VMBS vs. BNDW
Compare and contrast key facts about Vanguard Mortgage-Backed Securities ETF (VMBS) and Vanguard Total World Bond ETF (BNDW).
VMBS and BNDW 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. BNDW is a passively managed fund by Vanguard that tracks the performance of the Bloomberg Barclays Global Aggregate Float Adjusted TR Index. It was launched on Sep 4, 2018. Both VMBS and BNDW 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 BNDW.
Correlation
The correlation between VMBS and BNDW is 0.07, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
VMBS vs. BNDW - Performance Comparison
Key characteristics
VMBS:
1.01
BNDW:
1.24
VMBS:
1.53
BNDW:
1.80
VMBS:
1.18
BNDW:
1.22
VMBS:
0.56
BNDW:
0.50
VMBS:
3.12
BNDW:
4.49
VMBS:
1.98%
BNDW:
1.16%
VMBS:
5.95%
BNDW:
4.26%
VMBS:
-17.52%
BNDW:
-17.22%
VMBS:
-4.82%
BNDW:
-4.77%
Returns By Period
In the year-to-date period, VMBS achieves a 2.38% return, which is significantly higher than BNDW's 1.71% return.
VMBS
2.38%
0.36%
1.78%
5.97%
-0.95%
1.01%
BNDW
1.71%
0.66%
1.44%
5.25%
-0.34%
N/A
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VMBS vs. BNDW - Expense Ratio Comparison
VMBS has a 0.04% expense ratio, which is lower than BNDW's 0.06% 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%.
Risk-Adjusted Performance
VMBS vs. BNDW — Risk-Adjusted Performance Rank
VMBS
BNDW
VMBS vs. BNDW - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and Vanguard Total World Bond ETF (BNDW). 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. BNDW - Dividend Comparison
VMBS's dividend yield for the trailing twelve months is around 4.12%, more than BNDW's 4.00% yield.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 4.12% | 3.94% | 3.31% | 2.35% | 1.02% | 1.81% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% | 1.90% |
BNDW Vanguard Total World Bond ETF | 4.00% | 3.90% | 3.73% | 2.02% | 2.58% | 1.56% | 3.05% | 1.66% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
VMBS vs. BNDW - Drawdown Comparison
The maximum VMBS drawdown since its inception was -17.52%, roughly equal to the maximum BNDW drawdown of -17.22%. Use the drawdown chart below to compare losses from any high point for VMBS and BNDW. For additional features, visit the drawdowns tool.
Volatility
VMBS vs. BNDW - Volatility Comparison
Vanguard Mortgage-Backed Securities ETF (VMBS) has a higher volatility of 2.26% compared to Vanguard Total World Bond ETF (BNDW) at 1.18%. This indicates that VMBS's price experiences larger fluctuations and is considered to be riskier than BNDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.