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VMBS vs. VIG
Performance
Return for Risk
Dividends
Drawdowns
Volatility

VMBS vs. VIG

Last updated Apr 1, 2026

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 Dec 19, 2013. 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.

Performance

VMBS vs. VIG - Performance Comparison

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

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VMBS vs. VIG - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VMBS
Vanguard Mortgage-Backed Securities ETF		0.41%8.36%1.70%5.34%-11.90%-1.28%3.76%6.19%0.91%2.47%
VIG
Vanguard Dividend Appreciation ETF		-1.77%14.17%16.99%14.51%-9.80%23.76%15.43%29.62%-2.08%22.22%

Returns By Period

In the year-to-date period, VMBS achieves a 0.41% return, which is significantly higher than VIG's -1.77% return. Over the past 10 years, VMBS has underperformed VIG with an annualized return of 1.41%, while VIG has yielded a comparatively higher 12.25% annualized return.

VMBS

1D
0.21%
1M
-1.57%
YTD
0.41%
6M
2.06%
1Y
5.79%
3Y*
4.29%
5Y*
0.49%
10Y*
1.41%

VIG

1D
2.07%
1M
-5.18%
YTD
-1.77%
6M
0.45%
1Y
12.67%
3Y*
13.80%
5Y*
9.76%
10Y*
12.25%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Mortgage-Backed Securities ETF

Vanguard Dividend Appreciation ETF

Often compared with VMBS:
VMBS vs. SPMBVMBS vs. BNDVMBS vs. VGITVMBS vs. VOOVMBS vs. JMBSVMBS vs. FSECVMBS vs. GNMA
Often compared with VIG:
VIG vs. SCHDVIG vs. VYMVIG vs. VOOVIG vs. DGROVIG vs. VDIGXVIG vs. VTIVIG vs. VTV

VMBS vs. VIG - Expense Ratio Comparison

Both VMBS and VIG 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%.

VMBS
Vanguard Mortgage-Backed Securities ETF
VIG
Vanguard Dividend Appreciation ETF

Return for Risk

VMBS vs. VIG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VMBS
VMBS Risk / Return Rank: 6868
Overall Rank
VMBS Sharpe Ratio Rank: 6969
Sharpe Ratio Rank
VMBS Sortino Ratio Rank: 6868
Sortino Ratio Rank
VMBS Omega Ratio Rank: 6060
Omega Ratio Rank
VMBS Calmar Ratio Rank: 7777
Calmar Ratio Rank
VMBS Martin Ratio Rank: 6464
Martin Ratio Rank
VIG
VIG Risk / Return Rank: 5555
Overall Rank
VIG Sharpe Ratio Rank: 5050
Sharpe Ratio Rank
VIG Sortino Ratio Rank: 5252
Sortino Ratio Rank
VIG Omega Ratio Rank: 5353
Omega Ratio Rank
VIG Calmar Ratio Rank: 5757
Calmar Ratio Rank
VIG Martin Ratio Rank: 6363
Martin Ratio Rank
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. VIG - Risk-Adjusted Trends 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.

VMBSVIGDifference

Sharpe ratio

Return per unit of total volatility

1.16

0.83

+0.33

Sortino ratio

Return per unit of downside risk

1.67

1.28

+0.39

Omega ratio

Gain probability vs. loss probability

1.21

1.18

+0.03

Calmar ratio

Return relative to maximum drawdown

1.95

1.28

+0.67

Martin ratio

Return relative to average drawdown

6.10

5.73

+0.37

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. VIG - Sharpe Ratio Comparison

The current VMBS Sharpe Ratio is 1.16, which is higher than the VIG Sharpe Ratio of 0.83. The chart below compares the historical Sharpe Ratios of VMBS and VIG, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

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Sharpe Ratios by Period

VMBSVIGDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.16

0.83

+0.33

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.07

0.69

-0.61

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.26

0.77

-0.50

Sharpe Ratio (All Time)

Calculated using the full available price history

0.46

0.57

-0.11

Correlation

The correlation between VMBS and VIG is -0.02. 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.

Dividends

VMBS vs. VIG - Dividend Comparison

VMBS's dividend yield for the trailing twelve months is around 4.23%, more than VIG's 1.61% yield.

TTM20252024202320222021202020192018201720162015
VMBS
Vanguard Mortgage-Backed Securities ETF		4.23%4.20%3.94%3.31%2.35%1.02%2.01%2.77%2.72%2.16%2.10%2.12%
VIG
Vanguard Dividend Appreciation ETF		1.61%1.62%1.73%1.88%1.96%1.55%1.63%1.71%2.08%1.88%2.14%2.34%

Drawdowns

VMBS vs. VIG - Drawdown Comparison

The maximum VMBS drawdown since its inception was -17.47%, 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.

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Drawdown Indicators

VMBSVIGDifference

Max Drawdown

Largest peak-to-trough decline

-17.47%

-46.81%

+29.34%

Max Drawdown (1Y)

Largest decline over 1 year

-3.00%

-10.83%

+7.83%

Max Drawdown (5Y)

Largest decline over 5 years

-17.12%

-20.39%

+3.27%

Max Drawdown (10Y)

Largest decline over 10 years

-17.47%

-31.72%

+14.25%

Current Drawdown

Current decline from peak

-1.57%

-6.00%

+4.43%

Average Drawdown

Average peak-to-trough decline

-2.51%

-5.55%

+3.04%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.96%

2.42%

-1.46%

Volatility

VMBS vs. VIG - Volatility Comparison

The current volatility for Vanguard Mortgage-Backed Securities ETF (VMBS) is 1.90%, while Vanguard Dividend Appreciation ETF (VIG) has a volatility of 4.07%. 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.

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Volatility by Period

VMBSVIGDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.90%

4.07%

-2.17%

Volatility (6M)

Calculated over the trailing 6-month period

2.89%

7.84%

-4.95%

Volatility (1Y)

Calculated over the trailing 1-year period

5.00%

15.31%

-10.31%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.71%

14.26%

-7.55%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.37%

16.05%

-10.68%