VDST.L vs. MBS

Last updated Jun 4, 2026

VDST.L (Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF (USD) Accumulating) and MBS (Angel Oak Mortgage-Backed Securities ETF) are both exchange-traded funds - VDST.L is a Government Bonds fund tracking the Bloomberg Short Treasury Index, while MBS is a Intermediate Core-Plus Bond fund actively managed by Angel Oak. VDST.L is passively managed, while MBS is actively managed. Over the past year, VDST.L returned 3.94% vs 6.88% for MBS. At a 0.13 correlation, their price movements are largely independent. VDST.L charges 0.05%/yr vs 0.49%/yr for MBS.

Performance

VDST.L vs. MBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF (USD) Accumulating (VDST.L) and Angel Oak Mortgage-Backed Securities ETF (MBS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VDST.L achieves a 1.42% return, which is significantly higher than MBS's 0.62% return.

VDST.L

• 1D: 0.01%
• 1M: 0.28%
• YTD: 1.42%
• 6M: 1.74%
• 1Y: 3.94%
• 3Y*: 4.70%
• 5Y*: 3.35%
• 10Y*: —

MBS

• 1D: -0.29%
• 1M: -0.22%
• YTD: 0.62%
• 6M: 0.84%
• 1Y: 6.88%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VDST.L vs. MBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VDST.L Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF (USD) Accumulating	1.42%	4.26%	4.51%
MBS Angel Oak Mortgage-Backed Securities ETF	0.62%	8.13%	5.78%

Correlation

The correlation between VDST.L and MBS is 0.10, 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	0.10
Correlation (All Time) Calculated using the full available price history since Feb 21, 2024	0.13

Return for Risk

VDST.L vs. MBS — Risk / Return Rank

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

VDST.L

VDST.L Risk / Return Rank: 99
VDST.L Sharpe Ratio Rank: 99
VDST.L Sortino Ratio Rank: 99
VDST.L Omega Ratio Rank: 99
VDST.L Calmar Ratio Rank: 99
VDST.L Martin Ratio Rank: 99

MBS

MBS Risk / Return Rank: 69
MBS Sharpe Ratio Rank: 72
MBS Sortino Ratio Rank: 79
MBS Omega Ratio Rank: 75
MBS Calmar Ratio Rank: 64
MBS Martin Ratio Rank: 57

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.

VDST.L vs. MBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF (USD) Accumulating (VDST.L) and Angel Oak Mortgage-Backed Securities ETF (MBS). 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.

	VDST.L	MBS	Difference
Sharpe ratio: Return per unit of total volatility	9.29	2.36	+6.93
Sortino ratio: Return per unit of downside risk	22.08	3.54	+18.55
Omega ratio: Gain probability vs. loss probability	4.86	1.45	+3.42
Calmar ratio: Return relative to maximum drawdown	35.91	3.14	+32.77
Martin ratio: Return relative to average drawdown	243.54	9.89	+233.65
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VDST.L vs. MBS - Sharpe Ratio Comparison

The current VDST.L Sharpe Ratio is 9.29, which is higher than the MBS Sharpe Ratio of 2.36. The chart below compares the historical Sharpe Ratios of VDST.L and MBS, 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

	VDST.L	MBS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	9.29	2.36	+6.93
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	8.03	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	7.82	1.60	+6.22

Drawdowns

VDST.L vs. MBS - Drawdown Comparison

The maximum VDST.L drawdown since its inception was -0.36%, smaller than the maximum MBS drawdown of -4.09%. Use the drawdown chart below to compare losses from any high point for VDST.L and MBS.

Drawdown Indicators

	VDST.L	MBS	Difference
Max Drawdown Largest peak-to-trough decline	-0.36%	-4.09%	+3.73%
Max Drawdown (1Y) Largest decline over 1 year	-0.11%	-2.20%	+2.09%
Max Drawdown (3Y) Largest decline over 3 years	-0.15%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-0.36%	—	—
Current Drawdown Current decline from peak	-0.01%	-1.46%	+1.45%
Average Drawdown Average peak-to-trough decline	-0.03%	-1.02%	+0.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.02%	0.70%	-0.68%

Volatility

VDST.L vs. MBS - Volatility Comparison

The current volatility for Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF (USD) Accumulating (VDST.L) is 0.12%, while Angel Oak Mortgage-Backed Securities ETF (MBS) has a volatility of 0.90%. This indicates that VDST.L experiences smaller price fluctuations and is considered to be less risky than MBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDST.L	MBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.12%	0.90%	-0.78%
Volatility (6M) Calculated over the trailing 6-month period	0.33%	2.00%	-1.67%
Volatility (1Y) Calculated over the trailing 1-year period	0.42%	2.93%	-2.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.47%	3.99%	-3.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.46%	3.99%	-3.53%

VDST.L vs. MBS - Expense Ratio Comparison

VDST.L has a 0.05% expense ratio, which is lower than MBS's 0.49% expense ratio.

Dividends

VDST.L vs. MBS - Dividend Comparison

VDST.L has not paid dividends to shareholders, while MBS's dividend yield for the trailing twelve months is around 5.61%.

Position	TTM	2025	2024
MBS Angel Oak Mortgage-Backed Securities ETF	5.61%	5.28%	4.52%
VDST.L Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF (USD) Accumulating	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VDST.L and MBS in my portfolio?

VDST.L and MBS have a correlation of 0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VDST.L or MBS?

On fees, VDST.L is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VDST.L or MBS?

VDST.L is cheaper with a 0.05% expense ratio, compared with 0.49% for MBS.

What is the main difference between VDST.L and MBS?

VDST.L is categorized as Government Bonds, while MBS is Intermediate Core-Plus Bond. They also come from different issuers: Vanguard and Angel Oak. Their fees differ too: 0.05% for VDST.L and 0.49% for MBS.