VMBS vs. VIG
Compare and contrast key facts about Vanguard Mortgage-Backed Securities ETF (VMBS) and Vanguard Dividend Appreciation ETF (VIG).
VMBS and VIG 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. VIG is a passively managed fund by Vanguard that tracks the performance of the NASDAQ US Dividend Achievers Select Index. It was launched on Apr 21, 2006. Both VMBS and VIG 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 VIG.
Correlation
The correlation between VMBS and VIG 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. VIG - Performance Comparison
Key characteristics
VMBS:
1.01
VIG:
0.54
VMBS:
1.53
VIG:
0.95
VMBS:
1.18
VIG:
1.14
VMBS:
0.56
VIG:
0.64
VMBS:
3.12
VIG:
2.62
VMBS:
1.98%
VIG:
3.62%
VMBS:
5.95%
VIG:
15.77%
VMBS:
-17.52%
VIG:
-46.81%
VMBS:
-4.82%
VIG:
-5.88%
Returns By Period
In the year-to-date period, VMBS achieves a 2.38% return, which is significantly higher than VIG's -1.37% return. Over the past 10 years, VMBS has underperformed VIG with an annualized return of 1.01%, while VIG has yielded a comparatively higher 11.20% annualized return.
VMBS
2.38%
0.36%
1.78%
5.97%
-0.95%
1.01%
VIG
-1.37%
3.05%
-4.46%
8.49%
13.19%
11.20%
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VMBS vs. VIG - Expense Ratio Comparison
VMBS has a 0.04% expense ratio, which is lower than VIG's 0.06% 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%.
Risk-Adjusted Performance
VMBS vs. VIG — Risk-Adjusted Performance Rank
VMBS
VIG
VMBS vs. VIG - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and Vanguard Dividend Appreciation ETF (VIG). 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. VIG - Dividend Comparison
VMBS's dividend yield for the trailing twelve months is around 4.12%, more than VIG's 1.85% 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% |
VIG Vanguard Dividend Appreciation ETF | 1.85% | 1.73% | 1.88% | 1.96% | 1.55% | 1.63% | 1.71% | 2.08% | 1.88% | 2.14% | 2.34% | 1.95% |
Drawdowns
VMBS vs. VIG - Drawdown Comparison
The maximum VMBS drawdown since its inception was -17.52%, smaller than the maximum VIG drawdown of -46.81%. Use the drawdown chart below to compare losses from any high point for VMBS and VIG. For additional features, visit the drawdowns tool.
Volatility
VMBS vs. VIG - Volatility Comparison
The current volatility for Vanguard Mortgage-Backed Securities ETF (VMBS) is 2.26%, while Vanguard Dividend Appreciation ETF (VIG) has a volatility of 5.63%. This indicates that VMBS experiences smaller price fluctuations and is considered to be less risky than VIG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.