MBS vs. VGIT
MBS (Angel Oak Mortgage-Backed Securities ETF) and VGIT (Vanguard Intermediate-Term Treasury ETF) are both exchange-traded funds - MBS is a Intermediate Core-Plus Bond fund actively managed by Angel Oak, while VGIT is a Government Bonds fund tracking the Bloomberg U.S. Treasury 3-10 Year Index. MBS is actively managed, while VGIT is passively managed. Over the past year, MBS returned 6.88% vs 3.54% for VGIT. A 0.66 correlation means they provide meaningful diversification when combined. MBS charges 0.49%/yr vs 0.03%/yr for VGIT.
Performance
MBS vs. VGIT - Performance Comparison
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Returns By Period
In the year-to-date period, MBS achieves a 0.62% return, which is significantly higher than VGIT's -0.46% return.
MBS
- 1D
- -0.29%
- 1M
- -0.22%
- YTD
- 0.62%
- 6M
- 0.84%
- 1Y
- 6.88%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
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%
MBS vs. VGIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
MBS Angel Oak Mortgage-Backed Securities ETF | 0.62% | 8.13% | 5.78% |
VGIT Vanguard Intermediate-Term Treasury ETF | -0.46% | 7.34% | 2.84% |
Correlation
The correlation between MBS and VGIT is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Feb 21, 2024 | 0.66 |
The correlation between MBS and VGIT has been stable across timeframes, ranging from 0.62 to 0.66 - a consistent structural relationship.
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Return for Risk
MBS vs. VGIT — Risk / Return Rank
MBS
VGIT
MBS vs. VGIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Angel Oak Mortgage-Backed Securities ETF (MBS) 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.
| MBS | VGIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.31 | ||
| Sortino ratioReturn per unit of downside risk | +1.94 | ||
| Omega ratioGain probability vs. loss probability | 1.45 | 1.18 | +0.26 |
| Calmar ratioReturn relative to maximum drawdown | 3.14 | 1.25 | +1.89 |
| Martin ratioReturn relative to average drawdown | 9.89 | 3.75 | +6.14 |
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
| MBS | VGIT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.36 | 1.05 | +1.31 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.01 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.27 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.60 | 0.49 | +1.10 |
Drawdowns
MBS vs. VGIT - Drawdown Comparison
The maximum MBS drawdown since its inception was -4.09%, smaller than the maximum VGIT drawdown of -16.05%. Use the drawdown chart below to compare losses from any high point for MBS and VGIT.
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Drawdown Indicators
| MBS | VGIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -4.09% | -16.05% | +11.96% |
Max Drawdown (1Y)Largest decline over 1 year | -2.20% | -2.83% | +0.63% |
Max Drawdown (3Y)Largest decline over 3 years | — | -4.34% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -15.02% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -16.05% | — |
Current DrawdownCurrent decline from peak | -1.46% | -2.39% | +0.93% |
Average DrawdownAverage peak-to-trough decline | -1.02% | -3.52% | +2.50% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.70% | 0.94% | -0.24% |
Volatility
MBS vs. VGIT - Volatility Comparison
The current volatility for Angel Oak Mortgage-Backed Securities ETF (MBS) is 0.90%, while Vanguard Intermediate-Term Treasury ETF (VGIT) has a volatility of 1.05%. This indicates that MBS experiences smaller price fluctuations and is considered to be less risky 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
| MBS | VGIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.90% | 1.05% | -0.15% |
Volatility (6M)Calculated over the trailing 6-month period | 2.00% | 2.33% | -0.33% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.93% | 3.38% | -0.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.99% | 5.38% | -1.39% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.99% | 4.50% | -0.51% |
MBS vs. VGIT - Expense Ratio Comparison
MBS has a 0.49% expense ratio, which is higher than VGIT's 0.03% expense ratio.
Dividends
MBS vs. VGIT - Dividend Comparison
MBS's dividend yield for the trailing twelve months is around 5.61%, more than VGIT's 3.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MBS Angel Oak Mortgage-Backed Securities ETF | 5.61% | 5.28% | 4.52% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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
MBS and VGIT have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGIT has higher volatility (1.05%) compared to MBS (0.90%). In terms of maximum drawdown, MBS dropped -4.09% vs VGIT's -16.05%.
On 1-year performance, MBS leads with 6.88% vs 3.54% for VGIT. On fees, VGIT is cheaper at 0.03% per year. On volatility, MBS has been the lower-risk option at 0.90%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, MBS has performed better with a 6.88% return vs 3.54%. 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 0.49% for MBS.
MBS has the higher dividend yield at 5.61%, compared with 3.87% for VGIT.
MBS is categorized as Intermediate Core-Plus Bond, while VGIT is Government Bonds. They also come from different issuers: Angel Oak and Vanguard. Their fees differ too: 0.49% for MBS and 0.03% for VGIT.
MBS currently has the higher Sharpe Ratio (2.36 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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