VMBS vs. VGIT
Compare and contrast key facts about Vanguard Mortgage-Backed Securities ETF (VMBS) and Vanguard Intermediate-Term Treasury ETF (VGIT).
VMBS and VGIT 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. VGIT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 3-10 Year Government Float Adjusted Index. It was launched on Nov 19, 2009. Both VMBS and VGIT 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 VGIT.
Correlation
The correlation between VMBS and VGIT is -0.05. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
VMBS vs. VGIT - Performance Comparison
Key characteristics
VMBS:
1.01
VGIT:
1.35
VMBS:
1.53
VGIT:
2.06
VMBS:
1.18
VGIT:
1.24
VMBS:
0.56
VGIT:
0.53
VMBS:
3.12
VGIT:
3.24
VMBS:
1.98%
VGIT:
1.93%
VMBS:
5.95%
VGIT:
4.60%
VMBS:
-17.52%
VGIT:
-16.05%
VMBS:
-4.82%
VGIT:
-5.74%
Returns By Period
In the year-to-date period, VMBS achieves a 2.38% return, which is significantly lower than VGIT's 3.17% return. Over the past 10 years, VMBS has underperformed VGIT with an annualized return of 1.01%, while VGIT has yielded a comparatively higher 1.32% annualized return.
VMBS
2.38%
0.36%
1.78%
5.97%
-0.95%
1.01%
VGIT
3.17%
0.35%
2.79%
6.16%
-0.99%
1.32%
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VMBS vs. VGIT - Expense Ratio Comparison
Both VMBS and VGIT 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%.
Risk-Adjusted Performance
VMBS vs. VGIT — Risk-Adjusted Performance Rank
VMBS
VGIT
VMBS vs. VGIT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and Vanguard Intermediate-Term Treasury ETF (VGIT). 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. VGIT - Dividend Comparison
VMBS's dividend yield for the trailing twelve months is around 4.12%, more than VGIT's 3.74% yield.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 4.12% | 3.94% | 3.31% | 2.35% | 1.02% | 1.81% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% | 1.90% |
VGIT Vanguard Intermediate-Term Treasury ETF | 3.74% | 3.67% | 2.72% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% | 1.54% |
Drawdowns
VMBS vs. VGIT - Drawdown Comparison
The maximum VMBS drawdown since its inception was -17.52%, which is greater than VGIT's maximum drawdown of -16.05%. Use the drawdown chart below to compare losses from any high point for VMBS and VGIT. For additional features, visit the drawdowns tool.
Volatility
VMBS vs. VGIT - Volatility Comparison
Vanguard Mortgage-Backed Securities ETF (VMBS) has a higher volatility of 2.26% compared to Vanguard Intermediate-Term Treasury ETF (VGIT) at 1.51%. This indicates that VMBS's price experiences larger fluctuations and is considered to be riskier than VGIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.