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.
Performance
VMBS vs. ESGU - Performance Comparison
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VMBS vs. ESGU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 0.41% | 8.36% | 1.70% | 5.34% | -11.90% | -1.28% | 3.76% | 6.19% | 0.91% | 2.47% |
ESGU iShares ESG MSCI USA ETF | -4.83% | 16.90% | 24.31% | 25.79% | -20.27% | 26.89% | 22.54% | 31.72% | -4.32% | 21.07% |
Returns By Period
In the year-to-date period, VMBS achieves a 0.41% return, which is significantly higher than ESGU's -4.83% return.
VMBS
- 1D
- 0.21%
- 1M
- -1.57%
- YTD
- 0.41%
- 6M
- 2.06%
- 1Y
- 5.79%
- 3Y*
- 4.29%
- 5Y*
- 0.49%
- 10Y*
- 1.41%
ESGU
- 1D
- 2.93%
- 1M
- -4.97%
- YTD
- -4.83%
- 6M
- -2.32%
- 1Y
- 17.24%
- 3Y*
- 17.48%
- 5Y*
- 10.42%
- 10Y*
- —
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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%.
Return for Risk
VMBS vs. ESGU — Risk / Return Rank
VMBS
ESGU
VMBS vs. ESGU - Risk-Adjusted Trends 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.
| VMBS | ESGU | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.16 | 0.92 | +0.24 |
Sortino ratioReturn per unit of downside risk | 1.67 | 1.42 | +0.25 |
Omega ratioGain probability vs. loss probability | 1.21 | 1.21 | 0.00 |
Calmar ratioReturn relative to maximum drawdown | 1.95 | 1.45 | +0.50 |
Martin ratioReturn relative to average drawdown | 6.10 | 6.77 | -0.67 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VMBS | ESGU | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.16 | 0.92 | +0.24 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.07 | 0.60 | -0.53 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.26 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.46 | 0.74 | -0.28 |
Correlation
The correlation between VMBS and ESGU is 0.08, 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.
Dividends
VMBS vs. ESGU - Dividend Comparison
VMBS's dividend yield for the trailing twelve months is around 4.23%, more than ESGU's 1.07% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 4.23% | 4.20% | 3.94% | 3.31% | 2.35% | 1.02% | 2.01% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% |
ESGU iShares ESG MSCI USA ETF | 1.07% | 0.99% | 1.18% | 1.43% | 1.58% | 1.06% | 1.27% | 1.32% | 1.73% | 1.82% | 0.00% | 0.00% |
Drawdowns
VMBS vs. ESGU - Drawdown Comparison
The maximum VMBS drawdown since its inception was -17.47%, 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.
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Drawdown Indicators
| VMBS | ESGU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.47% | -33.87% | +16.40% |
Max Drawdown (1Y)Largest decline over 1 year | -3.00% | -12.35% | +9.35% |
Max Drawdown (5Y)Largest decline over 5 years | -17.12% | -26.15% | +9.03% |
Max Drawdown (10Y)Largest decline over 10 years | -17.47% | — | — |
Current DrawdownCurrent decline from peak | -1.57% | -6.59% | +5.02% |
Average DrawdownAverage peak-to-trough decline | -2.51% | -4.96% | +2.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.96% | 2.65% | -1.69% |
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 5.42%. 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.
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Volatility by Period
| VMBS | ESGU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.90% | 5.42% | -3.52% |
Volatility (6M)Calculated over the trailing 6-month period | 2.89% | 9.77% | -6.88% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.00% | 18.75% | -13.75% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.71% | 17.33% | -10.62% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.37% | 18.70% | -13.33% |