VMBS vs. VTV

Last updated Apr 1, 2026

Compare and contrast key facts about Vanguard Mortgage-Backed Securities ETF (VMBS) and Vanguard Value ETF (VTV).

VMBS and VTV 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. VTV is a passively managed fund by Vanguard that tracks the performance of the MSCI US Prime Market Value Index. It was launched on Jan 26, 2004. Both VMBS and VTV 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. VTV - Performance Comparison

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

VMBS vs. VTV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
VTV Vanguard Value ETF	3.30%	15.27%	15.95%	9.32%	-2.09%	26.53%	2.33%	25.66%	-5.47%	17.15%

Returns By Period

In the year-to-date period, VMBS achieves a 0.41% return, which is significantly lower than VTV's 3.30% return. Over the past 10 years, VMBS has underperformed VTV with an annualized return of 1.41%, while VTV has yielded a comparatively higher 11.80% 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%

VTV

• 1D: 1.64%
• 1M: -4.81%
• YTD: 3.30%
• 6M: 6.34%
• 1Y: 16.02%
• 3Y*: 15.09%
• 5Y*: 10.86%
• 10Y*: 11.80%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VMBS vs. VTV - Expense Ratio Comparison

Both VMBS and VTV 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

VTV

Vanguard Value ETF

Return for Risk

VMBS vs. VTV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VMBS

VMBS Risk / Return Rank: 68
VMBS Sharpe Ratio Rank: 69
VMBS Sortino Ratio Rank: 68
VMBS Omega Ratio Rank: 60
VMBS Calmar Ratio Rank: 77
VMBS Martin Ratio Rank: 64

VTV

VTV Risk / Return Rank: 67
VTV Sharpe Ratio Rank: 65
VTV Sortino Ratio Rank: 65
VTV Omega Ratio Rank: 67
VTV Calmar Ratio Rank: 65
VTV Martin Ratio Rank: 72

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. VTV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities ETF (VMBS) and Vanguard Value ETF (VTV). 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.

	VMBS	VTV	Difference
Sharpe ratio Return per unit of total volatility	1.16	1.08	+0.08
Sortino ratio Return per unit of downside risk	1.67	1.56	+0.11
Omega ratio Gain probability vs. loss probability	1.21	1.23	-0.02
Calmar ratio Return relative to maximum drawdown	1.95	1.53	+0.42
Martin ratio Return relative to average drawdown	6.10	6.93	-0.83
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. VTV - Sharpe Ratio Comparison

The current VMBS Sharpe Ratio is 1.16, which is comparable to the VTV Sharpe Ratio of 1.08. The chart below compares the historical Sharpe Ratios of VMBS and VTV, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	VMBS	VTV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.16	1.08	+0.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.07	0.79	-0.71
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.26	0.71	-0.45
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.49	-0.03

Correlation

The correlation between VMBS and VTV is -0.06. 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. VTV - Dividend Comparison

VMBS's dividend yield for the trailing twelve months is around 4.23%, more than VTV's 2.02% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VTV Vanguard Value ETF	2.02%	2.05%	2.31%	2.46%	2.52%	2.15%	2.56%	2.50%	2.73%	2.29%	2.44%	2.60%

Drawdowns

VMBS vs. VTV - Drawdown Comparison

The maximum VMBS drawdown since its inception was -17.47%, smaller than the maximum VTV drawdown of -59.27%. Use the drawdown chart below to compare losses from any high point for VMBS and VTV.

Drawdown Indicators

	VMBS	VTV	Difference
Max Drawdown Largest peak-to-trough decline	-17.47%	-59.27%	+41.80%
Max Drawdown (1Y) Largest decline over 1 year	-3.00%	-11.32%	+8.32%
Max Drawdown (5Y) Largest decline over 5 years	-17.12%	-17.04%	-0.08%
Max Drawdown (10Y) Largest decline over 10 years	-17.47%	-36.78%	+19.31%
Current Drawdown Current decline from peak	-1.57%	-4.81%	+3.24%
Average Drawdown Average peak-to-trough decline	-2.51%	-7.92%	+5.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	2.50%	-1.54%

Volatility

VMBS vs. VTV - Volatility Comparison

The current volatility for Vanguard Mortgage-Backed Securities ETF (VMBS) is 1.90%, while Vanguard Value ETF (VTV) has a volatility of 3.78%. This indicates that VMBS experiences smaller price fluctuations and is considered to be less risky than VTV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMBS	VTV	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.90%	3.78%	-1.88%
Volatility (6M) Calculated over the trailing 6-month period	2.89%	7.72%	-4.83%
Volatility (1Y) Calculated over the trailing 1-year period	5.00%	14.93%	-9.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.71%	13.88%	-7.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.37%	16.67%	-11.30%