MBB vs. VAW
MBB (iShares MBS Bond ETF) and VAW (Vanguard Materials ETF) are both exchange-traded funds - MBB is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index, while VAW is a Materials fund tracking the MSCI US Investable Market Materials 25/50 Index. Both are passively managed. Over the past 10 years, MBB returned 1.24%/yr vs 9.87%/yr for VAW. At a correlation of -0.06, they often move in opposite directions. MBB charges 0.06%/yr vs 0.10%/yr for VAW.
Performance
MBB vs. VAW - Performance Comparison
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Returns By Period
In the year-to-date period, MBB achieves a 0.14% return, which is significantly lower than VAW's 9.07% return. Over the past 10 years, MBB has underperformed VAW with an annualized return of 1.24%, while VAW has yielded a comparatively higher 9.87% annualized return.
MBB
- 1D
- -0.04%
- 1M
- -0.93%
- YTD
- 0.14%
- 6M
- 0.83%
- 1Y
- 6.55%
- 3Y*
- 4.19%
- 5Y*
- 0.24%
- 10Y*
- 1.24%
VAW
- 1D
- -1.01%
- 1M
- -3.30%
- YTD
- 9.07%
- 6M
- 14.24%
- 1Y
- 17.86%
- 3Y*
- 10.82%
- 5Y*
- 5.32%
- 10Y*
- 9.87%
MBB vs. VAW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 0.14% | 8.38% | 1.31% | 5.01% | -11.74% | -1.43% | 4.08% | 6.18% | 0.82% | 2.49% |
VAW Vanguard Materials ETF | 9.07% | 12.30% | 0.48% | 13.67% | -11.80% | 27.43% | 19.44% | 23.53% | -17.49% | 23.76% |
Correlation
The correlation between MBB and VAW is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.38 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.28 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.21 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.08 |
Correlation (All Time) Calculated using the full available price history since Mar 19, 2007 | -0.06 |
The correlation between MBB and VAW shifts across timeframes, from -0.06 (all time) to 0.38 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
MBB vs. VAW — Risk / Return Rank
MBB
VAW
MBB vs. VAW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MBS Bond ETF (MBB) and Vanguard Materials ETF (VAW). 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.
| MBB | VAW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.48 | ||
| Sortino ratioReturn per unit of downside risk | +0.68 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.18 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 2.23 | 1.34 | +0.90 |
| Martin ratioReturn relative to average drawdown | 7.26 | 4.32 | +2.93 |
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
| MBB | VAW | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.48 | 1.01 | +0.48 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.04 | 0.27 | -0.24 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.24 | 0.47 | -0.23 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.58 | 0.39 | +0.19 |
Drawdowns
MBB vs. VAW - Drawdown Comparison
The maximum MBB drawdown since its inception was -17.64%, smaller than the maximum VAW drawdown of -62.17%. Use the drawdown chart below to compare losses from any high point for MBB and VAW.
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Drawdown Indicators
| MBB | VAW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.64% | -62.17% | +44.53% |
Max Drawdown (1Y)Largest decline over 1 year | -2.94% | -13.42% | +10.48% |
Max Drawdown (3Y)Largest decline over 3 years | -7.68% | -23.21% | +15.53% |
Max Drawdown (5Y)Largest decline over 5 years | -17.19% | -25.50% | +8.31% |
Max Drawdown (10Y)Largest decline over 10 years | -17.64% | -41.13% | +23.49% |
Current DrawdownCurrent decline from peak | -1.95% | -7.27% | +5.32% |
Average DrawdownAverage peak-to-trough decline | -2.35% | -9.63% | +7.28% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.90% | 4.14% | -3.24% |
Volatility
MBB vs. VAW - Volatility Comparison
The current volatility for iShares MBS Bond ETF (MBB) is 1.56%, while Vanguard Materials ETF (VAW) has a volatility of 5.94%. This indicates that MBB experiences smaller price fluctuations and is considered to be less risky than VAW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MBB | VAW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.56% | 5.94% | -4.38% |
Volatility (6M)Calculated over the trailing 6-month period | 3.25% | 14.18% | -10.93% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.45% | 17.88% | -13.43% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.82% | 19.65% | -12.83% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.31% | 21.22% | -15.91% |
MBB vs. VAW - Expense Ratio Comparison
MBB has a 0.06% expense ratio, which is lower than VAW's 0.10% 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
MBB vs. VAW - Dividend Comparison
MBB's dividend yield for the trailing twelve months is around 4.30%, more than VAW's 1.41% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 4.30% | 4.21% | 3.94% | 3.40% | 2.31% | 1.05% | 2.10% | 2.77% | 2.64% | 2.23% | 2.58% | 2.66% |
VAW Vanguard Materials ETF | 1.41% | 1.55% | 1.70% | 1.72% | 1.98% | 1.44% | 1.67% | 1.94% | 2.03% | 1.63% | 1.67% | 2.30% |
Frequently Asked Questions
MBB and VAW have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VAW has higher volatility (5.94%) compared to MBB (1.56%). In terms of maximum drawdown, MBB dropped -17.64% vs VAW's -62.17%.
On 10-year performance, VAW leads with 9.87% vs 1.24% for MBB. On fees, MBB is cheaper at 0.06% per year. On volatility, MBB 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, VAW has performed better with a 9.87% return vs 1.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MBB is cheaper with a 0.06% expense ratio, compared with 0.10% for VAW.
MBB has the higher dividend yield at 4.30%, compared with 1.41% for VAW.
MBB is categorized as Mortgage Backed Securities, while VAW is Materials. MBB tracks Barclays Capital U.S. MBS Index, while VAW tracks MSCI US Investable Market Materials 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.06% for MBB and 0.10% for VAW.
MBB currently has the higher Sharpe Ratio (1.48 vs 1.01), 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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