VMBS vs. DODIX

Last updated Jun 4, 2026

VMBS (Vanguard Mortgage-Backed Securities ETF) and DODIX (Dodge & Cox Income Fund) are both funds - VMBS is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index, while DODIX is a Total Bond Market fund managed by Dodge & Cox. Over the past 10 years, VMBS returned 1.35%/yr vs 2.93%/yr for DODIX. A 0.77 correlation means they provide meaningful diversification when combined. VMBS charges 0.04%/yr vs 0.41%/yr for DODIX.

Performance

VMBS vs. DODIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mortgage-Backed Securities ETF (VMBS) and Dodge & Cox Income Fund (DODIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VMBS achieves a 0.66% return, which is significantly higher than DODIX's 0.51% return. Over the past 10 years, VMBS has underperformed DODIX with an annualized return of 1.35%, while DODIX has yielded a comparatively higher 2.93% annualized return.

VMBS

• 1D: -0.15%
• 1M: 0.33%
• YTD: 0.66%
• 6M: 0.85%
• 1Y: 6.93%
• 3Y*: 4.60%
• 5Y*: 0.48%
• 10Y*: 1.35%

DODIX

• 1D: 0.08%
• 1M: 0.55%
• YTD: 0.51%
• 6M: 0.47%
• 1Y: 6.43%
• 3Y*: 5.26%
• 5Y*: 1.31%
• 10Y*: 2.93%

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

VMBS vs. DODIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VMBS Vanguard Mortgage-Backed Securities ETF	0.66%	8.36%	1.70%	5.34%	-11.90%	-1.28%	3.76%	6.19%	0.91%	2.47%
DODIX Dodge & Cox Income Fund	0.51%	8.32%	2.25%	7.69%	-11.42%	-0.92%	9.46%	9.73%	-0.31%	4.36%

Correlation

The correlation between VMBS and DODIX is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009	0.77

The correlation between VMBS and DODIX shifts across timeframes, from 0.77 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

VMBS vs. DODIX — Risk / Return Rank

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

VMBS

VMBS Risk / Return Rank: 48
VMBS Sharpe Ratio Rank: 45
VMBS Sortino Ratio Rank: 48
VMBS Omega Ratio Rank: 45
VMBS Calmar Ratio Rank: 52
VMBS Martin Ratio Rank: 51

DODIX

DODIX Risk / Return Rank: 29
DODIX Sharpe Ratio Rank: 30
DODIX Sortino Ratio Rank: 32
DODIX Omega Ratio Rank: 30
DODIX Calmar Ratio Rank: 30
DODIX Martin Ratio Rank: 25

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. DODIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and Dodge & Cox Income Fund (DODIX). 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	DODIX	Difference
Sharpe ratio: Return per unit of total volatility	1.59	1.57	+0.02
Sortino ratio: Return per unit of downside risk	2.38	2.33	+0.04
Omega ratio: Gain probability vs. loss probability	1.29	1.29	0.00
Calmar ratio: Return relative to maximum drawdown	2.59	2.04	+0.56
Martin ratio: Return relative to average drawdown	8.68	6.23	+2.46
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. DODIX - Sharpe Ratio Comparison

The current VMBS Sharpe Ratio is 1.59, which is comparable to the DODIX Sharpe Ratio of 1.57. The chart below compares the historical Sharpe Ratios of VMBS and DODIX, 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	DODIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.59	1.57	+0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.07	0.24	-0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.25	0.66	-0.41
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	1.47	-1.01

Drawdowns

VMBS vs. DODIX - Drawdown Comparison

The maximum VMBS drawdown since its inception was -17.47%, roughly equal to the maximum DODIX drawdown of -16.89%. Use the drawdown chart below to compare losses from any high point for VMBS and DODIX.

Drawdown Indicators

	VMBS	DODIX	Difference
Max Drawdown Largest peak-to-trough decline	-17.47%	-16.89%	-0.58%
Max Drawdown (1Y) Largest decline over 1 year	-2.68%	-3.17%	+0.49%
Max Drawdown (3Y) Largest decline over 3 years	-7.65%	-5.68%	-1.97%
Max Drawdown (5Y) Largest decline over 5 years	-17.12%	-16.89%	-0.23%
Max Drawdown (10Y) Largest decline over 10 years	-17.47%	-16.89%	-0.58%
Current Drawdown Current decline from peak	-1.33%	-1.63%	+0.30%
Average Drawdown Average peak-to-trough decline	-2.49%	-1.50%	-0.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.80%	1.04%	-0.24%

Volatility

VMBS vs. DODIX - Volatility Comparison

Vanguard Mortgage-Backed Securities ETF (VMBS) has a higher volatility of 1.62% compared to Dodge & Cox Income Fund (DODIX) at 1.43%. This indicates that VMBS's price experiences larger fluctuations and is considered to be riskier than DODIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMBS	DODIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.62%	1.43%	+0.19%
Volatility (6M) Calculated over the trailing 6-month period	3.16%	3.00%	+0.16%
Volatility (1Y) Calculated over the trailing 1-year period	4.37%	4.11%	+0.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.77%	5.56%	+1.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.40%	4.45%	+0.95%

VMBS vs. DODIX - Expense Ratio Comparison

VMBS has a 0.04% expense ratio, which is lower than DODIX's 0.41% expense ratio.

Dividends

VMBS vs. DODIX - Dividend Comparison

VMBS's dividend yield for the trailing twelve months is around 4.19%, less than DODIX's 4.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DODIX Dodge & Cox Income Fund	4.26%	4.23%	4.24%	3.86%	2.19%	3.23%	4.66%	3.63%	3.43%	3.03%	3.25%	3.09%
VMBS Vanguard Mortgage-Backed Securities ETF	4.19%	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 DODIX in my portfolio?

With a correlation of 0.94, VMBS and DODIX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VMBS or DODIX?

VMBS has higher volatility (1.62%) compared to DODIX (1.43%). In terms of maximum drawdown, VMBS dropped -17.47% vs DODIX's -16.89%.

Which has better risk-adjusted returns?

VMBS currently has the higher Sharpe Ratio (1.59 vs 1.57), 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.