VMBS vs. FMSFX

Last updated Jun 24, 2026

VMBS (Vanguard Mortgage-Backed Securities ETF) and FMSFX (Fidelity Mortgage Securities Fund) are both funds - VMBS is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index, while FMSFX is a Total Bond Market fund managed by Fidelity. Over the past 10 years, VMBS returned 1.35%/yr vs 1.25%/yr for FMSFX. Their correlation of 0.81 suggests significant overlap in exposure. VMBS charges 0.04%/yr vs 0.45%/yr for FMSFX.

Performance

VMBS vs. FMSFX - Performance Comparison

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

Returns By Period

In the year-to-date period, VMBS achieves a 0.92% return, which is significantly higher than FMSFX's 0.66% return. Over the past 10 years, VMBS has outperformed FMSFX with an annualized return of 1.35%, while FMSFX has yielded a comparatively lower 1.25% annualized return.

VMBS

• 1D: 0.09%
• 1M: 0.63%
• YTD: 0.92%
• 6M: 1.02%
• 1Y: 6.00%
• 3Y*: 4.52%
• 5Y*: 0.57%
• 10Y*: 1.35%

FMSFX

• 1D: -0.20%
• 1M: 0.63%
• YTD: 0.66%
• 6M: 0.97%
• 1Y: 5.80%
• 3Y*: 4.25%
• 5Y*: 0.14%
• 10Y*: 1.25%

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

VMBS vs. FMSFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VMBS Vanguard Mortgage-Backed Securities ETF	0.92%	8.36%	1.70%	5.34%	-11.90%	-1.28%	3.76%	6.19%	0.91%	2.47%
FMSFX Fidelity Mortgage Securities Fund	0.66%	8.29%	1.00%	4.91%	-12.61%	-1.20%	4.41%	6.43%	0.79%	2.35%

Correlation

The correlation between VMBS and FMSFX is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009	0.81

The correlation between VMBS and FMSFX shifts across timeframes, from 0.81 (all time) to 0.95 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VMBS vs. FMSFX — 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: 41
VMBS Sortino Ratio Rank: 43
VMBS Omega Ratio Rank: 40
VMBS Calmar Ratio Rank: 47
VMBS Martin Ratio Rank: 45

FMSFX

FMSFX Risk / Return Rank: 34
FMSFX Sharpe Ratio Rank: 33
FMSFX Sortino Ratio Rank: 35
FMSFX Omega Ratio Rank: 32
FMSFX Calmar Ratio Rank: 36
FMSFX Martin Ratio Rank: 31

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. FMSFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and Fidelity Mortgage Securities Fund (FMSFX). 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	FMSFX	Difference
Sharpe ratio: Return per unit of total volatility	1.40	1.54	-0.14
Sortino ratio: Return per unit of downside risk	2.08	2.31	-0.23
Omega ratio: Gain probability vs. loss probability	1.25	1.28	-0.02
Calmar ratio: Return relative to maximum drawdown	2.24	2.15	+0.10
Martin ratio: Return relative to average drawdown	7.12	6.71	+0.41

VMBS vs. FMSFX - Sharpe Ratio Comparison

The current VMBS Sharpe Ratio is 1.40, which is comparable to the FMSFX Sharpe Ratio of 1.54. The chart below compares the historical Sharpe Ratios of VMBS and FMSFX, 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. FMSFX - Drawdown Comparison

The maximum VMBS drawdown since its inception was -17.47%, smaller than the maximum FMSFX drawdown of -18.81%. Use the drawdown chart below to compare losses from any high point for VMBS and FMSFX.

Drawdown Indicators

	VMBS	FMSFX	Difference
Max Drawdown Largest peak-to-trough decline	-17.47%	-18.81%	+1.34%
Max Drawdown (1Y) Largest decline over 1 year	-2.68%	-2.81%	+0.13%
Max Drawdown (3Y) Largest decline over 3 years	-7.65%	-8.04%	+0.39%
Max Drawdown (5Y) Largest decline over 5 years	-17.12%	-18.66%	+1.54%
Max Drawdown (10Y) Largest decline over 10 years	-17.47%	-18.81%	+1.34%
Current Drawdown Current decline from peak	-1.07%	-1.41%	+0.34%
Average Drawdown Average peak-to-trough decline	-2.49%	-1.92%	-0.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.84%	0.90%	-0.06%

Volatility

VMBS vs. FMSFX - Volatility Comparison

Vanguard Mortgage-Backed Securities ETF (VMBS) and Fidelity Mortgage Securities Fund (FMSFX) have volatilities of 1.19% and 1.23%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMBS	FMSFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.19%	1.23%	-0.04%
Volatility (6M) Calculated over the trailing 6-month period	3.27%	2.90%	+0.37%
Volatility (1Y) Calculated over the trailing 1-year period	4.30%	3.94%	+0.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.78%	6.80%	-0.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.41%	5.14%	+0.27%

VMBS vs. FMSFX - Expense Ratio Comparison

VMBS has a 0.04% expense ratio, which is lower than FMSFX's 0.45% expense ratio.

Dividends

VMBS vs. FMSFX - Dividend Comparison

VMBS's dividend yield for the trailing twelve months is around 4.17%, more than FMSFX's 3.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FMSFX Fidelity Mortgage Securities Fund	3.92%	3.93%	4.12%	3.50%	1.43%	0.62%	2.40%	2.62%	2.57%	2.60%	2.65%	2.05%
VMBS Vanguard Mortgage-Backed Securities ETF	4.17%	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 FMSFX in my portfolio?

With a correlation of 0.91, VMBS and FMSFX 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 FMSFX?

FMSFX has higher volatility (1.23%) compared to VMBS (1.19%). In terms of maximum drawdown, VMBS dropped -17.47% vs FMSFX's -18.81%.

Which has better risk-adjusted returns?

FMSFX currently has the higher Sharpe Ratio (1.54 vs 1.40), 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.