VABS vs. VRAI

Last updated Jun 3, 2026

VABS (Virtus Newfleet ABS/MBS ETF) and VRAI (Virtus Real Asset Income ETF) are both exchange-traded funds - VABS is a Mortgage Backed Securities fund actively managed by Virtus Investment Partners, while VRAI is a REIT fund tracking the Indxx Real Asset Income Index. VABS is actively managed, while VRAI is passively managed. Over the past 5 years, VABS returned 3.26%/yr vs 5.43%/yr for VRAI. At a 0.09 correlation, their price movements are largely independent. VABS charges 0.39%/yr vs 0.55%/yr for VRAI.

Performance

VABS vs. VRAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus Newfleet ABS/MBS ETF (VABS) and Virtus Real Asset Income ETF (VRAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VABS achieves a 1.53% return, which is significantly lower than VRAI's 21.24% return.

VABS

• 1D: 0.04%
• 1M: 0.30%
• YTD: 1.53%
• 6M: 1.87%
• 1Y: 4.30%
• 3Y*: 6.36%
• 5Y*: 3.26%
• 10Y*: —

VRAI

• 1D: 1.09%
• 1M: -0.51%
• YTD: 21.24%
• 6M: 19.22%
• 1Y: 27.89%
• 3Y*: 12.02%
• 5Y*: 5.43%
• 10Y*: —

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

VABS vs. VRAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VABS Virtus Newfleet ABS/MBS ETF	1.53%	5.40%	7.59%	7.61%	-5.24%	0.45%
VRAI Virtus Real Asset Income ETF	21.24%	6.67%	2.66%	6.12%	-9.96%	18.63%

Correlation

The correlation between VABS and VRAI is 0.00, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.00
Correlation (3Y) Calculated over the trailing 3-year period	0.14
Correlation (5Y) Calculated over the trailing 5-year period	0.09
Correlation (All Time) Calculated using the full available price history since Feb 11, 2021	0.09

The correlation between VABS and VRAI shifts across timeframes, from 0.00 (1 year) to 0.14 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

VABS vs. VRAI — Risk / Return Rank

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

VABS

VABS Risk / Return Rank: 69
VABS Sharpe Ratio Rank: 62
VABS Sortino Ratio Rank: 62
VABS Omega Ratio Rank: 78
VABS Calmar Ratio Rank: 81
VABS Martin Ratio Rank: 61

VRAI

VRAI Risk / Return Rank: 78
VRAI Sharpe Ratio Rank: 71
VRAI Sortino Ratio Rank: 73
VRAI Omega Ratio Rank: 67
VRAI Calmar Ratio Rank: 91
VRAI Martin Ratio Rank: 87

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.

VABS vs. VRAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus Newfleet ABS/MBS ETF (VABS) and Virtus Real Asset Income ETF (VRAI). 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.

	VABS	VRAI	Difference
Sharpe ratio Return per unit of total volatility	2.12	2.36	-0.24
Sortino ratio Return per unit of downside risk	2.92	3.34	-0.42
Omega ratio Gain probability vs. loss probability	1.47	1.41	+0.06
Calmar ratio Return relative to maximum drawdown	4.33	5.99	-1.66
Martin ratio Return relative to average drawdown	11.19	18.91	-7.72
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VABS vs. VRAI - Sharpe Ratio Comparison

The current VABS Sharpe Ratio is 2.12, which is comparable to the VRAI Sharpe Ratio of 2.36. The chart below compares the historical Sharpe Ratios of VABS and VRAI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VABS	VRAI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.12	2.36	-0.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.43	0.33	+1.10
Sharpe Ratio (All Time) Calculated using the full available price history	1.41	0.29	+1.13

Drawdowns

VABS vs. VRAI - Drawdown Comparison

The maximum VABS drawdown since its inception was -7.12%, smaller than the maximum VRAI drawdown of -47.51%. Use the drawdown chart below to compare losses from any high point for VABS and VRAI.

Drawdown Indicators

	VABS	VRAI	Difference
Max Drawdown Largest peak-to-trough decline	-7.12%	-47.51%	+40.39%
Max Drawdown (1Y) Largest decline over 1 year	-0.98%	-4.82%	+3.84%
Max Drawdown (3Y) Largest decline over 3 years	-1.42%	-16.89%	+15.47%
Max Drawdown (5Y) Largest decline over 5 years	-7.12%	-26.71%	+19.59%
Current Drawdown Current decline from peak	0.00%	-0.91%	+0.91%
Average Drawdown Average peak-to-trough decline	-1.42%	-10.10%	+8.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.38%	1.53%	-1.15%

Volatility

VABS vs. VRAI - Volatility Comparison

The current volatility for Virtus Newfleet ABS/MBS ETF (VABS) is 0.39%, while Virtus Real Asset Income ETF (VRAI) has a volatility of 3.50%. This indicates that VABS experiences smaller price fluctuations and is considered to be less risky than VRAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VABS	VRAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.39%	3.50%	-3.11%
Volatility (6M) Calculated over the trailing 6-month period	1.07%	8.46%	-7.39%
Volatility (1Y) Calculated over the trailing 1-year period	2.04%	11.88%	-9.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.30%	16.64%	-14.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.24%	22.14%	-19.90%

VABS vs. VRAI - Expense Ratio Comparison

VABS has a 0.39% expense ratio, which is lower than VRAI's 0.55% expense ratio.

Dividends

VABS vs. VRAI - Dividend Comparison

VABS's dividend yield for the trailing twelve months is around 5.18%, more than VRAI's 3.23% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
VABS Virtus Newfleet ABS/MBS ETF	5.18%	4.94%	5.05%	4.13%	2.47%	1.47%	0.00%	0.00%
VRAI Virtus Real Asset Income ETF	3.23%	4.68%	7.13%	5.02%	4.48%	3.34%	3.91%	2.80%

Frequently Asked Questions

Can I hold both VABS and VRAI in my portfolio?

VABS and VRAI have a correlation of 0.00, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VABS or VRAI?

VRAI has higher volatility (3.50%) compared to VABS (0.39%). In terms of maximum drawdown, VABS dropped -7.12% vs VRAI's -47.51%.

Which ETF is better, VABS or VRAI?

On 5-year performance, VRAI leads with 5.43% vs 3.26% for VABS. On fees, VABS is cheaper at 0.39% per year. On volatility, VABS has been the lower-risk option at 0.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VABS or VRAI?

Over the 5-year period, VRAI has performed better with a 5.43% return vs 3.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VABS or VRAI?

VABS is cheaper with a 0.39% expense ratio, compared with 0.55% for VRAI.

Which ETF pays a higher dividend yield, VABS or VRAI?

VABS has the higher dividend yield at 5.18%, compared with 3.23% for VRAI.

What is the main difference between VABS and VRAI?

VABS is categorized as Mortgage Backed Securities, while VRAI is REIT. Their fees differ too: 0.39% for VABS and 0.55% for VRAI.

Which has better risk-adjusted returns?

VRAI currently has the higher Sharpe Ratio (2.36 vs 2.12), 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.