MBB vs. VGK
MBB (iShares MBS Bond ETF) and VGK (Vanguard FTSE Europe ETF) are both exchange-traded funds - MBB is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index, while VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, MBB returned 1.31%/yr vs 10.28%/yr for VGK. At a correlation of -0.02, they often move in opposite directions. Both charge a 0.06% expense ratio.
Performance
MBB vs. VGK - Performance Comparison
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Returns By Period
In the year-to-date period, MBB achieves a 0.86% return, which is significantly lower than VGK's 7.69% return. Over the past 10 years, MBB has underperformed VGK with an annualized return of 1.31%, while VGK has yielded a comparatively higher 10.28% annualized return.
MBB
- 1D
- -0.15%
- 1M
- 1.22%
- YTD
- 0.86%
- 6M
- 1.51%
- 1Y
- 6.41%
- 3Y*
- 4.55%
- 5Y*
- 0.38%
- 10Y*
- 1.31%
VGK
- 1D
- 0.18%
- 1M
- 4.46%
- YTD
- 7.69%
- 6M
- 9.92%
- 1Y
- 19.73%
- 3Y*
- 16.69%
- 5Y*
- 8.50%
- 10Y*
- 10.28%
MBB vs. VGK - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 0.86% | 8.38% | 1.31% | 5.01% | -11.74% | -1.43% | 4.08% | 6.18% | 0.82% | 2.49% |
VGK Vanguard FTSE Europe ETF | 7.69% | 35.83% | 1.88% | 20.19% | -15.98% | 16.89% | 5.43% | 24.85% | -14.89% | 26.98% |
Correlation
The correlation between MBB and VGK is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.46 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.37 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.28 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.14 |
Correlation (All Time) Calculated using the full available price history since Mar 16, 2007 | -0.02 |
The correlation between MBB and VGK shifts across timeframes, from -0.02 (all time) to 0.46 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
MBB vs. VGK — Risk / Return Rank
MBB
VGK
MBB vs. VGK - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MBS Bond ETF (MBB) and Vanguard FTSE Europe ETF (VGK). 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.
| MBB | VGK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.20 | ||
| Sortino ratioReturn per unit of downside risk | +0.28 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.20 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.01 | 1.49 | +0.52 |
| Martin ratioReturn relative to average drawdown | 6.39 | 5.52 | +0.88 |
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Drawdowns
MBB vs. VGK - Drawdown Comparison
The maximum MBB drawdown since its inception was -17.64%, smaller than the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for MBB and VGK.
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Drawdown Indicators
| MBB | VGK | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.64% | -63.61% | +45.97% |
Max Drawdown (1Y)Largest decline over 1 year | -2.94% | -12.09% | +9.15% |
Max Drawdown (3Y)Largest decline over 3 years | -7.68% | -14.31% | +6.63% |
Max Drawdown (5Y)Largest decline over 5 years | -17.19% | -32.74% | +15.55% |
Max Drawdown (10Y)Largest decline over 10 years | -17.64% | -37.24% | +19.60% |
Current DrawdownCurrent decline from peak | -1.24% | -0.50% | -0.74% |
Average DrawdownAverage peak-to-trough decline | -2.35% | -13.33% | +10.98% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 3.27% | -2.35% |
Volatility
MBB vs. VGK - Volatility Comparison
The current volatility for iShares MBS Bond ETF (MBB) is 1.58%, while Vanguard FTSE Europe ETF (VGK) has a volatility of 5.82%. This indicates that MBB experiences smaller price fluctuations and is considered to be less risky than VGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MBB | VGK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.58% | 5.82% | -4.24% |
Volatility (6M)Calculated over the trailing 6-month period | 3.28% | 13.36% | -10.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.46% | 15.92% | -11.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.82% | 17.98% | -11.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.31% | 18.95% | -13.64% |
MBB vs. VGK - Expense Ratio Comparison
Both MBB and VGK have an expense ratio of 0.06%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
MBB vs. VGK - Dividend Comparison
MBB's dividend yield for the trailing twelve months is around 4.26%, more than VGK's 2.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 4.26% | 4.21% | 3.94% | 3.40% | 2.31% | 1.05% | 2.10% | 2.77% | 2.64% | 2.23% | 2.58% | 2.66% |
VGK Vanguard FTSE Europe ETF | 2.76% | 2.86% | 3.61% | 3.15% | 3.25% | 3.05% | 2.11% | 3.27% | 3.95% | 2.70% | 3.52% | 3.25% |
Frequently Asked Questions
MBB and VGK have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGK has higher volatility (5.82%) compared to MBB (1.58%). In terms of maximum drawdown, MBB dropped -17.64% vs VGK's -63.61%.
On 10-year performance, VGK leads with 10.28% vs 1.31% for MBB. Both ETFs have the same 0.06% expense ratio. On volatility, MBB has been the lower-risk option at 1.58%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VGK has performed better with a 10.28% return vs 1.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MBB and VGK have the same expense ratio: 0.06% per year.
MBB has the higher dividend yield at 4.26%, compared with 2.76% for VGK.
MBB is categorized as Mortgage Backed Securities, while VGK is Europe Equities. MBB tracks Barclays Capital U.S. MBS Index, while VGK tracks FTSE Developed Europe All Cap Index. They also come from different issuers: iShares and Vanguard.
MBB currently has the higher Sharpe Ratio (1.33 vs 1.13), 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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