VGK vs. MBB
VGK (Vanguard FTSE Europe ETF) and MBB (iShares MBS Bond ETF) are both exchange-traded funds - VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap 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, VGK returned 10.28%/yr vs 1.31%/yr for MBB. At a correlation of -0.02, they often move in opposite directions. Both charge a 0.06% expense ratio.
Performance
VGK vs. MBB - Performance Comparison
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Returns By Period
In the year-to-date period, VGK achieves a 7.69% return, which is significantly higher than MBB's 0.86% return. Over the past 10 years, VGK has outperformed MBB with an annualized return of 10.28%, while MBB has yielded a comparatively lower 1.31% annualized return.
VGK
- 1D
- 0.18%
- 1M
- 4.46%
- YTD
- 7.69%
- 6M
- 9.92%
- 1Y
- 19.73%
- 3Y*
- 16.69%
- 5Y*
- 8.50%
- 10Y*
- 10.28%
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%
VGK vs. MBB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGK Vanguard FTSE Europe ETF | 7.69% | 35.83% | 1.88% | 20.19% | -15.98% | 16.89% | 5.43% | 24.85% | -14.89% | 26.98% |
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 VGK and MBB is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.46 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.37 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.28 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.14 |
Correlation (All Time) Calculated using the full available price history since Mar 16, 2007 | -0.02 |
The correlation between VGK and MBB shifts across timeframes, from -0.02 (all time) to 0.46 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VGK vs. MBB — Risk / Return Rank
VGK
MBB
VGK vs. MBB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) 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.
| VGK | MBB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.20 | ||
| Sortino ratioReturn per unit of downside risk | -0.28 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.24 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.49 | 2.01 | -0.52 |
| Martin ratioReturn relative to average drawdown | 5.52 | 6.39 | -0.88 |
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Drawdowns
VGK vs. MBB - Drawdown Comparison
The maximum VGK drawdown since its inception was -63.61%, which is greater than MBB's maximum drawdown of -17.64%. Use the drawdown chart below to compare losses from any high point for VGK and MBB.
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Drawdown Indicators
| VGK | MBB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -63.61% | -17.64% | -45.97% |
Max Drawdown (1Y)Largest decline over 1 year | -12.09% | -2.94% | -9.15% |
Max Drawdown (3Y)Largest decline over 3 years | -14.31% | -7.68% | -6.63% |
Max Drawdown (5Y)Largest decline over 5 years | -32.74% | -17.19% | -15.55% |
Max Drawdown (10Y)Largest decline over 10 years | -37.24% | -17.64% | -19.60% |
Current DrawdownCurrent decline from peak | -0.50% | -1.24% | +0.74% |
Average DrawdownAverage peak-to-trough decline | -13.33% | -2.35% | -10.98% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.27% | 0.92% | +2.35% |
Volatility
VGK vs. MBB - Volatility Comparison
Vanguard FTSE Europe ETF (VGK) has a higher volatility of 5.82% compared to iShares MBS Bond ETF (MBB) at 1.58%. This indicates that VGK's price experiences larger fluctuations and is considered to be riskier 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
| VGK | MBB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.82% | 1.58% | +4.24% |
Volatility (6M)Calculated over the trailing 6-month period | 13.36% | 3.28% | +10.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.92% | 4.46% | +11.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.98% | 6.82% | +11.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.95% | 5.31% | +13.64% |
VGK vs. MBB - Expense Ratio Comparison
Both VGK and MBB have an expense ratio of 0.06%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VGK vs. MBB - Dividend Comparison
VGK's dividend yield for the trailing twelve months is around 2.76%, less 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% |
VGK Vanguard FTSE Europe ETF | 2.76% | 2.86% | 3.61% | 3.15% | 3.25% | 3.05% | 2.11% | 3.27% | 3.95% | 2.70% | 3.52% | 3.25% |
Frequently Asked Questions
VGK and MBB have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGK has higher volatility (5.82%) compared to MBB (1.58%). In terms of maximum drawdown, VGK dropped -63.61% vs MBB's -17.64%.
On 10-year performance, VGK leads with 10.28% vs 1.31% for MBB. Both ETFs have the same 0.06% expense ratio. On volatility, MBB has been the lower-risk option at 1.58%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VGK has performed better with a 10.28% return vs 1.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGK and MBB have the same expense ratio: 0.06% per year.
MBB has the higher dividend yield at 4.26%, compared with 2.76% for VGK.
VGK is categorized as Europe Equities, while MBB is Mortgage Backed Securities. VGK tracks FTSE Developed Europe All Cap Index, while MBB tracks Barclays Capital U.S. MBS Index. They also come from different issuers: Vanguard and iShares.
MBB currently has the higher Sharpe Ratio (1.33 vs 1.13), 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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