VMBS vs. MBBB
VMBS (Vanguard Mortgage-Backed Securities ETF) and MBBB (VanEck Moody's Analytics BBB Corporate Bond ETF) are both exchange-traded funds - VMBS is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index, while MBBB is a Corporate Bonds fund tracking the MVIS Moody's Analytics US BBB Corporate Bond Index. Both are passively managed. Over the past 5 years, VMBS returned 0.48%/yr vs 1.11%/yr for MBBB. Their correlation of 0.84 suggests significant overlap in exposure. VMBS charges 0.04%/yr vs 0.25%/yr for MBBB.
Performance
VMBS vs. MBBB - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VMBS achieves a 0.66% return, which is significantly higher than MBBB's 0.43% return.
VMBS
- 1D
- -0.15%
- 1M
- 0.33%
- YTD
- 0.66%
- 6M
- 0.85%
- 1Y
- 6.93%
- 3Y*
- 4.60%
- 5Y*
- 0.48%
- 10Y*
- 1.35%
MBBB
- 1D
- -0.23%
- 1M
- 0.71%
- YTD
- 0.43%
- 6M
- 0.32%
- 1Y
- 5.40%
- 3Y*
- 6.05%
- 5Y*
- 1.11%
- 10Y*
- —
VMBS vs. MBBB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 0.66% | 8.36% | 1.70% | 5.34% | -11.90% | -1.28% | 0.25% |
MBBB VanEck Moody's Analytics BBB Corporate Bond ETF | 0.43% | 7.64% | 3.68% | 9.75% | -15.04% | 0.30% | 1.51% |
Correlation
The correlation between VMBS and MBBB is 0.85, 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 | 0.85 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since Dec 3, 2020 | 0.84 |
The correlation between VMBS and MBBB has been stable across timeframes, ranging from 0.84 to 0.89 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VMBS vs. MBBB — Risk / Return Rank
VMBS
MBBB
VMBS vs. MBBB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and VanEck Moody's Analytics BBB Corporate Bond ETF (MBBB). 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 | MBBB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.29 | ||
| Sortino ratioReturn per unit of downside risk | +0.45 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.23 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 2.59 | 1.82 | +0.78 |
| Martin ratioReturn relative to average drawdown | 8.68 | 5.86 | +2.82 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| VMBS | MBBB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.59 | 1.31 | +0.29 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.07 | 0.18 | -0.10 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.25 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.46 | 0.18 | +0.27 |
Drawdowns
VMBS vs. MBBB - Drawdown Comparison
The maximum VMBS drawdown since its inception was -17.47%, smaller than the maximum MBBB drawdown of -21.73%. Use the drawdown chart below to compare losses from any high point for VMBS and MBBB.
Loading charts...
Drawdown Indicators
| VMBS | MBBB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.47% | -21.73% | +4.26% |
Max Drawdown (1Y)Largest decline over 1 year | -2.68% | -2.98% | +0.30% |
Max Drawdown (3Y)Largest decline over 3 years | -7.65% | -5.64% | -2.01% |
Max Drawdown (5Y)Largest decline over 5 years | -17.12% | -21.73% | +4.61% |
Max Drawdown (10Y)Largest decline over 10 years | -17.47% | — | — |
Current DrawdownCurrent decline from peak | -1.33% | -0.97% | -0.36% |
Average DrawdownAverage peak-to-trough decline | -2.49% | -6.83% | +4.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.80% | 0.92% | -0.12% |
Volatility
VMBS vs. MBBB - Volatility Comparison
Vanguard Mortgage-Backed Securities ETF (VMBS) has a higher volatility of 1.62% compared to VanEck Moody's Analytics BBB Corporate Bond ETF (MBBB) at 1.52%. This indicates that VMBS's price experiences larger fluctuations and is considered to be riskier than MBBB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VMBS | MBBB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.62% | 1.52% | +0.10% |
Volatility (6M)Calculated over the trailing 6-month period | 3.16% | 3.15% | +0.01% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.37% | 4.14% | +0.23% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.77% | 6.36% | +0.41% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.40% | 6.23% | -0.83% |
VMBS vs. MBBB - Expense Ratio Comparison
VMBS has a 0.04% expense ratio, which is lower than MBBB's 0.25% 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%.
Dividends
VMBS vs. MBBB - Dividend Comparison
VMBS's dividend yield for the trailing twelve months is around 4.19%, less than MBBB's 5.08% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MBBB VanEck Moody's Analytics BBB Corporate Bond ETF | 5.08% | 4.99% | 4.93% | 4.51% | 3.22% | 2.29% | 0.19% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VMBS Vanguard Mortgage-Backed Securities ETF | 4.19% | 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 MBBB have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VMBS has higher volatility (1.62%) compared to MBBB (1.52%). In terms of maximum drawdown, VMBS dropped -17.47% vs MBBB's -21.73%.
On 5-year performance, MBBB leads with 1.11% vs 0.48% for VMBS. On fees, VMBS is cheaper at 0.04% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, MBBB has performed better with a 1.11% return vs 0.48%. 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 0.25% for MBBB.
MBBB has the higher dividend yield at 5.08%, compared with 4.19% for VMBS.
VMBS is categorized as Mortgage Backed Securities, while MBBB is Corporate Bonds. VMBS tracks Barclays Capital U.S. MBS Index, while MBBB tracks MVIS Moody's Analytics US BBB Corporate Bond Index. They also come from different issuers: Vanguard and VanEck. Their fees differ too: 0.04% for VMBS and 0.25% for MBBB.
VMBS currently has the higher Sharpe Ratio (1.59 vs 1.31), 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.
Find the right allocation for VMBS and MBBB
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer