MBBB vs. VMBS

Last updated Jun 4, 2026

MBBB (VanEck Moody's Analytics BBB Corporate Bond ETF) and VMBS (Vanguard Mortgage-Backed Securities ETF) are both exchange-traded funds - MBBB is a Corporate Bonds fund tracking the MVIS Moody's Analytics US BBB Corporate Bond Index, while VMBS is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index. Both are passively managed. Over the past 5 years, MBBB returned 1.11%/yr vs 0.48%/yr for VMBS. Their correlation of 0.84 suggests significant overlap in exposure. MBBB charges 0.25%/yr vs 0.04%/yr for VMBS.

Performance

MBBB vs. VMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Moody's Analytics BBB Corporate Bond ETF (MBBB) and Vanguard Mortgage-Backed Securities ETF (VMBS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MBBB achieves a 0.43% return, which is significantly lower than VMBS's 0.66% return.

MBBB

• 1D: -0.23%
• 1M: 0.71%
• YTD: 0.43%
• 6M: 0.32%
• 1Y: 5.40%
• 3Y*: 6.05%
• 5Y*: 1.11%
• 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%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MBBB vs. VMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
MBBB VanEck Moody's Analytics BBB Corporate Bond ETF	0.43%	7.64%	3.68%	9.75%	-15.04%	0.30%	1.51%
VMBS Vanguard Mortgage-Backed Securities ETF	0.66%	8.36%	1.70%	5.34%	-11.90%	-1.28%	0.25%

Correlation

The correlation between MBBB and VMBS is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (All Time) Calculated using the full available price history since Dec 3, 2020	0.84

The correlation between MBBB and VMBS has been stable across timeframes, ranging from 0.84 to 0.89 - a consistent structural relationship.

Return for Risk

MBBB vs. VMBS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MBBB

MBBB Risk / Return Rank: 37
MBBB Sharpe Ratio Rank: 36
MBBB Sortino Ratio Rank: 37
MBBB Omega Ratio Rank: 35
MBBB Calmar Ratio Rank: 37
MBBB Martin Ratio Rank: 38

VMBS

VMBS Risk / Return Rank: 48
VMBS Sharpe Ratio Rank: 45
VMBS Sortino Ratio Rank: 48
VMBS Omega Ratio Rank: 45
VMBS Calmar Ratio Rank: 52
VMBS Martin Ratio Rank: 51

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MBBB vs. VMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Moody's Analytics BBB Corporate Bond ETF (MBBB) 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.

	MBBB	VMBS	Difference
Sharpe ratio Return per unit of total volatility	1.31	1.59	-0.29
Sortino ratio Return per unit of downside risk	1.92	2.38	-0.45
Omega ratio Gain probability vs. loss probability	1.23	1.29	-0.06
Calmar ratio Return relative to maximum drawdown	1.82	2.59	-0.78
Martin ratio Return relative to average drawdown	5.86	8.68	-2.82
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MBBB vs. VMBS - Sharpe Ratio Comparison

The current MBBB Sharpe Ratio is 1.31, which is comparable to the VMBS Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of MBBB and VMBS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	MBBB	VMBS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.31	1.59	-0.29
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.18	0.07	+0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.25	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.18	0.46	-0.27

Drawdowns

MBBB vs. VMBS - Drawdown Comparison

The maximum MBBB drawdown since its inception was -21.73%, which is greater than VMBS's maximum drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for MBBB and VMBS.

Drawdown Indicators

	MBBB	VMBS	Difference
Max Drawdown Largest peak-to-trough decline	-21.73%	-17.47%	-4.26%
Max Drawdown (1Y) Largest decline over 1 year	-2.98%	-2.68%	-0.30%
Max Drawdown (3Y) Largest decline over 3 years	-5.64%	-7.65%	+2.01%
Max Drawdown (5Y) Largest decline over 5 years	-21.73%	-17.12%	-4.61%
Max Drawdown (10Y) Largest decline over 10 years	—	-17.47%	—
Current Drawdown Current decline from peak	-0.97%	-1.33%	+0.36%
Average Drawdown Average peak-to-trough decline	-6.83%	-2.49%	-4.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.92%	0.80%	+0.12%

Volatility

MBBB vs. VMBS - Volatility Comparison

The current volatility for VanEck Moody's Analytics BBB Corporate Bond ETF (MBBB) is 1.52%, while Vanguard Mortgage-Backed Securities ETF (VMBS) has a volatility of 1.62%. This indicates that MBBB 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.

Volatility by Period

	MBBB	VMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.52%	1.62%	-0.10%
Volatility (6M) Calculated over the trailing 6-month period	3.15%	3.16%	-0.01%
Volatility (1Y) Calculated over the trailing 1-year period	4.14%	4.37%	-0.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.36%	6.77%	-0.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.23%	5.40%	+0.83%

MBBB vs. VMBS - Expense Ratio Comparison

MBBB has a 0.25% expense ratio, which is higher than VMBS's 0.04% 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

MBBB vs. VMBS - Dividend Comparison

MBBB's dividend yield for the trailing twelve months is around 5.08%, more than VMBS's 4.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MBBB VanEck Moody's Analytics BBB Corporate Bond ETF	5.08%	4.99%	4.93%	4.51%	3.22%	2.29%	0.19%	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

Can I hold both MBBB and VMBS in my portfolio?

MBBB and VMBS have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MBBB or VMBS?

VMBS has higher volatility (1.62%) compared to MBBB (1.52%). In terms of maximum drawdown, MBBB dropped -21.73% vs VMBS's -17.47%.

Which ETF is better, MBBB or VMBS?

On 5-year performance, MBBB leads with 1.11% vs 0.48% for VMBS. On fees, VMBS is cheaper at 0.04% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MBBB or VMBS?

Over the 5-year period, MBBB has performed better with a 1.11% return vs 0.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MBBB or VMBS?

VMBS is cheaper with a 0.04% expense ratio, compared with 0.25% for MBBB.

Which ETF pays a higher dividend yield, MBBB or VMBS?

MBBB has the higher dividend yield at 5.08%, compared with 4.19% for VMBS.

What is the main difference between MBBB and VMBS?

MBBB is categorized as Corporate Bonds, while VMBS is Mortgage Backed Securities. MBBB tracks MVIS Moody's Analytics US BBB Corporate Bond Index, while VMBS tracks Barclays Capital U.S. MBS Index. They also come from different issuers: VanEck and Vanguard. Their fees differ too: 0.25% for MBBB and 0.04% for VMBS.

Which has better risk-adjusted returns?

VMBS currently has the higher Sharpe Ratio (1.59 vs 1.31), 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.