VABS vs. VMBS
VABS (Virtus Newfleet ABS/MBS ETF) and VMBS (Vanguard Mortgage-Backed Securities ETF) are both Mortgage Backed Securities funds. VABS is actively managed, while VMBS is passively managed. Over the past 5 years, VABS returned 3.26%/yr vs 0.25%/yr for VMBS. Their 0.66 correlation means they have sometimes moved together and sometimes differently. VABS charges 0.39%/yr vs 0.04%/yr for VMBS.
Performance
VABS vs. VMBS - Performance Comparison
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Returns By Period
In the year-to-date period, VABS achieves a 2.04% return, which is significantly higher than VMBS's -0.12% return.
VABS
- 1D
- -0.08%
- 1M
- 0.13%
- 6M
- 1.54%
- YTD
- 2.04%
- 1Y
- 3.38%
- 3Y*
- 6.16%
- 5Y*
- 3.26%
- 10Y*
- —
- ALL TIME*
- 3.14%
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) |
|---|---|---|---|
| $47.74K | $55.28K | $583.29K | |
| $62.70M | $62.14M | $62.59M |
VABS vs. VMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
VABS Virtus Newfleet ABS/MBS ETF | 2.04% | 5.40% | 7.59% | 7.61% | -5.24% | 0.37% |
VMBS Vanguard Mortgage-Backed Securities ETF | -0.12% | 8.36% | 1.70% | 5.34% | -11.90% | -1.32% |
Correlation
The correlation between VABS and VMBS is 0.60, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.60 |
Correlation (3Y) Balances recent behavior with more history. | 0.65 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.67 |
Correlation (All Time) Calculated using the full available price history since Feb 10, 2021 | 0.66 |
The correlation between VABS and VMBS has been stable across timeframes, ranging from 0.60 to 0.67 - a consistent structural relationship.
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Return for Risk
VABS vs. VMBS — Risk / Return Rank
VABS
VMBS
VABS vs. VMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Virtus Newfleet ABS/MBS ETF (VABS) 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.
| VABS | VMBS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.97 | ||
| Sortino ratioReturn per unit of downside risk | +1.23 | ||
| Omega ratioGain probability vs. loss probability | 1.43 | 1.18 | +0.25 |
| Calmar ratioReturn relative to maximum drawdown | 3.80 | 1.61 | +2.18 |
| Martin ratioReturn relative to average drawdown | 9.93 | 4.60 | +5.33 |
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Drawdowns
VABS vs. VMBS - Drawdown Comparison
The maximum VABS drawdown since its inception was -7.12%, smaller than the maximum VMBS drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for VABS and VMBS.
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Drawdown Indicators
| VABS | VMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -7.12% | -17.47% | +10.35% |
Max Drawdown (1Y)Largest decline over 1 year | -0.98% | -2.68% | +1.70% |
Max Drawdown (3Y)Largest decline over 3 years | -1.42% | -6.41% | +4.99% |
Max Drawdown (5Y)Largest decline over 5 years | -7.12% | -17.09% | +9.97% |
Max Drawdown (10Y)Largest decline over 10 years | — | -17.47% | — |
Current DrawdownCurrent decline from peak | -0.12% | -2.09% | +1.97% |
Average DrawdownAverage peak-to-trough decline | -1.38% | -2.48% | +1.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.38% | 0.94% | -0.56% |
Volatility
VABS vs. VMBS - Volatility Comparison
The current volatility for Virtus Newfleet ABS/MBS ETF (VABS) is 0.47%, while Vanguard Mortgage-Backed Securities ETF (VMBS) has a volatility of 1.17%. This indicates that VABS 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
| VABS | VMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.47% | 1.17% | -0.70% |
Volatility (6M)Calculated over the trailing 6-month period | 1.14% | 3.42% | -2.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.89% | 4.29% | -2.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.31% | 6.80% | -4.49% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.22% | 5.42% | -3.20% |
VABS vs. VMBS - Expense Ratio Comparison
VABS has a 0.39% expense ratio, which is higher than VMBS's 0.04% expense ratio.
Dividends
VABS vs. VMBS - Dividend Comparison
VABS's dividend yield for the trailing twelve months is around 5.03%, more than VMBS's 4.24% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VABS Virtus Newfleet ABS/MBS ETF | 5.03% | 4.94% | 5.05% | 4.13% | 2.47% | 1.47% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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
VABS and VMBS have a correlation of 0.60, 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 VABS (0.47%). In terms of maximum drawdown, VABS dropped -7.12% vs VMBS's -17.47%.
On 5-year performance, VABS leads with 3.26% vs 0.25% for VMBS. On fees, VMBS is cheaper at 0.04% per year. On volatility, VABS has been the lower-risk option at 0.47%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VABS has performed better with a 3.26% return vs 0.25%. 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 0.39% for VABS.
VABS has the higher dividend yield at 5.03%, compared with 3.88% for VMBS.
They also come from different issuers: Virtus and Vanguard. Their fees differ too: 0.39% for VABS and 0.04% for VMBS.
VABS currently has the higher Sharpe Ratio (1.98 vs 1.01), 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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