IYT vs. VMBS
IYT (iShares Transportation Average ETF) and VMBS (Vanguard Mortgage-Backed Securities ETF) are both exchange-traded funds - IYT is a Transportation Equities fund tracking the Dow Jones Transportation Average 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, IYT returned 11.13%/yr vs 1.35%/yr for VMBS. At a correlation of -0.05, they often move in opposite directions. IYT charges 0.42%/yr vs 0.04%/yr for VMBS.
Performance
IYT vs. VMBS - Performance Comparison
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Returns By Period
In the year-to-date period, IYT achieves a 13.27% return, which is significantly higher than VMBS's 0.92% return. Over the past 10 years, IYT has outperformed VMBS with an annualized return of 11.13%, while VMBS has yielded a comparatively lower 1.35% annualized return.
IYT
- 1D
- -0.78%
- 1M
- 3.24%
- YTD
- 13.27%
- 6M
- 12.06%
- 1Y
- 27.89%
- 3Y*
- 13.54%
- 5Y*
- 6.34%
- 10Y*
- 11.13%
VMBS
- 1D
- 0.09%
- 1M
- 0.63%
- YTD
- 0.92%
- 6M
- 1.02%
- 1Y
- 6.00%
- 3Y*
- 4.52%
- 5Y*
- 0.57%
- 10Y*
- 1.35%
IYT vs. VMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYT iShares Transportation Average ETF | 13.27% | 11.48% | 4.10% | 24.62% | -21.74% | 26.41% | 14.20% | 20.11% | -12.87% | 18.89% |
VMBS Vanguard Mortgage-Backed Securities ETF | 0.92% | 8.36% | 1.70% | 5.34% | -11.90% | -1.28% | 3.76% | 6.19% | 0.91% | 2.47% |
Correlation
The correlation between IYT and VMBS is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.29 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.15 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.02 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | -0.05 |
The correlation between IYT and VMBS shifts across timeframes, from -0.05 (all time) to 0.29 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
IYT vs. VMBS — Risk / Return Rank
IYT
VMBS
IYT vs. VMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Transportation Average ETF (IYT) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| IYT | VMBS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.04 | ||
| Sortino ratioReturn per unit of downside risk | -0.14 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.25 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.32 | 2.24 | +0.08 |
| Martin ratioReturn relative to average drawdown | 7.51 | 7.12 | +0.39 |
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Drawdowns
IYT vs. VMBS - Drawdown Comparison
The maximum IYT drawdown since its inception was -60.39%, which is greater than VMBS's maximum drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for IYT and VMBS.
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Drawdown Indicators
| IYT | VMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -60.39% | -17.47% | -42.92% |
Max Drawdown (1Y)Largest decline over 1 year | -12.09% | -2.68% | -9.41% |
Max Drawdown (3Y)Largest decline over 3 years | -26.35% | -7.65% | -18.70% |
Max Drawdown (5Y)Largest decline over 5 years | -29.15% | -17.12% | -12.03% |
Max Drawdown (10Y)Largest decline over 10 years | -41.28% | -17.47% | -23.81% |
Current DrawdownCurrent decline from peak | -2.97% | -1.07% | -1.90% |
Average DrawdownAverage peak-to-trough decline | -9.30% | -2.49% | -6.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.72% | 0.84% | +2.88% |
Volatility
IYT vs. VMBS - Volatility Comparison
iShares Transportation Average ETF (IYT) has a higher volatility of 7.09% compared to Vanguard Mortgage-Backed Securities ETF (VMBS) at 1.19%. This indicates that IYT'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
| IYT | VMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.09% | 1.19% | +5.90% |
Volatility (6M)Calculated over the trailing 6-month period | 16.27% | 3.27% | +13.00% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.70% | 4.30% | +16.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.40% | 6.78% | +15.62% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.16% | 5.41% | +17.75% |
IYT vs. VMBS - Expense Ratio Comparison
IYT has a 0.42% expense ratio, which is higher than VMBS's 0.04% expense ratio.
Dividends
IYT vs. VMBS - Dividend Comparison
IYT's dividend yield for the trailing twelve months is around 0.93%, less than VMBS's 4.17% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYT iShares Transportation Average ETF | 0.93% | 1.00% | 1.08% | 1.26% | 1.40% | 0.77% | 0.93% | 1.29% | 1.35% | 0.92% | 0.96% | 1.28% |
VMBS Vanguard Mortgage-Backed Securities ETF | 4.17% | 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
IYT and VMBS have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYT has higher volatility (7.09%) compared to VMBS (1.19%). In terms of maximum drawdown, IYT dropped -60.39% vs VMBS's -17.47%.
On 10-year performance, IYT leads with 11.13% vs 1.35% for VMBS. On fees, VMBS is cheaper at 0.04% per year. On volatility, VMBS has been the lower-risk option at 1.19%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYT has performed better with a 11.13% return vs 1.35%. 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 0.42% for IYT.
VMBS has the higher dividend yield at 4.17%, compared with 0.93% for IYT.
IYT is categorized as Transportation Equities, while VMBS is Mortgage Backed Securities. IYT tracks Dow Jones Transportation Average Index, while VMBS tracks Barclays Capital U.S. MBS Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.42% for IYT and 0.04% for VMBS.
VMBS currently has the higher Sharpe Ratio (1.40 vs 1.36), 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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