PMBS vs. VMBS

Last updated Jun 23, 2026

PMBS (PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund) and VMBS (Vanguard Mortgage-Backed Securities ETF) are both Mortgage Backed Securities funds. PMBS is actively managed, while VMBS is passively managed. Over the past year, PMBS returned 6.61% vs 6.00% for VMBS. With a 0.95 correlation, they move nearly in lockstep. PMBS charges 0.71%/yr vs 0.04%/yr for VMBS.

Performance

PMBS vs. VMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) and Vanguard Mortgage-Backed Securities ETF (VMBS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with PMBS having a 0.96% return and VMBS slightly lower at 0.92%.

PMBS

• 1D: -0.21%
• 1M: 0.47%
• YTD: 0.96%
• 6M: 1.11%
• 1Y: 6.61%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VMBS

• 1D: 0.09%
• 1M: 0.63%
• YTD: 0.92%
• 6M: 1.02%
• 1Y: 6.00%
• 3Y*: 4.52%
• 5Y*: 0.57%
• 10Y*: 1.35%

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

PMBS vs. VMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PMBS PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund	0.96%	8.92%	-2.80%
VMBS Vanguard Mortgage-Backed Securities ETF	0.92%	8.36%	-2.91%

Correlation

The correlation between PMBS and VMBS is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (All Time) Calculated using the full available price history since Sep 23, 2024	0.95

The correlation between PMBS and VMBS has been stable across timeframes, ranging from 0.95 to 0.96 - a consistent structural relationship.

Return for Risk

PMBS vs. VMBS — Risk / Return Rank

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

PMBS

PMBS Risk / Return Rank: 46
PMBS Sharpe Ratio Rank: 47
PMBS Sortino Ratio Rank: 49
PMBS Omega Ratio Rank: 46
PMBS Calmar Ratio Rank: 46
PMBS Martin Ratio Rank: 45

VMBS

VMBS Risk / Return Rank: 43
VMBS Sharpe Ratio Rank: 41
VMBS Sortino Ratio Rank: 43
VMBS Omega Ratio Rank: 40
VMBS Calmar Ratio Rank: 47
VMBS Martin Ratio Rank: 45

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.

PMBS vs. VMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) 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.

	PMBS	VMBS	Difference
Sharpe ratio: Return per unit of total volatility	1.58	1.40	+0.18
Sortino ratio: Return per unit of downside risk	2.33	2.08	+0.25
Omega ratio: Gain probability vs. loss probability	1.29	1.25	+0.03
Calmar ratio: Return relative to maximum drawdown	2.24	2.24	0.00
Martin ratio: Return relative to average drawdown	7.15	7.12	+0.03

PMBS vs. VMBS - Sharpe Ratio Comparison

The current PMBS Sharpe Ratio is 1.58, which is comparable to the VMBS Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of PMBS 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.

Drawdowns

PMBS vs. VMBS - Drawdown Comparison

The maximum PMBS drawdown since its inception was -4.35%, smaller than the maximum VMBS drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for PMBS and VMBS.

Drawdown Indicators

	PMBS	VMBS	Difference
Max Drawdown Largest peak-to-trough decline	-4.35%	-17.47%	+13.12%
Max Drawdown (1Y) Largest decline over 1 year	-2.97%	-2.68%	-0.29%
Max Drawdown (3Y) Largest decline over 3 years	—	-7.65%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-17.12%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-17.47%	—
Current Drawdown Current decline from peak	-1.49%	-1.07%	-0.42%
Average Drawdown Average peak-to-trough decline	-1.15%	-2.49%	+1.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.93%	0.84%	+0.09%

Volatility

PMBS vs. VMBS - Volatility Comparison

PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) has a higher volatility of 1.28% compared to Vanguard Mortgage-Backed Securities ETF (VMBS) at 1.19%. This indicates that PMBS's price experiences larger fluctuations and is considered to be riskier than VMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PMBS	VMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.28%	1.19%	+0.09%
Volatility (6M) Calculated over the trailing 6-month period	3.21%	3.27%	-0.06%
Volatility (1Y) Calculated over the trailing 1-year period	4.20%	4.30%	-0.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.88%	6.78%	-1.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.88%	5.41%	-0.53%

PMBS vs. VMBS - Expense Ratio Comparison

PMBS has a 0.71% expense ratio, which is higher than VMBS's 0.04% expense ratio.

Dividends

PMBS vs. VMBS - Dividend Comparison

PMBS's dividend yield for the trailing twelve months is around 4.98%, more than VMBS's 4.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PMBS PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund	4.98%	4.73%	1.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VMBS Vanguard Mortgage-Backed Securities ETF	4.17%	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 PMBS and VMBS in my portfolio?

With a correlation of 0.96, PMBS and VMBS move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, PMBS or VMBS?

PMBS has higher volatility (1.28%) compared to VMBS (1.19%). In terms of maximum drawdown, PMBS dropped -4.35% vs VMBS's -17.47%.

Which ETF is better, PMBS or VMBS?

On 1-year performance, PMBS leads with 6.61% vs 6.00% 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, PMBS or VMBS?

Over the 1-year period, PMBS has performed better with a 6.61% return vs 6.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PMBS or VMBS?

VMBS is cheaper with a 0.04% expense ratio, compared with 0.71% for PMBS.

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

PMBS has the higher dividend yield at 4.98%, compared with 4.17% for VMBS.

What is the main difference between PMBS and VMBS?

They also come from different issuers: PIMCO and Vanguard. Their fees differ too: 0.71% for PMBS and 0.04% for VMBS.

Which has better risk-adjusted returns?

PMBS currently has the higher Sharpe Ratio (1.58 vs 1.40), 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.