PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
VMBS vs. DGRO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VMBS vs. DGRO

Last updated Jun 9, 2026

VMBS (Vanguard Mortgage-Backed Securities ETF) and DGRO (iShares Core Dividend Growth ETF) are both exchange-traded funds - VMBS is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index, while DGRO is a Large Cap Growth Equities fund tracking the Morningstar US Dividend Growth Index. Both are passively managed. Over the past 10 years, VMBS returned 1.31%/yr vs 13.26%/yr for DGRO. At a 0.02 correlation, their price movements are largely independent. VMBS charges 0.04%/yr vs 0.08%/yr for DGRO.

Performance

VMBS vs. DGRO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mortgage-Backed Securities ETF (VMBS) and iShares Core Dividend Growth ETF (DGRO). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, VMBS achieves a 0.27% return, which is significantly lower than DGRO's 8.47% return. Over the past 10 years, VMBS has underperformed DGRO with an annualized return of 1.31%, while DGRO has yielded a comparatively higher 13.26% annualized return.

VMBS

1D
0.04%
1M
-0.83%
YTD
0.27%
6M
0.91%
1Y
6.83%
3Y*
4.37%
5Y*
0.40%
10Y*
1.31%

DGRO

1D
-0.29%
1M
2.67%
YTD
8.47%
6M
9.27%
1Y
21.90%
3Y*
16.63%
5Y*
10.64%
10Y*
13.26%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VMBS vs. DGRO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VMBS
Vanguard Mortgage-Backed Securities ETF		0.27%8.36%1.70%5.34%-11.90%-1.28%3.76%6.19%0.91%2.47%
DGRO
iShares Core Dividend Growth ETF		8.47%15.69%16.62%10.47%-7.91%26.64%9.50%29.87%-2.38%23.00%

Correlation

The correlation between VMBS and DGRO is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.31

Correlation (3Y)
Calculated over the trailing 3-year period

0.25

Correlation (5Y)
Calculated over the trailing 5-year period

0.20

Correlation (10Y)
Calculated over the trailing 10-year period

0.06

Correlation (All Time)
Calculated using the full available price history since Jun 13, 2014

0.02

Over the past year, VMBS and DGRO have become more correlated (0.31) than their long-term average of 0.02, meaning their price movements have been converging.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Mortgage-Backed Securities ETF

iShares Core Dividend Growth ETF

Often compared with VMBS:
VMBS vs. SPMBVMBS vs. BNDVMBS vs. VGITVMBS vs. JMBSVMBS vs. GNMAVMBS vs. VOOVMBS vs. FSEC
Often compared with DGRO:
DGRO vs. SCHDDGRO vs. VIGDGRO vs. VYMDGRO vs. VOODGRO vs. DGRWDGRO vs. DIVODGRO vs. HDV

Return for Risk

VMBS vs. DGRO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VMBS
VMBS Risk / Return Rank: 5454
Overall Rank
VMBS Sharpe Ratio Rank: 5252
Sharpe Ratio Rank
VMBS Sortino Ratio Rank: 5555
Sortino Ratio Rank
VMBS Omega Ratio Rank: 5151
Omega Ratio Rank
VMBS Calmar Ratio Rank: 5757
Calmar Ratio Rank
VMBS Martin Ratio Rank: 5353
Martin Ratio Rank
DGRO
DGRO Risk / Return Rank: 7878
Overall Rank
DGRO Sharpe Ratio Rank: 8080
Sharpe Ratio Rank
DGRO Sortino Ratio Rank: 8484
Sortino Ratio Rank
DGRO Omega Ratio Rank: 7878
Omega Ratio Rank
DGRO Calmar Ratio Rank: 7474
Calmar Ratio Rank
DGRO Martin Ratio Rank: 7676
Martin Ratio Rank
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. DGRO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and iShares Core Dividend Growth ETF (DGRO). 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.

VMBSDGRODifference
Sharpe ratioReturn per unit of total volatility
1.60
2.32

-0.72

Sortino ratioReturn per unit of downside risk
2.38
3.37

-1.00

Omega ratioGain probability vs. loss probability

1.29

1.42

-0.13

Calmar ratioReturn relative to maximum drawdown

2.55

3.40

-0.85

Martin ratioReturn relative to average drawdown

8.40

13.12

-4.72

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. DGRO - Sharpe Ratio Comparison

The current VMBS Sharpe Ratio is 1.60, which is lower than the DGRO Sharpe Ratio of 2.32. The chart below compares the historical Sharpe Ratios of VMBS and DGRO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Sharpe Ratios by Period

VMBSDGRODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.60

2.32

-0.72

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.06

0.77

-0.71

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.24

0.80

-0.56

Sharpe Ratio (All Time)

Calculated using the full available price history

0.45

0.76

-0.31

Drawdowns

VMBS vs. DGRO - Drawdown Comparison

The maximum VMBS drawdown since its inception was -17.47%, smaller than the maximum DGRO drawdown of -35.10%. Use the drawdown chart below to compare losses from any high point for VMBS and DGRO.

Loading charts...

Drawdown Indicators

VMBSDGRODifference

Max Drawdown

Largest peak-to-trough decline

-17.47%

-35.10%

+17.63%

Max Drawdown (1Y)

Largest decline over 1 year

-2.68%

-6.47%

+3.79%

Max Drawdown (3Y)

Largest decline over 3 years

-7.65%

-14.03%

+6.38%

Max Drawdown (5Y)

Largest decline over 5 years

-17.12%

-19.31%

+2.19%

Max Drawdown (10Y)

Largest decline over 10 years

-17.47%

-35.10%

+17.63%

Current Drawdown

Current decline from peak

-1.71%

-1.07%

-0.64%

Average Drawdown

Average peak-to-trough decline

-2.49%

-3.44%

+0.95%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.81%

1.67%

-0.86%

Volatility

VMBS vs. DGRO - Volatility Comparison

The current volatility for Vanguard Mortgage-Backed Securities ETF (VMBS) is 1.56%, while iShares Core Dividend Growth ETF (DGRO) has a volatility of 2.32%. This indicates that VMBS experiences smaller price fluctuations and is considered to be less risky than DGRO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

VMBSDGRODifference

Volatility (1M)

Calculated over the trailing 1-month period

1.56%

2.32%

-0.76%

Volatility (6M)

Calculated over the trailing 6-month period

3.19%

6.95%

-3.76%

Volatility (1Y)

Calculated over the trailing 1-year period

4.29%

9.52%

-5.23%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.77%

13.82%

-7.05%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.40%

16.63%

-11.23%

VMBS vs. DGRO - Expense Ratio Comparison

VMBS has a 0.04% expense ratio, which is lower than DGRO's 0.08% 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

VMBS vs. DGRO - Dividend Comparison

VMBS's dividend yield for the trailing twelve months is around 4.20%, more than DGRO's 1.96% yield.

PositionTTM20252024202320222021202020192018201720162015
DGRO
iShares Core Dividend Growth ETF		1.96%2.09%2.26%2.45%2.34%1.93%2.30%2.21%2.44%2.03%2.27%2.52%
VMBS
Vanguard Mortgage-Backed Securities ETF		4.20%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

VMBS and DGRO have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

DGRO has higher volatility (2.32%) compared to VMBS (1.56%). In terms of maximum drawdown, VMBS dropped -17.47% vs DGRO's -35.10%.

On 10-year performance, DGRO leads with 13.26% vs 1.31% for VMBS. On fees, VMBS is cheaper at 0.04% per year. On volatility, VMBS has been the lower-risk option at 1.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, DGRO has performed better with a 13.26% return vs 1.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VMBS is cheaper with a 0.04% expense ratio, compared with 0.08% for DGRO.

VMBS has the higher dividend yield at 4.20%, compared with 1.96% for DGRO.

VMBS is categorized as Mortgage Backed Securities, while DGRO is Large Cap Growth Equities. VMBS tracks Barclays Capital U.S. MBS Index, while DGRO tracks Morningstar US Dividend Growth Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VMBS and 0.08% for DGRO.

DGRO currently has the higher Sharpe Ratio (2.32 vs 1.60), 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.

Portfolio Optimizer

Find the right allocation for VMBS and DGRO

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer