VMBSX vs. VDIGX
VMBSX (Vanguard Mortgage-Backed Securities Index Fund Admiral Shares) and VDIGX (Vanguard Dividend Growth Fund) are both mutual funds - VMBSX is a Total Bond Market fund managed by Vanguard, while VDIGX is a Dividend fund actively managed by Vanguard. Over the past 10 years, VMBSX returned 1.72%/yr vs 12.27%/yr for VDIGX. Their -0.02 correlation means they have often moved in opposite directions in the past. VMBSX charges 0.07%/yr vs 0.20%/yr for VDIGX.
Performance
VMBSX vs. VDIGX - Performance Comparison
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Returns By Period
In the year-to-date period, VMBSX achieves a -0.08% return, which is significantly lower than VDIGX's 5.07% return. Over the past 10 years, VMBSX has underperformed VDIGX with an annualized return of 1.72%, while VDIGX has yielded a comparatively higher 12.27% annualized return.
VMBSX
- 1D
- -0.38%
- 1M
- -1.02%
- 6M
- -0.42%
- YTD
- -0.08%
- 1Y
- 3.41%
- 3Y*
- 4.65%
- 5Y*
- 0.27%
- 10Y*
- 1.72%
- ALL TIME*
- 2.31%
VDIGX
- 1D
- -0.34%
- 1M
- -0.37%
- 6M
- 3.13%
- YTD
- 5.07%
- 1Y
- 12.01%
- 3Y*
- 13.50%
- 5Y*
- 9.49%
- 10Y*
- 12.27%
- ALL TIME*
- 9.35%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $0.00 | $0.00 | $0.00 | |
| $0.00 | $0.00 | $0.00 |
VMBSX vs. VDIGX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VMBSX Vanguard Mortgage-Backed Securities Index Fund Admiral Shares | -0.08% | 8.43% | 1.76% | 4.99% | -11.56% | -1.35% | 3.74% | 11.47% | 0.87% | 2.32% |
VDIGX Vanguard Dividend Growth Fund | 5.07% | 11.11% | 20.84% | 8.11% | -4.89% | 24.86% | 12.04% | 30.94% | 0.08% | 19.32% |
Correlation
The correlation between VMBSX and VDIGX is 0.39, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.39 |
Correlation (3Y) Balances recent behavior with more history. | 0.32 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.27 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.12 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | -0.02 |
The correlation between VMBSX and VDIGX shifts across timeframes, from -0.02 (all time) to 0.39 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VMBSX vs. VDIGX — Risk / Return Rank
VMBSX
VDIGX
VMBSX vs. VDIGX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) and Vanguard Dividend Growth Fund (VDIGX). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| VMBSX | VDIGX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.01 | ||
| Sortino ratioReturn per unit of downside risk | -0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.19 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.60 | 1.25 | +0.36 |
| Martin ratioReturn relative to average drawdown | 4.52 | 4.93 | -0.41 |
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Drawdowns
VMBSX vs. VDIGX - Drawdown Comparison
The maximum VMBSX drawdown since its inception was -17.44%, smaller than the maximum VDIGX drawdown of -45.23%. Use the drawdown chart below to compare losses from any high point for VMBSX and VDIGX.
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Drawdown Indicators
| VMBSX | VDIGX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.44% | -45.23% | +27.79% |
Max Drawdown (1Y)Largest decline over 1 year | -2.67% | -9.09% | +6.42% |
Max Drawdown (3Y)Largest decline over 3 years | -6.43% | -10.23% | +3.80% |
Max Drawdown (5Y)Largest decline over 5 years | -17.01% | -16.18% | -0.83% |
Max Drawdown (10Y)Largest decline over 10 years | -17.44% | -32.98% | +15.54% |
Current DrawdownCurrent decline from peak | -2.09% | -0.72% | -1.37% |
Average DrawdownAverage peak-to-trough decline | -2.47% | -6.62% | +4.15% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.94% | 2.30% | -1.36% |
Volatility
VMBSX vs. VDIGX - Volatility Comparison
The current volatility for Vanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) is 1.17%, while Vanguard Dividend Growth Fund (VDIGX) has a volatility of 2.87%. This indicates that VMBSX experiences smaller price fluctuations and is considered to be less risky than VDIGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VMBSX | VDIGX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.17% | 2.87% | -1.70% |
Volatility (6M)Calculated over the trailing 6-month period | 3.05% | 7.90% | -4.85% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.81% | 10.26% | -6.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.44% | 13.85% | -7.41% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.88% | 15.67% | -10.79% |
VMBSX vs. VDIGX - Expense Ratio Comparison
VMBSX has a 0.07% expense ratio, which is lower than VDIGX's 0.20% 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%.
Dividends
VMBSX vs. VDIGX - Dividend Comparison
VMBSX's dividend yield for the trailing twelve months is around 3.87%, less than VDIGX's 23.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VDIGX Vanguard Dividend Growth Fund | 23.36% | 21.90% | 21.94% | 2.29% | 6.06% | 5.45% | 2.83% | 4.70% | 8.72% | 5.16% | 2.86% | 5.70% |
VMBSX Vanguard Mortgage-Backed Securities Index Fund Admiral Shares | 3.87% | 4.18% | 4.24% | 3.28% | 2.31% | 0.99% | 2.00% | 7.48% | 2.72% | 2.16% | 1.98% | 2.01% |
Frequently Asked Questions
VMBSX and VDIGX have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VDIGX has higher volatility (2.87%) compared to VMBSX (1.17%). In terms of maximum drawdown, VMBSX dropped -17.44% vs VDIGX's -45.23%.
VMBSX currently has the higher Sharpe Ratio (1.12 vs 1.11), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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