MBSD vs. VMBS

Last updated Apr 1, 2026

Compare and contrast key facts about FlexShares Disciplined Duration MBS Index Fund (MBSD) and Vanguard Mortgage-Backed Securities ETF (VMBS).

MBSD and VMBS are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. MBSD is a passively managed fund by Northern Trust that tracks the performance of the ICE BofA Constrained Duration US Mortgage Backed Securities. It was launched on Sep 4, 2014. VMBS is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. MBS Index. It was launched on Nov 19, 2009. Both MBSD and VMBS are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

MBSD vs. VMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Disciplined Duration MBS Index Fund (MBSD) and Vanguard Mortgage-Backed Securities ETF (VMBS). The values are adjusted to include any dividend payments, if applicable.

MBSD vs. VMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MBSD FlexShares Disciplined Duration MBS Index Fund	0.27%	7.12%	2.30%	4.46%	-9.49%	-1.40%	5.43%	6.05%	0.32%	0.86%
VMBS Vanguard Mortgage-Backed Securities ETF	0.41%	8.36%	1.70%	5.34%	-11.90%	-1.28%	3.76%	6.19%	0.91%	2.47%

Returns By Period

In the year-to-date period, MBSD achieves a 0.27% return, which is significantly lower than VMBS's 0.41% return. Both investments have delivered pretty close results over the past 10 years, with MBSD having a 1.48% annualized return and VMBS not far behind at 1.41%.

MBSD

• 1D: 0.32%
• 1M: -1.34%
• YTD: 0.27%
• 6M: 1.61%
• 1Y: 4.63%
• 3Y*: 4.05%
• 5Y*: 0.52%
• 10Y*: 1.48%

VMBS

• 1D: 0.21%
• 1M: -1.57%
• YTD: 0.41%
• 6M: 2.06%
• 1Y: 5.79%
• 3Y*: 4.29%
• 5Y*: 0.49%
• 10Y*: 1.41%

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

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%.

MBSD

FlexShares Disciplined Duration MBS Index Fund

VMBS

Vanguard Mortgage-Backed Securities ETF

Return for Risk

MBSD vs. VMBS — Risk / Return Rank

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

MBSD

MBSD Risk / Return Rank: 66
MBSD Sharpe Ratio Rank: 68
MBSD Sortino Ratio Rank: 69
MBSD Omega Ratio Rank: 59
MBSD Calmar Ratio Rank: 77
MBSD Martin Ratio Rank: 56

VMBS

VMBS Risk / Return Rank: 68
VMBS Sharpe Ratio Rank: 69
VMBS Sortino Ratio Rank: 68
VMBS Omega Ratio Rank: 60
VMBS Calmar Ratio Rank: 77
VMBS Martin Ratio Rank: 64

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.

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.

	MBSD	VMBS	Difference
Sharpe ratio Return per unit of total volatility	1.18	1.16	+0.02
Sortino ratio Return per unit of downside risk	1.71	1.67	+0.04
Omega ratio Gain probability vs. loss probability	1.21	1.21	0.00
Calmar ratio Return relative to maximum drawdown	2.05	1.95	+0.10
Martin ratio Return relative to average drawdown	5.38	6.10	-0.72
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MBSD vs. VMBS - Sharpe Ratio Comparison

The current MBSD Sharpe Ratio is 1.18, which is comparable to the VMBS Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of MBSD and VMBS, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	MBSD	VMBS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.18	1.16	+0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	0.07	+0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.35	0.26	+0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.46	-0.08

Correlation

The correlation between MBSD and VMBS is 0.62, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

MBSD vs. VMBS - Dividend Comparison

MBSD's dividend yield for the trailing twelve months is around 4.25%, which matches VMBS's 4.23% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MBSD FlexShares Disciplined Duration MBS Index Fund	4.25%	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	4.23%	4.20%	3.94%	3.31%	2.35%	1.02%	2.01%	2.77%	2.72%	2.16%	2.10%	2.12%

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.

Drawdown Indicators

	MBSD	VMBS	Difference
Max Drawdown Largest peak-to-trough decline	-14.36%	-17.47%	+3.11%
Max Drawdown (1Y) Largest decline over 1 year	-2.22%	-3.00%	+0.78%
Max Drawdown (5Y) Largest decline over 5 years	-14.10%	-17.12%	+3.02%
Max Drawdown (10Y) Largest decline over 10 years	-14.36%	-17.47%	+3.11%
Current Drawdown Current decline from peak	-1.34%	-1.57%	+0.23%
Average Drawdown Average peak-to-trough decline	-2.84%	-2.51%	-0.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.85%	0.96%	-0.11%

Volatility

MBSD vs. VMBS - Volatility Comparison

The current volatility for FlexShares Disciplined Duration MBS Index Fund (MBSD) is 1.48%, while Vanguard Mortgage-Backed Securities ETF (VMBS) has a volatility of 1.90%. 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.

Volatility by Period

	MBSD	VMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.48%	1.90%	-0.42%
Volatility (6M) Calculated over the trailing 6-month period	2.28%	2.89%	-0.61%
Volatility (1Y) Calculated over the trailing 1-year period	3.93%	5.00%	-1.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.13%	6.71%	-1.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.25%	5.37%	-1.12%