VMBS vs. BRK-B

Last updated Jun 5, 2026

VMBS (Vanguard Mortgage-Backed Securities ETF) is Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index, while BRK-B (Berkshire Hathaway Inc.) is a stock. Over the past 10 years, VMBS returned 1.36%/yr vs 12.93%/yr for BRK-B. At a correlation of -0.08, they often move in opposite directions.

Performance

VMBS vs. BRK-B - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mortgage-Backed Securities ETF (VMBS) and Berkshire Hathaway Inc. (BRK-B). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VMBS achieves a 0.70% return, which is significantly higher than BRK-B's -4.78% return. Over the past 10 years, VMBS has underperformed BRK-B with an annualized return of 1.36%, while BRK-B has yielded a comparatively higher 12.93% annualized return.

VMBS

• 1D: 0.04%
• 1M: 0.18%
• YTD: 0.70%
• 6M: 1.11%
• 1Y: 6.25%
• 3Y*: 4.63%
• 5Y*: 0.49%
• 10Y*: 1.36%

BRK-B

• 1D: 0.69%
• 1M: 2.82%
• YTD: -4.78%
• 6M: -4.89%
• 1Y: -2.52%
• 3Y*: 13.36%
• 5Y*: 10.35%
• 10Y*: 12.93%

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

VMBS vs. BRK-B - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VMBS Vanguard Mortgage-Backed Securities ETF	0.70%	8.36%	1.70%	5.34%	-11.90%	-1.28%	3.76%	6.19%	0.91%	2.47%
BRK-B Berkshire Hathaway Inc.	-4.78%	10.89%	27.09%	15.46%	3.31%	28.95%	2.37%	10.93%	3.01%	21.62%

Correlation

The correlation between VMBS and BRK-B is 0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.07
Correlation (3Y) Calculated over the trailing 3-year period	0.11
Correlation (5Y) Calculated over the trailing 5-year period	0.08
Correlation (10Y) Calculated over the trailing 10-year period	-0.04
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009	-0.08

The correlation between VMBS and BRK-B shifts across timeframes, from -0.08 (all time) to 0.11 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

VMBS vs. BRK-B — Risk / Return Rank

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

VMBS

VMBS Risk / Return Rank: 45
VMBS Sharpe Ratio Rank: 42
VMBS Sortino Ratio Rank: 44
VMBS Omega Ratio Rank: 41
VMBS Calmar Ratio Rank: 48
VMBS Martin Ratio Rank: 48

BRK-B

BRK-B Risk / Return Rank: 31
BRK-B Sharpe Ratio Rank: 34
BRK-B Sortino Ratio Rank: 28
BRK-B Omega Ratio Rank: 27
BRK-B Calmar Ratio Rank: 33
BRK-B Martin Ratio Rank: 32

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.

VMBS vs. BRK-B - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and Berkshire Hathaway Inc. (BRK-B). 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.

	VMBS	BRK-B	Difference
Sharpe ratio: Return per unit of total volatility	1.45	-0.18	+1.63
Sortino ratio: Return per unit of downside risk	2.15	-0.15	+2.30
Omega ratio: Gain probability vs. loss probability	1.26	0.98	+0.28
Calmar ratio: Return relative to maximum drawdown	2.34	-0.27	+2.61
Martin ratio: Return relative to average drawdown	7.83	-0.57	+8.39
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VMBS vs. BRK-B - Sharpe Ratio Comparison

The current VMBS Sharpe Ratio is 1.45, which is higher than the BRK-B Sharpe Ratio of -0.18. The chart below compares the historical Sharpe Ratios of VMBS and BRK-B, 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

	VMBS	BRK-B	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.45	-0.18	+1.63
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.07	0.61	-0.54
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.25	0.67	-0.42
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.48	-0.02

Drawdowns

VMBS vs. BRK-B - Drawdown Comparison

The maximum VMBS drawdown since its inception was -17.47%, smaller than the maximum BRK-B drawdown of -53.86%. Use the drawdown chart below to compare losses from any high point for VMBS and BRK-B.

Drawdown Indicators

	VMBS	BRK-B	Difference
Max Drawdown Largest peak-to-trough decline	-17.47%	-53.86%	+36.39%
Max Drawdown (1Y) Largest decline over 1 year	-2.68%	-9.42%	+6.74%
Max Drawdown (3Y) Largest decline over 3 years	-7.65%	-14.95%	+7.30%
Max Drawdown (5Y) Largest decline over 5 years	-17.12%	-26.58%	+9.46%
Max Drawdown (10Y) Largest decline over 10 years	-17.47%	-29.57%	+12.10%
Current Drawdown Current decline from peak	-1.29%	-11.33%	+10.04%
Average Drawdown Average peak-to-trough decline	-2.49%	-11.07%	+8.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.80%	4.46%	-3.66%

Volatility

VMBS vs. BRK-B - Volatility Comparison

The current volatility for Vanguard Mortgage-Backed Securities ETF (VMBS) is 1.61%, while Berkshire Hathaway Inc. (BRK-B) has a volatility of 3.72%. This indicates that VMBS experiences smaller price fluctuations and is considered to be less risky than BRK-B based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMBS	BRK-B	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.61%	3.72%	-2.11%
Volatility (6M) Calculated over the trailing 6-month period	3.16%	10.70%	-7.54%
Volatility (1Y) Calculated over the trailing 1-year period	4.37%	14.32%	-9.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.77%	17.11%	-10.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.40%	19.43%	-14.03%

Dividends

VMBS vs. BRK-B - Dividend Comparison

VMBS's dividend yield for the trailing twelve months is around 4.18%, while BRK-B has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BRK-B Berkshire Hathaway Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VMBS Vanguard Mortgage-Backed Securities ETF	4.18%	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 VMBS and BRK-B in my portfolio?

VMBS and BRK-B have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VMBS or BRK-B?

BRK-B has higher volatility (3.72%) compared to VMBS (1.61%). In terms of maximum drawdown, VMBS dropped -17.47% vs BRK-B's -53.86%.

Which has better risk-adjusted returns?

VMBS currently has the higher Sharpe Ratio (1.45 vs -0.18), 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.