MBSD vs. VMBS
MBSD (FlexShares Disciplined Duration MBS Index Fund) and VMBS (Vanguard Mortgage-Backed Securities ETF) are both Mortgage Backed Securities funds - MBSD tracks the ICE BofA Constrained Duration US Mortgage Backed Securities while VMBS tracks the Bloomberg U.S. MBS Float Adjusted Index. Both are passively managed. Over the past 10 years, MBSD returned 1.30%/yr vs 1.21%/yr for VMBS. Their 0.63 correlation means they have sometimes moved together and sometimes differently. MBSD charges 0.20%/yr vs 0.04%/yr for VMBS.
Performance
MBSD vs. VMBS - Performance Comparison
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Returns By Period
In the year-to-date period, MBSD achieves a -0.19% return, which is significantly lower than VMBS's -0.12% return. Over the past 10 years, MBSD has outperformed VMBS with an annualized return of 1.30%, while VMBS has yielded a comparatively lower 1.21% annualized return.
MBSD
- 1D
- -0.34%
- 1M
- -0.87%
- 6M
- -0.62%
- YTD
- -0.19%
- 1Y
- 2.42%
- 3Y*
- 4.23%
- 5Y*
- 0.47%
- 10Y*
- 1.30%
- ALL TIME*
- 1.54%
VMBS
- 1D
- -0.41%
- 1M
- -1.18%
- 6M
- -0.45%
- YTD
- -0.12%
- 1Y
- 3.32%
- 3Y*
- 4.53%
- 5Y*
- 0.25%
- 10Y*
- 1.21%
- ALL TIME*
- 2.03%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $201.68K | $253.65K | $251.40K | |
| $62.70M | $62.14M | $62.59M |
MBSD vs. VMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MBSD FlexShares Disciplined Duration MBS Index Fund | -0.19% | 7.12% | 2.30% | 4.46% | -9.49% | -1.40% | 5.43% | 6.05% | 0.32% | 0.86% |
VMBS Vanguard Mortgage-Backed Securities ETF | -0.12% | 8.36% | 1.70% | 5.34% | -11.90% | -1.28% | 3.76% | 6.19% | 0.91% | 2.47% |
Correlation
The correlation between MBSD and VMBS is 0.85, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.85 |
Correlation (3Y) Balances recent behavior with more history. | 0.89 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.87 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.68 |
Correlation (All Time) Calculated using the full available price history since Sep 4, 2014 | 0.63 |
Over the past year, MBSD and VMBS have become more correlated (0.85) than their long-term average of 0.63, meaning their price movements have been converging.
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Return for Risk
MBSD vs. VMBS — Risk / Return Rank
MBSD
VMBS
MBSD vs. VMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares Disciplined Duration MBS Index Fund (MBSD) 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.
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.
| MBSD | VMBS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.06 | ||
| Sortino ratioReturn per unit of downside risk | -0.12 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.18 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.50 | 1.61 | -0.12 |
| Martin ratioReturn relative to average drawdown | 3.96 | 4.60 | -0.64 |
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Drawdowns
MBSD vs. VMBS - Drawdown Comparison
The maximum MBSD drawdown since its inception was -14.36%, smaller than the maximum VMBS drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for MBSD and VMBS.
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Drawdown Indicators
| MBSD | VMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.36% | -17.47% | +3.11% |
Max Drawdown (1Y)Largest decline over 1 year | -2.17% | -2.68% | +0.51% |
Max Drawdown (3Y)Largest decline over 3 years | -4.25% | -6.41% | +2.16% |
Max Drawdown (5Y)Largest decline over 5 years | -14.05% | -17.09% | +3.04% |
Max Drawdown (10Y)Largest decline over 10 years | -14.36% | -17.47% | +3.11% |
Current DrawdownCurrent decline from peak | -1.79% | -2.09% | +0.30% |
Average DrawdownAverage peak-to-trough decline | -2.79% | -2.48% | -0.31% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.82% | 0.94% | -0.12% |
Volatility
MBSD vs. VMBS - Volatility Comparison
The current volatility for FlexShares Disciplined Duration MBS Index Fund (MBSD) is 0.85%, while Vanguard Mortgage-Backed Securities ETF (VMBS) has a volatility of 1.17%. This indicates that MBSD 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.
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Volatility by Period
| MBSD | VMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.85% | 1.17% | -0.32% |
Volatility (6M)Calculated over the trailing 6-month period | 2.58% | 3.42% | -0.84% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.43% | 4.29% | -0.86% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.17% | 6.80% | -1.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.26% | 5.42% | -1.16% |
MBSD vs. VMBS - Expense Ratio Comparison
MBSD has a 0.20% 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
MBSD vs. VMBS - Dividend Comparison
MBSD's dividend yield for the trailing twelve months is around 4.21%, which matches VMBS's 4.24% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MBSD FlexShares Disciplined Duration MBS Index Fund | 3.88% | 4.23% | 3.91% | 3.39% | 3.03% | 2.41% | 2.78% | 3.42% | 3.22% | 3.30% | 3.02% | 3.46% |
VMBS Vanguard Mortgage-Backed Securities ETF | 3.88% | 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
MBSD 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.
VMBS has higher volatility (1.17%) compared to MBSD (0.85%). In terms of maximum drawdown, MBSD dropped -14.36% vs VMBS's -17.47%.
On 10-year performance, MBSD leads with 1.30% vs 1.21% for VMBS. On fees, VMBS is cheaper at 0.04% per year. On volatility, MBSD has been the lower-risk option at 0.85%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, MBSD has performed better with a 1.30% return vs 1.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VMBS is cheaper with a 0.04% expense ratio, compared with 0.20% for MBSD.
MBSD and VMBS have nearly identical dividend yields, around 3.88%.
MBSD tracks ICE BofA Constrained Duration US Mortgage Backed Securities, while VMBS tracks Bloomberg U.S. MBS Float Adjusted Index. They also come from different issuers: Northern Trust and Vanguard. Their fees differ too: 0.20% for MBSD and 0.04% for VMBS.
VMBS currently has the higher Sharpe Ratio (1.01 vs 0.95), 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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