VMBIX vs. VDIGX
VMBIX (Vanguard Mortgage-Backed Securities Index Fund Institutional Shares) and VDIGX (Vanguard Dividend Growth Fund) are both mutual funds - VMBIX is a Total Bond Market fund managed by Vanguard, while VDIGX is a Dividend fund actively managed by Vanguard. Over the past 10 years, VMBIX returned 1.41%/yr vs 12.30%/yr for VDIGX. At a correlation of -0.03, they often move in opposite directions. VMBIX charges 0.05%/yr vs 0.22%/yr for VDIGX.
Performance
VMBIX vs. VDIGX - Performance Comparison
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Returns By Period
In the year-to-date period, VMBIX achieves a 0.86% return, which is significantly lower than VDIGX's 2.63% return. Over the past 10 years, VMBIX has underperformed VDIGX with an annualized return of 1.41%, while VDIGX has yielded a comparatively higher 12.30% annualized return.
VMBIX
- 1D
- 0.04%
- 1M
- 0.47%
- YTD
- 0.86%
- 6M
- 1.01%
- 1Y
- 7.00%
- 3Y*
- 4.71%
- 5Y*
- 0.57%
- 10Y*
- 1.41%
VDIGX
- 1D
- 0.32%
- 1M
- 3.43%
- YTD
- 2.63%
- 6M
- 2.55%
- 1Y
- 8.31%
- 3Y*
- 14.07%
- 5Y*
- 9.83%
- 10Y*
- 12.30%
VMBIX vs. VDIGX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VMBIX Vanguard Mortgage-Backed Securities Index Fund Institutional Shares | 0.86% | 8.44% | 1.78% | 4.97% | -11.56% | -1.30% | 3.77% | 6.19% | 0.88% | 2.38% |
VDIGX Vanguard Dividend Growth Fund | 2.63% | 11.11% | 20.84% | 8.11% | -4.89% | 24.86% | 12.04% | 30.94% | 0.08% | 19.32% |
Correlation
The correlation between VMBIX and VDIGX is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.34 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.30 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.10 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | -0.03 |
The correlation between VMBIX and VDIGX shifts across timeframes, from -0.03 (all time) to 0.34 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VMBIX vs. VDIGX — Risk / Return Rank
VMBIX
VDIGX
VMBIX vs. VDIGX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities Index Fund Institutional Shares (VMBIX) and Vanguard Dividend Growth Fund (VDIGX). 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.
| VMBIX | VDIGX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.00 | ||
| Sortino ratioReturn per unit of downside risk | +1.47 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.15 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 2.67 | 0.95 | +1.72 |
| Martin ratioReturn relative to average drawdown | 9.15 | 3.67 | +5.48 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VMBIX | VDIGX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.86 | 0.86 | +1.00 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.09 | 0.71 | -0.62 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.29 | 0.79 | -0.49 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.51 | 0.62 | -0.10 |
Drawdowns
VMBIX vs. VDIGX - Drawdown Comparison
The maximum VMBIX drawdown since its inception was -17.44%, smaller than the maximum VDIGX drawdown of -45.23%. Use the drawdown chart below to compare losses from any high point for VMBIX and VDIGX.
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Drawdown Indicators
| VMBIX | VDIGX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.44% | -45.23% | +27.79% |
Max Drawdown (1Y)Largest decline over 1 year | -2.63% | -9.09% | +6.46% |
Max Drawdown (3Y)Largest decline over 3 years | -7.51% | -10.23% | +2.72% |
Max Drawdown (5Y)Largest decline over 5 years | -17.11% | -16.18% | -0.93% |
Max Drawdown (10Y)Largest decline over 10 years | -17.44% | -32.98% | +15.54% |
Current DrawdownCurrent decline from peak | -1.15% | -0.10% | -1.05% |
Average DrawdownAverage peak-to-trough decline | -2.51% | -6.65% | +4.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.77% | 2.36% | -1.59% |
Volatility
VMBIX vs. VDIGX - Volatility Comparison
The current volatility for Vanguard Mortgage-Backed Securities Index Fund Institutional Shares (VMBIX) is 1.47%, while Vanguard Dividend Growth Fund (VDIGX) has a volatility of 2.33%. This indicates that VMBIX experiences smaller price fluctuations and is considered to be less risky than VDIGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VMBIX | VDIGX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.47% | 2.33% | -0.86% |
Volatility (6M)Calculated over the trailing 6-month period | 2.77% | 7.61% | -4.84% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.80% | 10.06% | -6.26% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.37% | 13.86% | -7.49% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.79% | 15.70% | -10.91% |
VMBIX vs. VDIGX - Expense Ratio Comparison
VMBIX has a 0.05% expense ratio, which is lower than VDIGX's 0.22% 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
VMBIX vs. VDIGX - Dividend Comparison
VMBIX's dividend yield for the trailing twelve months is around 4.18%, less than VDIGX's 23.93% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VDIGX Vanguard Dividend Growth Fund | 23.93% | 21.90% | 21.94% | 2.29% | 6.06% | 5.45% | 2.83% | 4.70% | 8.72% | 5.16% | 2.86% | 5.70% |
VMBIX Vanguard Mortgage-Backed Securities Index Fund Institutional Shares | 4.18% | 4.20% | 4.27% | 3.29% | 2.33% | 1.01% | 2.02% | 2.76% | 2.74% | 2.18% | 2.13% | 2.04% |
Frequently Asked Questions
VMBIX and VDIGX have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VDIGX has higher volatility (2.33%) compared to VMBIX (1.47%). In terms of maximum drawdown, VMBIX dropped -17.44% vs VDIGX's -45.23%.
VMBIX currently has the higher Sharpe Ratio (1.86 vs 0.86), 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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