VMBSX vs. VGLT
VMBSX (Vanguard Mortgage-Backed Securities Index Fund Admiral Shares) and VGLT (Vanguard Long-Term Treasury ETF) are both funds - VMBSX is a Total Bond Market fund managed by Vanguard, while VGLT is a Government Bonds fund tracking the Bloomberg U.S. Long Treasury Index. Over the past 10 years, VMBSX returned 1.87%/yr vs -1.10%/yr for VGLT. A 0.74 correlation means they provide meaningful diversification when combined. VMBSX charges 0.07%/yr vs 0.03%/yr for VGLT.
Performance
VMBSX vs. VGLT - Performance Comparison
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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%
VMBSX vs. VGLT - 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% |
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
VMBSX
VGLT
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.
| VMBSX | VGLT | Difference | |
|---|---|---|---|
| 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 |
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 | VGLT | Difference | |
|---|---|---|---|
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
| VMBSX | VGLT | Difference | |
|---|---|---|---|
Max DrawdownLargest 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 DrawdownCurrent decline from peak | -1.22% | -36.83% | +35.61% |
Average DrawdownAverage peak-to-trough decline | -2.48% | -15.06% | +12.58% |
Ulcer IndexDepth 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
| VMBSX | VGLT | Difference | |
|---|---|---|---|
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.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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.
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