VMBS vs. BND
Compare and contrast key facts about Vanguard Mortgage-Backed Securities ETF (VMBS) and Vanguard Total Bond Market ETF (BND).
VMBS and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VMBS is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. MBS Index. It was launched on Nov 19, 2009. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both VMBS and BND are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VMBS or BND.
Correlation
The correlation between VMBS and BND is -0.05. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
VMBS vs. BND - Performance Comparison
Key characteristics
VMBS:
1.39
BND:
1.36
VMBS:
2.04
BND:
1.98
VMBS:
1.25
BND:
1.24
VMBS:
0.69
BND:
0.54
VMBS:
4.19
BND:
3.51
VMBS:
1.96%
BND:
2.06%
VMBS:
5.92%
BND:
5.29%
VMBS:
-17.52%
BND:
-18.84%
VMBS:
-4.24%
BND:
-6.72%
Returns By Period
The year-to-date returns for both stocks are quite close, with VMBS having a 3.01% return and BND slightly lower at 2.90%. Over the past 10 years, VMBS has underperformed BND with an annualized return of 1.06%, while BND has yielded a comparatively higher 1.51% annualized return.
VMBS
3.01%
-0.26%
2.97%
8.23%
-0.77%
1.06%
BND
2.90%
-0.20%
2.25%
7.25%
-0.79%
1.51%
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VMBS vs. BND - Expense Ratio Comparison
VMBS has a 0.04% expense ratio, which is higher than BND's 0.03% 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%.
Risk-Adjusted Performance
VMBS vs. BND — Risk-Adjusted Performance Rank
VMBS
BND
VMBS vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and Vanguard Total Bond Market ETF (BND). 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.
Dividends
VMBS vs. BND - Dividend Comparison
VMBS's dividend yield for the trailing twelve months is around 4.10%, more than BND's 3.73% yield.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 4.10% | 3.94% | 3.31% | 2.35% | 1.02% | 1.81% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% | 1.90% |
BND Vanguard Total Bond Market ETF | 3.73% | 3.67% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% |
Drawdowns
VMBS vs. BND - Drawdown Comparison
The maximum VMBS drawdown since its inception was -17.52%, smaller than the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for VMBS and BND. For additional features, visit the drawdowns tool.
Volatility
VMBS vs. BND - Volatility Comparison
Vanguard Mortgage-Backed Securities ETF (VMBS) has a higher volatility of 2.63% compared to Vanguard Total Bond Market ETF (BND) at 2.13%. This indicates that VMBS's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.