VMBS vs. VTI
Compare and contrast key facts about Vanguard Mortgage-Backed Securities ETF (VMBS) and Vanguard Total Stock Market ETF (VTI).
VMBS and VTI 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. VTI is a passively managed fund by Vanguard that tracks the performance of the CRSP US Total Market Index. It was launched on May 24, 2001. Both VMBS and VTI 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 VTI.
Correlation
The correlation between VMBS and VTI 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. VTI - Performance Comparison
Key characteristics
VMBS:
0.26
VTI:
2.05
VMBS:
0.41
VTI:
2.74
VMBS:
1.05
VTI:
1.38
VMBS:
0.14
VTI:
3.06
VMBS:
0.78
VTI:
13.06
VMBS:
2.07%
VTI:
2.01%
VMBS:
6.18%
VTI:
12.79%
VMBS:
-17.46%
VTI:
-55.45%
VMBS:
-7.32%
VTI:
-2.48%
Returns By Period
In the year-to-date period, VMBS achieves a 1.32% return, which is significantly lower than VTI's 25.60% return. Over the past 10 years, VMBS has underperformed VTI with an annualized return of 0.86%, while VTI has yielded a comparatively higher 12.55% annualized return.
VMBS
1.32%
-0.66%
1.10%
1.69%
-0.70%
0.86%
VTI
25.60%
-0.53%
10.84%
25.91%
14.22%
12.55%
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VMBS vs. VTI - Expense Ratio Comparison
VMBS has a 0.04% expense ratio, which is higher than VTI's 0.03% expense ratio. However, 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. VTI - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and Vanguard Total Stock Market ETF (VTI). 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. VTI - Dividend Comparison
VMBS's dividend yield for the trailing twelve months is around 3.61%, more than VTI's 1.25% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 3.61% | 3.31% | 2.35% | 1.03% | 2.01% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% | 1.90% | 0.99% |
VTI Vanguard Total Stock Market ETF | 1.25% | 1.44% | 1.67% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% | 1.74% |
Drawdowns
VMBS vs. VTI - Drawdown Comparison
The maximum VMBS drawdown since its inception was -17.46%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for VMBS and VTI. For additional features, visit the drawdowns tool.
Volatility
VMBS vs. VTI - Volatility Comparison
The current volatility for Vanguard Mortgage-Backed Securities ETF (VMBS) is 1.90%, while Vanguard Total Stock Market ETF (VTI) has a volatility of 3.98%. This indicates that VMBS experiences smaller price fluctuations and is considered to be less risky than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.