VMBS vs. ESGU
Compare and contrast key facts about Vanguard Mortgage-Backed Securities ETF (VMBS) and iShares ESG MSCI USA ETF (ESGU).
VMBS and ESGU 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. ESGU is a passively managed fund by iShares that tracks the performance of the MSCI USA ESG Focus Index. It was launched on Dec 1, 2016. Both VMBS and ESGU 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 ESGU.
Correlation
The correlation between VMBS and ESGU 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. ESGU - Performance Comparison
Key characteristics
VMBS:
0.26
ESGU:
2.11
VMBS:
0.41
ESGU:
2.82
VMBS:
1.05
ESGU:
1.39
VMBS:
0.14
ESGU:
3.15
VMBS:
0.78
ESGU:
13.76
VMBS:
2.07%
ESGU:
1.96%
VMBS:
6.18%
ESGU:
12.77%
VMBS:
-17.46%
ESGU:
-33.87%
VMBS:
-7.32%
ESGU:
-2.17%
Returns By Period
In the year-to-date period, VMBS achieves a 1.32% return, which is significantly lower than ESGU's 26.16% return.
VMBS
1.32%
-0.66%
1.10%
1.69%
-0.70%
0.86%
ESGU
26.16%
-0.07%
10.64%
26.65%
14.57%
N/A
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VMBS vs. ESGU - Expense Ratio Comparison
VMBS has a 0.04% expense ratio, which is lower than ESGU's 0.15% 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. ESGU - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and iShares ESG MSCI USA ETF (ESGU). 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. ESGU - Dividend Comparison
VMBS's dividend yield for the trailing twelve months is around 3.61%, more than ESGU's 1.16% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 3.61% | 3.31% | 2.35% | 1.03% | 2.01% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% | 1.90% | 0.99% |
ESGU iShares ESG MSCI USA ETF | 1.16% | 1.43% | 1.58% | 1.06% | 1.27% | 1.32% | 1.81% | 1.82% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
VMBS vs. ESGU - Drawdown Comparison
The maximum VMBS drawdown since its inception was -17.46%, smaller than the maximum ESGU drawdown of -33.87%. Use the drawdown chart below to compare losses from any high point for VMBS and ESGU. For additional features, visit the drawdowns tool.
Volatility
VMBS vs. ESGU - Volatility Comparison
The current volatility for Vanguard Mortgage-Backed Securities ETF (VMBS) is 1.90%, while iShares ESG MSCI USA ETF (ESGU) has a volatility of 3.99%. This indicates that VMBS experiences smaller price fluctuations and is considered to be less risky than ESGU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.