VMBSX vs. VFSIX
VMBSX (Vanguard Mortgage-Backed Securities Index Fund Admiral Shares) and VFSIX (Vanguard Short-Term Investment-Grade Fund Institutional Shares) are both Total Bond Market funds from Vanguard. Over the past 10 years, VMBSX returned 1.87%/yr vs 2.63%/yr for VFSIX. A 0.70 correlation means they provide meaningful diversification when combined. Both charge a 0.07% expense ratio.
Performance
VMBSX vs. VFSIX - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with VMBSX having a 0.81% return and VFSIX slightly higher at 0.83%. Over the past 10 years, VMBSX has underperformed VFSIX with an annualized return of 1.87%, while VFSIX has yielded a comparatively higher 2.63% annualized return.
VMBSX
- 1D
- 0.00%
- 1M
- 0.46%
- YTD
- 0.81%
- 6M
- 0.99%
- 1Y
- 6.98%
- 3Y*
- 4.69%
- 5Y*
- 0.55%
- 10Y*
- 1.87%
VFSIX
- 1D
- 0.00%
- 1M
- 0.31%
- YTD
- 0.83%
- 6M
- 1.12%
- 1Y
- 4.82%
- 3Y*
- 5.55%
- 5Y*
- 2.37%
- 10Y*
- 2.63%
VMBSX vs. VFSIX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VMBSX Vanguard Mortgage-Backed Securities Index Fund Admiral Shares | 0.81% | 8.43% | 1.76% | 4.99% | -11.56% | -1.35% | 3.74% | 11.47% | 0.87% | 2.32% |
VFSIX Vanguard Short-Term Investment-Grade Fund Institutional Shares | 0.83% | 6.89% | 5.12% | 5.88% | -5.72% | -0.59% | 5.28% | 5.88% | 1.00% | 2.15% |
Correlation
The correlation between VMBSX and VFSIX is 0.80, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.80 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.80 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.82 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.74 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.70 |
The correlation between VMBSX and VFSIX shifts across timeframes, from 0.70 (all time) to 0.82 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VMBSX vs. VFSIX — Risk / Return Rank
VMBSX
VFSIX
VMBSX vs. VFSIX - 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 Short-Term Investment-Grade Fund Institutional Shares (VFSIX). 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.
| VMBSX | VFSIX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.24 | ||
| Sortino ratioReturn per unit of downside risk | -0.97 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.47 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 2.63 | 2.84 | -0.21 |
| Martin ratioReturn relative to average drawdown | 8.86 | 11.24 | -2.38 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VMBSX | VFSIX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.84 | 2.08 | -0.24 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.09 | 0.80 | -0.71 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.39 | 1.06 | -0.67 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.59 | 1.53 | -0.95 |
Drawdowns
VMBSX vs. VFSIX - Drawdown Comparison
The maximum VMBSX drawdown since its inception was -17.44%, which is greater than VFSIX's maximum drawdown of -9.21%. Use the drawdown chart below to compare losses from any high point for VMBSX and VFSIX.
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Drawdown Indicators
| VMBSX | VFSIX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.44% | -9.21% | -8.23% |
Max Drawdown (1Y)Largest decline over 1 year | -2.67% | -1.71% | -0.96% |
Max Drawdown (3Y)Largest decline over 3 years | -7.53% | -1.71% | -5.82% |
Max Drawdown (5Y)Largest decline over 5 years | -17.12% | -9.21% | -7.91% |
Max Drawdown (10Y)Largest decline over 10 years | -17.44% | -9.21% | -8.23% |
Current DrawdownCurrent decline from peak | -1.22% | -0.23% | -0.99% |
Average DrawdownAverage peak-to-trough decline | -2.48% | -0.79% | -1.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.79% | 0.43% | +0.36% |
Volatility
VMBSX vs. VFSIX - Volatility Comparison
Vanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) has a higher volatility of 1.46% compared to Vanguard Short-Term Investment-Grade Fund Institutional Shares (VFSIX) at 0.75%. This indicates that VMBSX's price experiences larger fluctuations and is considered to be riskier than VFSIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VMBSX | VFSIX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.46% | 0.75% | +0.71% |
Volatility (6M)Calculated over the trailing 6-month period | 2.73% | 1.67% | +1.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.82% | 2.33% | +1.49% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.40% | 2.99% | +3.41% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.86% | 2.49% | +2.37% |
VMBSX vs. VFSIX - Expense Ratio Comparison
Both VMBSX and VFSIX have an expense ratio of 0.07%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VMBSX vs. VFSIX - Dividend Comparison
VMBSX's dividend yield for the trailing twelve months is around 4.16%, less than VFSIX's 4.74% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFSIX Vanguard Short-Term Investment-Grade Fund Institutional Shares | 4.74% | 4.61% | 4.19% | 2.88% | 2.06% | 1.81% | 2.35% | 2.95% | 2.80% | 2.13% | 2.17% | 2.12% |
VMBSX Vanguard Mortgage-Backed Securities Index Fund Admiral Shares | 4.16% | 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 VFSIX have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VMBSX has higher volatility (1.46%) compared to VFSIX (0.75%). In terms of maximum drawdown, VMBSX dropped -17.44% vs VFSIX's -9.21%.
VFSIX currently has the higher Sharpe Ratio (2.08 vs 1.84), 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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