VMBS vs. MBSX

Last updated Jun 5, 2026

VMBS (Vanguard Mortgage-Backed Securities ETF) and MBSX (Regan Fixed Rate MBS ETF) are both Mortgage Backed Securities funds. VMBS is passively managed, while MBSX is actively managed. Over the past year, VMBS returned 6.25% vs 4.56% for MBSX. At a 0.10 correlation, their price movements are largely independent. VMBS charges 0.04%/yr vs 0.40%/yr for MBSX.

Performance

VMBS vs. MBSX - Performance Comparison

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

Returns By Period

In the year-to-date period, VMBS achieves a 0.70% return, which is significantly higher than MBSX's -1.98% return.

VMBS

• 1D: 0.04%
• 1M: 0.18%
• YTD: 0.70%
• 6M: 1.11%
• 1Y: 6.25%
• 3Y*: 4.63%
• 5Y*: 0.49%
• 10Y*: 1.36%

MBSX

• 1D: -7.71%
• 1M: -4.80%
• YTD: -1.98%
• 6M: -1.53%
• 1Y: 4.56%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VMBS vs. MBSX - Yearly Performance Comparison

	2026 (YTD)	2025
VMBS Vanguard Mortgage-Backed Securities ETF	0.70%	5.20%
MBSX Regan Fixed Rate MBS ETF	-1.98%	8.23%

Correlation

The correlation between VMBS and MBSX is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.11
Correlation (All Time) Calculated using the full available price history since May 2, 2025	0.10

Return for Risk

VMBS vs. MBSX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VMBS

VMBS Risk / Return Rank: 45
VMBS Sharpe Ratio Rank: 42
VMBS Sortino Ratio Rank: 44
VMBS Omega Ratio Rank: 41
VMBS Calmar Ratio Rank: 48
VMBS Martin Ratio Rank: 48

MBSX

MBSX Risk / Return Rank: 13
MBSX Sharpe Ratio Rank: 10
MBSX Sortino Ratio Rank: 13
MBSX Omega Ratio Rank: 17
MBSX Calmar Ratio Rank: 11
MBSX Martin Ratio Rank: 12

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. MBSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and Regan Fixed Rate MBS ETF (MBSX). 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	MBSX	Difference
Sharpe ratio: Return per unit of total volatility	1.45	0.08	+1.37
Sortino ratio: Return per unit of downside risk	2.15	0.51	+1.64
Omega ratio: Gain probability vs. loss probability	1.26	1.10	+0.16
Calmar ratio: Return relative to maximum drawdown	2.34	0.17	+2.17
Martin ratio: Return relative to average drawdown	7.83	0.67	+7.16
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VMBS vs. MBSX - Sharpe Ratio Comparison

The current VMBS Sharpe Ratio is 1.45, which is higher than the MBSX Sharpe Ratio of 0.08. The chart below compares the historical Sharpe Ratios of VMBS and MBSX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VMBS	MBSX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.45	0.08	+1.37
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.07	—	—
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	0.10	+0.36

Drawdowns

VMBS vs. MBSX - Drawdown Comparison

The maximum VMBS drawdown since its inception was -17.47%, smaller than the maximum MBSX drawdown of -27.57%. Use the drawdown chart below to compare losses from any high point for VMBS and MBSX.

Drawdown Indicators

	VMBS	MBSX	Difference
Max Drawdown Largest peak-to-trough decline	-17.47%	-27.57%	+10.10%
Max Drawdown (1Y) Largest decline over 1 year	-2.68%	-27.57%	+24.89%
Max Drawdown (3Y) Largest decline over 3 years	-7.65%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-17.12%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-17.47%	—	—
Current Drawdown Current decline from peak	-1.29%	-26.68%	+25.39%
Average Drawdown Average peak-to-trough decline	-2.49%	-6.10%	+3.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.80%	6.85%	-6.05%

Volatility

VMBS vs. MBSX - Volatility Comparison

The current volatility for Vanguard Mortgage-Backed Securities ETF (VMBS) is 1.61%, while Regan Fixed Rate MBS ETF (MBSX) has a volatility of 42.25%. This indicates that VMBS experiences smaller price fluctuations and is considered to be less risky than MBSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMBS	MBSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.61%	42.25%	-40.64%
Volatility (6M) Calculated over the trailing 6-month period	3.16%	51.45%	-48.29%
Volatility (1Y) Calculated over the trailing 1-year period	4.37%	53.97%	-49.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.77%	55.11%	-48.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.40%	55.11%	-49.71%

VMBS vs. MBSX - Expense Ratio Comparison

VMBS has a 0.04% expense ratio, which is lower than MBSX's 0.40% expense ratio.

Dividends

VMBS vs. MBSX - Dividend Comparison

VMBS's dividend yield for the trailing twelve months is around 4.18%, more than MBSX's 3.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MBSX Regan Fixed Rate MBS ETF	3.64%	2.77%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VMBS Vanguard Mortgage-Backed Securities ETF	4.18%	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 MBSX in my portfolio?

VMBS and MBSX have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VMBS or MBSX?

MBSX has higher volatility (42.25%) compared to VMBS (1.61%). In terms of maximum drawdown, VMBS dropped -17.47% vs MBSX's -27.57%.

Which ETF is better, VMBS or MBSX?

On 1-year performance, VMBS leads with 6.25% vs 4.56% for MBSX. On fees, VMBS is cheaper at 0.04% per year. On volatility, VMBS has been the lower-risk option at 1.61%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VMBS or MBSX?

Over the 1-year period, VMBS has performed better with a 6.25% return vs 4.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VMBS or MBSX?

VMBS is cheaper with a 0.04% expense ratio, compared with 0.40% for MBSX.

Which ETF pays a higher dividend yield, VMBS or MBSX?

VMBS has the higher dividend yield at 4.18%, compared with 3.64% for MBSX.

What is the main difference between VMBS and MBSX?

They also come from different issuers: Vanguard and Regan. Their fees differ too: 0.04% for VMBS and 0.40% for MBSX.

Which has better risk-adjusted returns?

VMBS currently has the higher Sharpe Ratio (1.45 vs 0.08), 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.