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VMBSX vs. VGLT
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

VMBSX vs. VGLT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) and Vanguard Long-Term Treasury ETF (VGLT). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VMBSX achieves a 0.81% return, which is significantly higher than VGLT's -0.41% return. Over the past 10 years, VMBSX has outperformed VGLT with an annualized return of 1.87%, while VGLT has yielded a comparatively lower -1.10% 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%

VGLT

1D
-0.40%
1M
0.71%
YTD
-0.41%
6M
-1.68%
1Y
5.25%
3Y*
-0.72%
5Y*
-5.30%
10Y*
-1.10%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VMBSX vs. VGLT - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
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%
VGLT
Vanguard Long-Term Treasury ETF
-0.41%5.35%-6.28%3.27%-29.34%-4.98%17.57%14.30%-1.54%8.64%

Correlation

The correlation between VMBSX and VGLT is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.


Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.89

Correlation (3Y)
Calculated over the trailing 3-year period

0.90

Correlation (5Y)
Calculated over the trailing 5-year period

0.84

Correlation (10Y)
Calculated over the trailing 10-year period

0.77

Correlation (All Time)
Calculated using the full available price history since Nov 25, 2009

0.74

The correlation between VMBSX and VGLT shifts across timeframes, from 0.74 (all time) to 0.90 (3 years), reflecting how their relationship changes across market environments.

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Return for Risk

VMBSX vs. VGLT — Risk / Return Rank

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

VMBSX
VMBSX Risk / Return Rank: 4242
Overall Rank
VMBSX Sharpe Ratio Rank: 4040
Sharpe Ratio Rank
VMBSX Sortino Ratio Rank: 4242
Sortino Ratio Rank
VMBSX Omega Ratio Rank: 4040
Omega Ratio Rank
VMBSX Calmar Ratio Rank: 4848
Calmar Ratio Rank
VMBSX Martin Ratio Rank: 4141
Martin Ratio Rank

VGLT
VGLT Risk / Return Rank: 1818
Overall Rank
VGLT Sharpe Ratio Rank: 1818
Sharpe Ratio Rank
VGLT Sortino Ratio Rank: 1717
Sortino Ratio Rank
VGLT Omega Ratio Rank: 1616
Omega Ratio Rank
VGLT Calmar Ratio Rank: 1818
Calmar Ratio Rank
VGLT Martin Ratio Rank: 1818
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.

VMBSX vs. VGLT - 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 Long-Term Treasury ETF (VGLT). 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.


VMBSXVGLTDifference
Sharpe ratioReturn per unit of total volatility

+1.25

Sortino ratioReturn per unit of downside risk

+1.83

Omega ratioGain probability vs. loss probability

1.34

1.10

+0.24

Calmar ratioReturn relative to maximum drawdown

2.63

0.75

+1.88

Martin ratioReturn relative to average drawdown

8.86

1.96

+6.90

VMBSX vs. VGLT - Sharpe Ratio Comparison

The current VMBSX Sharpe Ratio is 1.84, which is higher than the VGLT Sharpe Ratio of 0.59. The chart below compares the historical Sharpe Ratios of VMBSX and VGLT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.


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Sharpe Ratios by Period


VMBSXVGLTDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.84

0.59

+1.25

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.09

-0.37

+0.45

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.39

-0.08

+0.47

Sharpe Ratio (All Time)

Calculated using the full available price history

0.59

0.19

+0.40

Drawdowns

VMBSX vs. VGLT - Drawdown Comparison

The maximum VMBSX drawdown since its inception was -17.44%, smaller than the maximum VGLT drawdown of -46.18%. Use the drawdown chart below to compare losses from any high point for VMBSX and VGLT.


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Drawdown Indicators


VMBSXVGLTDifference

Max Drawdown

Largest peak-to-trough decline

-17.44%

-46.18%

+28.74%

Max Drawdown (1Y)

Largest decline over 1 year

-2.67%

-7.01%

+4.34%

Max Drawdown (3Y)

Largest decline over 3 years

-7.53%

-17.68%

+10.15%

Max Drawdown (5Y)

Largest decline over 5 years

-17.12%

-40.98%

+23.86%

Max Drawdown (10Y)

Largest decline over 10 years

-17.44%

-46.18%

+28.74%

Current Drawdown

Current decline from peak

-1.22%

-36.83%

+35.61%

Average Drawdown

Average peak-to-trough decline

-2.48%

-15.06%

+12.58%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.79%

2.68%

-1.89%

Volatility

VMBSX vs. VGLT - Volatility Comparison

The current volatility for Vanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) is 1.46%, while Vanguard Long-Term Treasury ETF (VGLT) has a volatility of 2.59%. This indicates that VMBSX experiences smaller price fluctuations and is considered to be less risky than VGLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


VMBSXVGLTDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.46%

2.59%

-1.13%

Volatility (6M)

Calculated over the trailing 6-month period

2.73%

5.94%

-3.21%

Volatility (1Y)

Calculated over the trailing 1-year period

3.82%

8.88%

-5.06%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.40%

14.58%

-8.18%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

4.86%

13.81%

-8.95%

VMBSX vs. VGLT - Expense Ratio Comparison

VMBSX has a 0.07% expense ratio, which is higher than VGLT'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%.


Dividends

VMBSX vs. VGLT - Dividend Comparison

VMBSX's dividend yield for the trailing twelve months is around 4.16%, less than VGLT's 4.61% yield.


PositionTTM20252024202320222021202020192018201720162015
VGLT
Vanguard Long-Term Treasury ETF
4.61%4.44%4.33%3.33%2.84%1.82%2.15%2.46%2.71%2.55%2.69%3.21%
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 VGLT have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VGLT has higher volatility (2.59%) compared to VMBSX (1.46%). In terms of maximum drawdown, VMBSX dropped -17.44% vs VGLT's -46.18%.

VMBSX currently has the higher Sharpe Ratio (1.84 vs 0.59), 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.

Portfolio Optimizer

Find the right allocation for VMBSX and VGLT

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