VFIJX vs. VMBS

Last updated Jun 4, 2026

VFIJX (Vanguard GNMA Fund Admiral Shares) and VMBS (Vanguard Mortgage-Backed Securities ETF) are both funds - VFIJX is a Government Bonds fund managed by Vanguard, while VMBS is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index. Over the past 10 years, VFIJX returned 1.41%/yr vs 1.35%/yr for VMBS. A 0.80 correlation means they provide meaningful diversification when combined. VFIJX charges 0.11%/yr vs 0.04%/yr for VMBS.

Performance

VFIJX vs. VMBS - Performance Comparison

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

Returns By Period

In the year-to-date period, VFIJX achieves a 0.83% return, which is significantly higher than VMBS's 0.66% return. Both investments have delivered pretty close results over the past 10 years, with VFIJX having a 1.41% annualized return and VMBS not far behind at 1.35%.

VFIJX

• 1D: 0.00%
• 1M: 0.32%
• YTD: 0.83%
• 6M: 0.94%
• 1Y: 6.46%
• 3Y*: 4.35%
• 5Y*: 0.58%
• 10Y*: 1.41%

VMBS

• 1D: -0.15%
• 1M: 0.33%
• YTD: 0.66%
• 6M: 0.85%
• 1Y: 6.93%
• 3Y*: 4.60%
• 5Y*: 0.48%
• 10Y*: 1.35%

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

VFIJX vs. VMBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFIJX Vanguard GNMA Fund Admiral Shares	0.83%	7.84%	1.17%	5.28%	-10.72%	-1.15%	3.84%	5.94%	0.99%	1.98%
VMBS Vanguard Mortgage-Backed Securities ETF	0.66%	8.36%	1.70%	5.34%	-11.90%	-1.28%	3.76%	6.19%	0.91%	2.47%

Correlation

The correlation between VFIJX and VMBS is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009	0.80

The correlation between VFIJX and VMBS shifts across timeframes, from 0.80 (all time) to 0.94 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VFIJX vs. VMBS — Risk / Return Rank

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

VFIJX

VFIJX Risk / Return Rank: 34
VFIJX Sharpe Ratio Rank: 32
VFIJX Sortino Ratio Rank: 35
VFIJX Omega Ratio Rank: 32
VFIJX Calmar Ratio Rank: 40
VFIJX Martin Ratio Rank: 34

VMBS

VMBS Risk / Return Rank: 48
VMBS Sharpe Ratio Rank: 45
VMBS Sortino Ratio Rank: 48
VMBS Omega Ratio Rank: 45
VMBS Calmar Ratio Rank: 52
VMBS Martin Ratio Rank: 51

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.

VFIJX vs. VMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard GNMA Fund Admiral Shares (VFIJX) 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.

	VFIJX	VMBS	Difference
Sharpe ratio: Return per unit of total volatility	1.63	1.59	+0.04
Sortino ratio: Return per unit of downside risk	2.46	2.38	+0.08
Omega ratio: Gain probability vs. loss probability	1.30	1.29	+0.01
Calmar ratio: Return relative to maximum drawdown	2.39	2.59	-0.20
Martin ratio: Return relative to average drawdown	7.61	8.68	-1.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFIJX vs. VMBS - Sharpe Ratio Comparison

The current VFIJX Sharpe Ratio is 1.63, which is comparable to the VMBS Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of VFIJX 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.

Sharpe Ratios by Period

	VFIJX	VMBS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.63	1.59	+0.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.09	0.07	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.30	0.25	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.82	0.46	+0.36

Drawdowns

VFIJX vs. VMBS - Drawdown Comparison

The maximum VFIJX drawdown since its inception was -16.06%, smaller than the maximum VMBS drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for VFIJX and VMBS.

Drawdown Indicators

	VFIJX	VMBS	Difference
Max Drawdown Largest peak-to-trough decline	-16.06%	-17.47%	+1.41%
Max Drawdown (1Y) Largest decline over 1 year	-2.71%	-2.68%	-0.03%
Max Drawdown (3Y) Largest decline over 3 years	-6.95%	-7.65%	+0.70%
Max Drawdown (5Y) Largest decline over 5 years	-15.68%	-17.12%	+1.44%
Max Drawdown (10Y) Largest decline over 10 years	-16.06%	-17.47%	+1.41%
Current Drawdown Current decline from peak	-1.35%	-1.33%	-0.02%
Average Drawdown Average peak-to-trough decline	-1.74%	-2.49%	+0.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.85%	0.80%	+0.05%

Volatility

VFIJX vs. VMBS - Volatility Comparison

The current volatility for Vanguard GNMA Fund Admiral Shares (VFIJX) is 1.38%, while Vanguard Mortgage-Backed Securities ETF (VMBS) has a volatility of 1.62%. This indicates that VFIJX 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.

Volatility by Period

	VFIJX	VMBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.38%	1.62%	-0.24%
Volatility (6M) Calculated over the trailing 6-month period	2.84%	3.16%	-0.32%
Volatility (1Y) Calculated over the trailing 1-year period	3.98%	4.37%	-0.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.21%	6.77%	-0.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.70%	5.40%	-0.70%

VFIJX vs. VMBS - Expense Ratio Comparison

VFIJX has a 0.11% expense ratio, which is higher than VMBS's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VFIJX vs. VMBS - Dividend Comparison

VFIJX's dividend yield for the trailing twelve months is around 3.78%, less than VMBS's 4.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFIJX Vanguard GNMA Fund Admiral Shares	3.78%	3.72%	3.67%	3.34%	2.45%	0.73%	1.98%	2.86%	3.00%	2.73%	3.11%	2.94%
VMBS Vanguard Mortgage-Backed Securities ETF	4.19%	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 VFIJX and VMBS in my portfolio?

With a correlation of 0.90, VFIJX 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, VFIJX or VMBS?

VMBS has higher volatility (1.62%) compared to VFIJX (1.38%). In terms of maximum drawdown, VFIJX dropped -16.06% vs VMBS's -17.47%.

Which has better risk-adjusted returns?

VFIJX currently has the higher Sharpe Ratio (1.63 vs 1.59), 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.