VMBS vs. SPMB
VMBS (Vanguard Mortgage-Backed Securities ETF) and SPMB (SPDR Portfolio Mortgage Backed Bond ETF) are both Mortgage Backed Securities funds - VMBS tracks the Barclays Capital U.S. MBS Index while SPMB tracks the Bloomberg US Aggregate Securitized - MBS. Both are passively managed. Over the past 10 years, VMBS returned 1.34%/yr vs 1.28%/yr for SPMB. A 0.70 correlation means they provide meaningful diversification when combined. Both charge a 0.04% expense ratio.
Performance
VMBS vs. SPMB - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VMBS achieves a 0.83% return, which is significantly higher than SPMB's 0.76% return. Both investments have delivered pretty close results over the past 10 years, with VMBS having a 1.34% annualized return and SPMB not far behind at 1.28%.
VMBS
- 1D
- -0.17%
- 1M
- 0.54%
- YTD
- 0.83%
- 6M
- 0.94%
- 1Y
- 6.16%
- 3Y*
- 4.49%
- 5Y*
- 0.57%
- 10Y*
- 1.34%
SPMB
- 1D
- -0.25%
- 1M
- 0.65%
- YTD
- 0.76%
- 6M
- 0.83%
- 1Y
- 5.97%
- 3Y*
- 4.27%
- 5Y*
- 0.40%
- 10Y*
- 1.28%
VMBS vs. SPMB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 0.83% | 8.36% | 1.70% | 5.34% | -11.90% | -1.28% | 3.76% | 6.19% | 0.91% | 2.47% |
SPMB SPDR Portfolio Mortgage Backed Bond ETF | 0.76% | 8.29% | 1.35% | 5.09% | -12.05% | -1.46% | 4.19% | 6.16% | 1.01% | 2.13% |
Correlation
The correlation between VMBS and SPMB is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.96 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.97 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.84 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.70 |
Over the past year, VMBS and SPMB have become more correlated (0.96) than their long-term average of 0.70, meaning their price movements have been converging.
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. SPMB — Risk / Return Rank
VMBS
SPMB
VMBS vs. SPMB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and SPDR Portfolio Mortgage Backed Bond ETF (SPMB). 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 | SPMB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.02 | ||
| Sortino ratioReturn per unit of downside risk | 0.00 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.26 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 2.30 | 2.08 | +0.23 |
| Martin ratioReturn relative to average drawdown | 7.33 | 6.45 | +0.88 |
Loading charts...
Drawdowns
VMBS vs. SPMB - Drawdown Comparison
The maximum VMBS drawdown since its inception was -17.47%, roughly equal to the maximum SPMB drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for VMBS and SPMB.
Loading charts...
Drawdown Indicators
| VMBS | SPMB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.47% | -18.03% | +0.56% |
Max Drawdown (1Y)Largest decline over 1 year | -2.68% | -2.89% | +0.21% |
Max Drawdown (3Y)Largest decline over 3 years | -7.65% | -7.66% | +0.01% |
Max Drawdown (5Y)Largest decline over 5 years | -17.12% | -17.49% | +0.37% |
Max Drawdown (10Y)Largest decline over 10 years | -17.47% | -18.03% | +0.56% |
Current DrawdownCurrent decline from peak | -1.16% | -1.34% | +0.18% |
Average DrawdownAverage peak-to-trough decline | -2.49% | -2.85% | +0.36% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.84% | 0.93% | -0.09% |
Volatility
VMBS vs. SPMB - Volatility Comparison
Vanguard Mortgage-Backed Securities ETF (VMBS) and SPDR Portfolio Mortgage Backed Bond ETF (SPMB) 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.
Loading charts...
Volatility by Period
| VMBS | SPMB | 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 | 3.28% | 3.19% | +0.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.31% | 4.23% | +0.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.78% | 6.79% | -0.01% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.41% | 7.61% | -2.20% |
VMBS vs. SPMB - Expense Ratio Comparison
Both VMBS and SPMB have an expense ratio of 0.04%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VMBS vs. SPMB - Dividend Comparison
VMBS's dividend yield for the trailing twelve months is around 4.18%, more than SPMB's 4.08% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SPMB SPDR Portfolio Mortgage Backed Bond ETF | 4.08% | 3.98% | 3.76% | 3.21% | 2.98% | 2.59% | 2.95% | 3.24% | 3.36% | 3.13% | 2.99% | 3.05% |
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
With a correlation of 0.96, VMBS and SPMB 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.
SPMB has higher volatility (1.23%) compared to VMBS (1.19%). In terms of maximum drawdown, VMBS dropped -17.47% vs SPMB's -18.03%.
On 10-year performance, VMBS leads with 1.34% vs 1.28% for SPMB. Both ETFs have the same 0.04% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VMBS has performed better with a 1.34% return vs 1.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VMBS and SPMB have the same expense ratio: 0.04% per year.
VMBS has the higher dividend yield at 4.18%, compared with 4.08% for SPMB.
VMBS tracks Barclays Capital U.S. MBS Index, while SPMB tracks Bloomberg US Aggregate Securitized - MBS. They also come from different issuers: Vanguard and State Street.
VMBS currently has the higher Sharpe Ratio (1.44 vs 1.42), 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 SPMB
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