comparison
The maximum DEED drawdown since its inception was -19.96%, which is greater than VMBS's maximum drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for DEED and VMBS.
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Drawdown Indicators
| DEED | VMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.96% | -17.47% | -2.49% |
Max Drawdown (1Y)Largest decline over 1 year | -3.18% | -2.68% | -0.50% |
Max Drawdown (3Y)Largest decline over 3 years | -8.50% | -7.65% | -0.85% |
Max Drawdown (5Y)Largest decline over 5 years | -19.96% | -17.12% | -2.84% |
Max Drawdown (10Y)Largest decline over 10 years | — | -17.47% | — |
Current DrawdownCurrent decline from peak | -2.05% | -1.33% | -0.72% |
Average DrawdownAverage peak-to-trough decline | -6.62% | -2.49% | -4.13% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.13% | 0.80% | +0.33% |
Volatility
DEED vs. VMBS - Volatility Comparison
The current volatility for First Trust TCW Securitized Plus ETF (DEED) is 1.10%, while Vanguard Mortgage-Backed Securities ETF (VMBS) has a volatility of 1.62%. This indicates that DEED experiences smaller price fluctuations and is considered to be less risky 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
| DEED | VMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.10% | 1.62% | -0.52% |
Volatility (6M)Calculated over the trailing 6-month period | 2.87% | 3.16% | -0.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.94% | 4.37% | -0.43% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.54% | 6.77% | -0.23% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.97% | 5.40% | +0.57% |
DEED vs. VMBS - Expense Ratio Comparison
DEED has a 0.65% expense ratio, which is higher than VMBS's 0.04% expense ratio.
Dividends
DEED vs. VMBS - Dividend Comparison
DEED's dividend yield for the trailing twelve months is around 4.28%, more than VMBS's 4.19% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DEED First Trust TCW Securitized Plus ETF | 4.28% | 4.10% | 5.73% | 5.59% | 2.43% | 1.93% | 1.60% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VMBS Vanguard Mortgage-Backed Securities ETF | 4.19% | 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
DEED and VMBS have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VMBS has higher volatility (1.62%) compared to DEED (1.10%). In terms of maximum drawdown, DEED dropped -19.96% vs VMBS's -17.47%.
On 5-year performance, VMBS leads with 0.48% vs 0.21% for DEED. On fees, VMBS is cheaper at 0.04% per year. On volatility, DEED has been the lower-risk option at 1.10%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VMBS has performed better with a 0.48% return vs 0.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VMBS is cheaper with a 0.04% expense ratio, compared with 0.65% for DEED.
DEED has the higher dividend yield at 4.28%, compared with 4.19% for VMBS.
They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.65% for DEED and 0.04% for VMBS.
DEED currently has the higher Sharpe Ratio (1.66 vs 1.59), 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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