VMBS vs. HYG
Compare and contrast key facts about Vanguard Mortgage-Backed Securities ETF (VMBS) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG).
VMBS and HYG 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. HYG is a passively managed fund by iShares that tracks the performance of the iBoxx $ Liquid High Yield Index. It was launched on Apr 11, 2007. Both VMBS and HYG 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 HYG.
Correlation
The correlation between VMBS and HYG is 0.15, 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. HYG - Performance Comparison
Key characteristics
VMBS:
1.32
HYG:
1.59
VMBS:
1.96
HYG:
2.35
VMBS:
1.24
HYG:
1.34
VMBS:
0.65
HYG:
1.97
VMBS:
4.03
HYG:
11.00
VMBS:
1.94%
HYG:
0.82%
VMBS:
5.93%
HYG:
5.64%
VMBS:
-17.52%
HYG:
-34.24%
VMBS:
-5.23%
HYG:
-2.01%
Returns By Period
In the year-to-date period, VMBS achieves a 1.95% return, which is significantly higher than HYG's 0.28% return. Over the past 10 years, VMBS has underperformed HYG with an annualized return of 0.92%, while HYG has yielded a comparatively higher 3.74% annualized return.
VMBS
1.95%
-0.60%
0.55%
7.50%
-0.82%
0.92%
HYG
0.28%
-1.64%
0.30%
8.76%
4.52%
3.74%
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VMBS vs. HYG - Expense Ratio Comparison
VMBS has a 0.04% expense ratio, which is lower than HYG's 0.49% expense ratio.
Risk-Adjusted Performance
VMBS vs. HYG — Risk-Adjusted Performance Rank
VMBS
HYG
VMBS vs. HYG - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). 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. HYG - Dividend Comparison
VMBS's dividend yield for the trailing twelve months is around 4.01%, less than HYG's 5.95% yield.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 4.01% | 3.94% | 3.31% | 2.35% | 1.02% | 1.81% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% | 1.90% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.95% | 6.01% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% | 5.69% |
Drawdowns
VMBS vs. HYG - Drawdown Comparison
The maximum VMBS drawdown since its inception was -17.52%, smaller than the maximum HYG drawdown of -34.24%. Use the drawdown chart below to compare losses from any high point for VMBS and HYG. For additional features, visit the drawdowns tool.
Volatility
VMBS vs. HYG - Volatility Comparison
The current volatility for Vanguard Mortgage-Backed Securities ETF (VMBS) is 2.58%, while iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has a volatility of 4.02%. This indicates that VMBS experiences smaller price fluctuations and is considered to be less risky than HYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.