MBB vs. VGIT
MBB (iShares MBS Bond ETF) and VGIT (Vanguard Intermediate-Term Treasury ETF) are both exchange-traded funds - MBB is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index, while VGIT is a Government Bonds fund tracking the Bloomberg U.S. Treasury 3-10 Year Index. Both are passively managed. Over the past 10 years, MBB returned 1.30%/yr vs 1.23%/yr for VGIT. Their correlation of 0.81 suggests significant overlap in exposure. MBB charges 0.06%/yr vs 0.03%/yr for VGIT.
Performance
MBB vs. VGIT - Performance Comparison
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Returns By Period
In the year-to-date period, MBB achieves a 0.58% return, which is significantly higher than VGIT's -0.46% return. Over the past 10 years, MBB has outperformed VGIT with an annualized return of 1.30%, while VGIT has yielded a comparatively lower 1.23% annualized return.
MBB
- 1D
- -0.23%
- 1M
- 0.31%
- YTD
- 0.58%
- 6M
- 0.71%
- 1Y
- 6.76%
- 3Y*
- 4.36%
- 5Y*
- 0.34%
- 10Y*
- 1.30%
VGIT
- 1D
- -0.19%
- 1M
- -0.16%
- YTD
- -0.46%
- 6M
- -0.60%
- 1Y
- 3.54%
- 3Y*
- 3.40%
- 5Y*
- 0.05%
- 10Y*
- 1.23%
MBB vs. VGIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 0.58% | 8.38% | 1.31% | 5.01% | -11.74% | -1.43% | 4.08% | 6.18% | 0.82% | 2.49% |
VGIT Vanguard Intermediate-Term Treasury ETF | -0.46% | 7.34% | 1.39% | 4.28% | -10.53% | -2.64% | 7.71% | 6.19% | 1.35% | 1.70% |
Correlation
The correlation between MBB and VGIT is 0.93, 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 | 0.93 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.94 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.92 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.81 |
The correlation between MBB and VGIT shifts across timeframes, from 0.81 (all time) to 0.94 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
MBB vs. VGIT — Risk / Return Rank
MBB
VGIT
MBB vs. VGIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MBS Bond ETF (MBB) and Vanguard Intermediate-Term Treasury ETF (VGIT). 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 | VGIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.46 | ||
| Sortino ratioReturn per unit of downside risk | +0.62 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.18 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 2.31 | 1.25 | +1.05 |
| Martin ratioReturn relative to average drawdown | 7.64 | 3.75 | +3.89 |
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 | VGIT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.51 | 1.05 | +0.46 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.05 | 0.01 | +0.04 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.25 | 0.27 | -0.03 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.58 | 0.49 | +0.09 |
Drawdowns
MBB vs. VGIT - Drawdown Comparison
The maximum MBB drawdown since its inception was -17.64%, which is greater than VGIT's maximum drawdown of -16.05%. Use the drawdown chart below to compare losses from any high point for MBB and VGIT.
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Drawdown Indicators
| MBB | VGIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.64% | -16.05% | -1.59% |
Max Drawdown (1Y)Largest decline over 1 year | -2.94% | -2.83% | -0.11% |
Max Drawdown (3Y)Largest decline over 3 years | -7.68% | -4.34% | -3.34% |
Max Drawdown (5Y)Largest decline over 5 years | -17.19% | -15.02% | -2.17% |
Max Drawdown (10Y)Largest decline over 10 years | -17.64% | -16.05% | -1.59% |
Current DrawdownCurrent decline from peak | -1.52% | -2.39% | +0.87% |
Average DrawdownAverage peak-to-trough decline | -2.35% | -3.52% | +1.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.89% | 0.94% | -0.05% |
Volatility
MBB vs. VGIT - Volatility Comparison
iShares MBS Bond ETF (MBB) has a higher volatility of 1.59% compared to Vanguard Intermediate-Term Treasury ETF (VGIT) at 1.05%. This indicates that MBB's price experiences larger fluctuations and is considered to be riskier than VGIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MBB | VGIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.59% | 1.05% | +0.54% |
Volatility (6M)Calculated over the trailing 6-month period | 3.23% | 2.33% | +0.90% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.51% | 3.38% | +1.13% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.81% | 5.38% | +1.43% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.31% | 4.50% | +0.81% |
MBB vs. VGIT - Expense Ratio Comparison
MBB has a 0.06% expense ratio, which is higher than VGIT's 0.03% expense ratio. However, 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. VGIT - Dividend Comparison
MBB's dividend yield for the trailing twelve months is around 4.28%, more than VGIT's 3.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 4.28% | 4.21% | 3.94% | 3.40% | 2.31% | 1.05% | 2.10% | 2.77% | 2.64% | 2.23% | 2.58% | 2.66% |
VGIT Vanguard Intermediate-Term Treasury ETF | 3.87% | 3.79% | 3.67% | 2.73% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% |
Frequently Asked Questions
With a correlation of 0.93, MBB and VGIT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
MBB has higher volatility (1.59%) compared to VGIT (1.05%). In terms of maximum drawdown, MBB dropped -17.64% vs VGIT's -16.05%.
On 10-year performance, MBB leads with 1.30% vs 1.23% for VGIT. On fees, VGIT is cheaper at 0.03% per year. On volatility, VGIT has been the lower-risk option at 1.05%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, MBB has performed better with a 1.30% return vs 1.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGIT is cheaper with a 0.03% expense ratio, compared with 0.06% for MBB.
MBB has the higher dividend yield at 4.28%, compared with 3.87% for VGIT.
MBB is categorized as Mortgage Backed Securities, while VGIT is Government Bonds. MBB tracks Barclays Capital U.S. MBS Index, while VGIT tracks Bloomberg U.S. Treasury 3-10 Year Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.06% for MBB and 0.03% for VGIT.
MBB currently has the higher Sharpe Ratio (1.51 vs 1.05), 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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