VMBS vs. IYT
VMBS (Vanguard Mortgage-Backed Securities ETF) and IYT (iShares Transportation Average ETF) are both exchange-traded funds - VMBS is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index, while IYT is a Transportation Equities fund tracking the Dow Jones Transportation Average Index. Both are passively managed. Over the past 10 years, VMBS returned 1.35%/yr vs 11.13%/yr for IYT. At a correlation of -0.05, they often move in opposite directions. VMBS charges 0.04%/yr vs 0.42%/yr for IYT.
Performance
VMBS vs. IYT - Performance Comparison
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Returns By Period
In the year-to-date period, VMBS achieves a 0.92% return, which is significantly lower than IYT's 13.27% return. Over the past 10 years, VMBS has underperformed IYT with an annualized return of 1.35%, while IYT has yielded a comparatively higher 11.13% 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%
IYT
- 1D
- -0.78%
- 1M
- 3.24%
- YTD
- 13.27%
- 6M
- 12.06%
- 1Y
- 27.89%
- 3Y*
- 13.54%
- 5Y*
- 6.34%
- 10Y*
- 11.13%
VMBS vs. IYT - 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% |
IYT iShares Transportation Average ETF | 13.27% | 11.48% | 4.10% | 24.62% | -21.74% | 26.41% | 14.20% | 20.11% | -12.87% | 18.89% |
Correlation
The correlation between VMBS and IYT is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.29 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.15 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.02 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | -0.05 |
The correlation between VMBS and IYT shifts across timeframes, from -0.05 (all time) to 0.29 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VMBS vs. IYT — Risk / Return Rank
VMBS
IYT
VMBS vs. IYT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and iShares Transportation Average ETF (IYT). 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 | IYT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.04 | ||
| Sortino ratioReturn per unit of downside risk | +0.14 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.24 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.24 | 2.32 | -0.08 |
| Martin ratioReturn relative to average drawdown | 7.12 | 7.51 | -0.39 |
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Drawdowns
VMBS vs. IYT - Drawdown Comparison
The maximum VMBS drawdown since its inception was -17.47%, smaller than the maximum IYT drawdown of -60.39%. Use the drawdown chart below to compare losses from any high point for VMBS and IYT.
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Drawdown Indicators
| VMBS | IYT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.47% | -60.39% | +42.92% |
Max Drawdown (1Y)Largest decline over 1 year | -2.68% | -12.09% | +9.41% |
Max Drawdown (3Y)Largest decline over 3 years | -7.65% | -26.35% | +18.70% |
Max Drawdown (5Y)Largest decline over 5 years | -17.12% | -29.15% | +12.03% |
Max Drawdown (10Y)Largest decline over 10 years | -17.47% | -41.28% | +23.81% |
Current DrawdownCurrent decline from peak | -1.07% | -2.97% | +1.90% |
Average DrawdownAverage peak-to-trough decline | -2.49% | -9.30% | +6.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.84% | 3.72% | -2.88% |
Volatility
VMBS vs. IYT - Volatility Comparison
The current volatility for Vanguard Mortgage-Backed Securities ETF (VMBS) is 1.19%, while iShares Transportation Average ETF (IYT) has a volatility of 7.09%. This indicates that VMBS experiences smaller price fluctuations and is considered to be less risky than IYT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VMBS | IYT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.19% | 7.09% | -5.90% |
Volatility (6M)Calculated over the trailing 6-month period | 3.27% | 16.27% | -13.00% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.30% | 20.70% | -16.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.78% | 22.40% | -15.62% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.41% | 23.16% | -17.75% |
VMBS vs. IYT - Expense Ratio Comparison
VMBS has a 0.04% expense ratio, which is lower than IYT's 0.42% expense ratio.
Dividends
VMBS vs. IYT - Dividend Comparison
VMBS's dividend yield for the trailing twelve months is around 4.17%, more than IYT's 0.93% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYT iShares Transportation Average ETF | 0.93% | 1.00% | 1.08% | 1.26% | 1.40% | 0.77% | 0.93% | 1.29% | 1.35% | 0.92% | 0.96% | 1.28% |
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
VMBS and IYT have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYT has higher volatility (7.09%) compared to VMBS (1.19%). In terms of maximum drawdown, VMBS dropped -17.47% vs IYT's -60.39%.
On 10-year performance, IYT leads with 11.13% vs 1.35% for VMBS. On fees, VMBS is cheaper at 0.04% per year. On volatility, VMBS has been the lower-risk option at 1.19%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYT has performed better with a 11.13% return vs 1.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VMBS is cheaper with a 0.04% expense ratio, compared with 0.42% for IYT.
VMBS has the higher dividend yield at 4.17%, compared with 0.93% for IYT.
VMBS is categorized as Mortgage Backed Securities, while IYT is Transportation Equities. VMBS tracks Barclays Capital U.S. MBS Index, while IYT tracks Dow Jones Transportation Average Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VMBS and 0.42% for IYT.
VMBS currently has the higher Sharpe Ratio (1.40 vs 1.36), 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.
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