VCIT vs. MBB
VCIT (Vanguard Intermediate-Term Corporate Bond ETF) and MBB (iShares MBS Bond ETF) are both exchange-traded funds - VCIT is a Corporate Bonds fund tracking the Bloomberg U.S. 5-10 Year Corporate Bond Index, while MBB is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index. Both are passively managed. Over the past 10 years, VCIT returned 2.93%/yr vs 1.31%/yr for MBB. A 0.78 correlation means they provide meaningful diversification when combined. VCIT charges 0.03%/yr vs 0.06%/yr for MBB.
Performance
VCIT vs. MBB - Performance Comparison
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Returns By Period
In the year-to-date period, VCIT achieves a 0.41% return, which is significantly lower than MBB's 0.86% return. Over the past 10 years, VCIT has outperformed MBB with an annualized return of 2.93%, while MBB has yielded a comparatively lower 1.31% annualized return.
VCIT
- 1D
- -0.07%
- 1M
- 0.96%
- YTD
- 0.41%
- 6M
- 0.89%
- 1Y
- 6.00%
- 3Y*
- 6.37%
- 5Y*
- 1.11%
- 10Y*
- 2.93%
MBB
- 1D
- -0.15%
- 1M
- 1.22%
- YTD
- 0.86%
- 6M
- 1.51%
- 1Y
- 6.41%
- 3Y*
- 4.55%
- 5Y*
- 0.38%
- 10Y*
- 1.31%
VCIT vs. MBB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0.41% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
MBB iShares MBS Bond ETF | 0.86% | 8.38% | 1.31% | 5.01% | -11.74% | -1.43% | 4.08% | 6.18% | 0.82% | 2.49% |
Correlation
The correlation between VCIT and MBB is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.92 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.93 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.91 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.84 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.78 |
The correlation between VCIT and MBB shifts across timeframes, from 0.78 (all time) to 0.93 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VCIT vs. MBB — Risk / Return Rank
VCIT
MBB
VCIT vs. MBB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and iShares MBS Bond ETF (MBB). 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.
| VCIT | MBB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.03 | ||
| Sortino ratioReturn per unit of downside risk | +0.06 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.24 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 1.88 | 2.01 | -0.12 |
| Martin ratioReturn relative to average drawdown | 6.07 | 6.39 | -0.32 |
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Drawdowns
VCIT vs. MBB - Drawdown Comparison
The maximum VCIT drawdown since its inception was -20.56%, which is greater than MBB's maximum drawdown of -17.64%. Use the drawdown chart below to compare losses from any high point for VCIT and MBB.
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Drawdown Indicators
| VCIT | MBB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.56% | -17.64% | -2.92% |
Max Drawdown (1Y)Largest decline over 1 year | -2.96% | -2.94% | -0.02% |
Max Drawdown (3Y)Largest decline over 3 years | -6.11% | -7.68% | +1.57% |
Max Drawdown (5Y)Largest decline over 5 years | -20.56% | -17.19% | -3.37% |
Max Drawdown (10Y)Largest decline over 10 years | -20.56% | -17.64% | -2.92% |
Current DrawdownCurrent decline from peak | -1.13% | -1.24% | +0.11% |
Average DrawdownAverage peak-to-trough decline | -3.16% | -2.35% | -0.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.92% | 0.00% |
Volatility
VCIT vs. MBB - Volatility Comparison
The current volatility for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) is 1.48%, while iShares MBS Bond ETF (MBB) has a volatility of 1.58%. This indicates that VCIT experiences smaller price fluctuations and is considered to be less risky than MBB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCIT | MBB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.48% | 1.58% | -0.10% |
Volatility (6M)Calculated over the trailing 6-month period | 3.15% | 3.28% | -0.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.10% | 4.46% | -0.36% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.62% | 6.82% | -0.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.28% | 5.31% | +0.97% |
VCIT vs. MBB - Expense Ratio Comparison
VCIT has a 0.03% expense ratio, which is lower than MBB's 0.06% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VCIT vs. MBB - Dividend Comparison
VCIT's dividend yield for the trailing twelve months is around 4.79%, more than MBB's 4.26% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 4.26% | 4.21% | 3.94% | 3.40% | 2.31% | 1.05% | 2.10% | 2.77% | 2.64% | 2.23% | 2.58% | 2.66% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.79% | 4.62% | 4.43% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% |
Frequently Asked Questions
With a correlation of 0.92, VCIT and MBB 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.
MBB has higher volatility (1.58%) compared to VCIT (1.48%). In terms of maximum drawdown, VCIT dropped -20.56% vs MBB's -17.64%.
On 10-year performance, VCIT leads with 2.93% vs 1.31% for MBB. On fees, VCIT is cheaper at 0.03% per year. On volatility, VCIT has been the lower-risk option at 1.48%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VCIT has performed better with a 2.93% return vs 1.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCIT is cheaper with a 0.03% expense ratio, compared with 0.06% for MBB.
VCIT has the higher dividend yield at 4.79%, compared with 4.26% for MBB.
VCIT is categorized as Corporate Bonds, while MBB is Mortgage Backed Securities. VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index, while MBB tracks Barclays Capital U.S. MBS Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VCIT and 0.06% for MBB.
VCIT currently has the higher Sharpe Ratio (1.36 vs 1.33), 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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