VMBS vs. DEED

Last updated Jul 14, 2026

VMBS (Vanguard Mortgage-Backed Securities ETF) and DEED (First Trust TCW Securitized Plus ETF) are both Mortgage Backed Securities funds. VMBS is passively managed, while DEED is actively managed. Over the past 5 years, VMBS returned 0.40%/yr vs 0.28%/yr for DEED. A 0.77 correlation means they provide meaningful diversification when combined. VMBS charges 0.04%/yr vs 0.65%/yr for DEED.

Performance

VMBS vs. DEED - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mortgage-Backed Securities ETF (VMBS) and First Trust TCW Securitized Plus ETF (DEED). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VMBS achieves a 0.28% return, which is significantly lower than DEED's 0.86% return.

VMBS

• 1D: -0.43%
• 1M: -0.59%
• 6M: -0.13%
• YTD: 0.28%
• 1Y: 5.07%
• 3Y*: 4.36%
• 5Y*: 0.40%
• 10Y*: 1.28%

DEED

• 1D: -0.35%
• 1M: 0.25%
• 6M: 0.49%
• YTD: 0.86%
• 1Y: 5.73%
• 3Y*: 5.25%
• 5Y*: 0.28%
• 10Y*: —

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

VMBS vs. DEED - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
VMBS Vanguard Mortgage-Backed Securities ETF	0.28%	8.36%	1.70%	5.34%	-11.90%	-1.28%	0.55%
DEED First Trust TCW Securitized Plus ETF	0.86%	8.91%	3.19%	6.43%	-16.03%	1.62%	4.61%

Correlation

The correlation between VMBS and DEED is 0.80, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (All Time) Calculated using the full available price history since Apr 30, 2020	0.77

The correlation between VMBS and DEED has been stable across timeframes, ranging from 0.77 to 0.86 - a consistent structural relationship.

Return for Risk

VMBS vs. DEED — Risk / Return Rank

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

VMBS

VMBS Risk / Return Rank: 43
VMBS Sharpe Ratio Rank: 42
VMBS Sortino Ratio Rank: 42
VMBS Omega Ratio Rank: 40
VMBS Calmar Ratio Rank: 47
VMBS Martin Ratio Rank: 45

DEED

DEED Risk / Return Rank: 49
DEED Sharpe Ratio Rank: 54
DEED Sortino Ratio Rank: 56
DEED Omega Ratio Rank: 52
DEED Calmar Ratio Rank: 44
DEED Martin Ratio Rank: 38

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. DEED - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and First Trust TCW Securitized Plus ETF (DEED). 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.

	VMBS	DEED	Difference
Sharpe ratio: Return per unit of total volatility	1.20	1.47	-0.28
Sortino ratio: Return per unit of downside risk	1.76	2.15	-0.39
Omega ratio: Gain probability vs. loss probability	1.22	1.26	-0.04
Calmar ratio: Return relative to maximum drawdown	1.89	1.81	+0.09
Martin ratio: Return relative to average drawdown	5.90	4.76	+1.14

VMBS vs. DEED - Sharpe Ratio Comparison

The current VMBS Sharpe Ratio is 1.20, which is comparable to the DEED Sharpe Ratio of 1.47. The chart below compares the historical Sharpe Ratios of VMBS and DEED, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VMBS vs. DEED - Drawdown Comparison

The maximum VMBS drawdown since its inception was -17.47%, smaller than the maximum DEED drawdown of -19.96%. Use the drawdown chart below to compare losses from any high point for VMBS and DEED.

Drawdown Indicators

	VMBS	DEED	Difference
Max Drawdown Largest peak-to-trough decline	-17.47%	-19.96%	+2.49%
Max Drawdown (1Y) Largest decline over 1 year	-2.68%	-3.18%	+0.50%
Max Drawdown (3Y) Largest decline over 3 years	-7.47%	-7.45%	-0.02%
Max Drawdown (5Y) Largest decline over 5 years	-17.12%	-19.96%	+2.84%
Max Drawdown (10Y) Largest decline over 10 years	-17.47%	—	—
Current Drawdown Current decline from peak	-1.70%	-1.52%	-0.18%
Average Drawdown Average peak-to-trough decline	-2.49%	-6.53%	+4.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.86%	1.21%	-0.35%

Volatility

VMBS vs. DEED - Volatility Comparison

The current volatility for Vanguard Mortgage-Backed Securities ETF (VMBS) is 1.32%, while First Trust TCW Securitized Plus ETF (DEED) has a volatility of 1.39%. This indicates that VMBS experiences smaller price fluctuations and is considered to be less risky than DEED based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMBS	DEED	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.32%	1.39%	-0.07%
Volatility (6M) Calculated over the trailing 6-month period	3.37%	3.03%	+0.34%
Volatility (1Y) Calculated over the trailing 1-year period	4.26%	3.92%	+0.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.79%	6.57%	+0.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.41%	5.95%	-0.54%

VMBS vs. DEED - Expense Ratio Comparison

VMBS has a 0.04% expense ratio, which is lower than DEED's 0.65% expense ratio.

Dividends

VMBS vs. DEED - Dividend Comparison

VMBS's dividend yield for the trailing twelve months is around 4.22%, less than DEED's 4.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEED First Trust TCW Securitized Plus ETF	4.34%	4.10%	5.73%	5.59%	2.43%	1.93%	1.60%	0.00%	0.00%	0.00%	0.00%	0.00%
VMBS Vanguard Mortgage-Backed Securities ETF	4.22%	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 DEED in my portfolio?

VMBS and DEED have a correlation of 0.80, 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 DEED?

DEED has higher volatility (1.39%) compared to VMBS (1.32%). In terms of maximum drawdown, VMBS dropped -17.47% vs DEED's -19.96%.

Which ETF is better, VMBS or DEED?

On 5-year performance, VMBS leads with 0.40% vs 0.28% for DEED. On fees, VMBS is cheaper at 0.04% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VMBS or DEED?

Over the 5-year period, VMBS has performed better with a 0.40% return vs 0.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VMBS or DEED?

VMBS is cheaper with a 0.04% expense ratio, compared with 0.65% for DEED.

Which ETF pays a higher dividend yield, VMBS or DEED?

DEED has the higher dividend yield at 4.34%, compared with 4.22% for VMBS.

What is the main difference between VMBS and DEED?

They also come from different issuers: Vanguard and First Trust. Their fees differ too: 0.04% for VMBS and 0.65% for DEED.

Which has better risk-adjusted returns?

DEED currently has the higher Sharpe Ratio (1.47 vs 1.20), 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.