VPLS vs. MBS

Last updated Jun 4, 2026

VPLS (Vanguard Core-Plus Bond ETF) and MBS (Angel Oak Mortgage-Backed Securities ETF) are both Intermediate Core-Plus Bond funds. Both are actively managed. Over the past year, VPLS returned 5.91% vs 6.88% for MBS. A 0.67 correlation means they provide meaningful diversification when combined. VPLS charges 0.20%/yr vs 0.49%/yr for MBS.

Performance

VPLS vs. MBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Core-Plus Bond ETF (VPLS) and Angel Oak Mortgage-Backed Securities ETF (MBS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with VPLS having a 0.64% return and MBS slightly lower at 0.62%.

VPLS

• 1D: -0.21%
• 1M: 0.35%
• YTD: 0.64%
• 6M: 0.57%
• 1Y: 5.91%
• 3Y*: —
• 5Y*: —
• 10Y*: —

MBS

• 1D: -0.29%
• 1M: -0.22%
• YTD: 0.62%
• 6M: 0.84%
• 1Y: 6.88%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VPLS vs. MBS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VPLS Vanguard Core-Plus Bond ETF	0.64%	7.86%	4.07%
MBS Angel Oak Mortgage-Backed Securities ETF	0.62%	8.13%	5.78%

Correlation

The correlation between VPLS and MBS is 0.64, 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	0.64
Correlation (All Time) Calculated using the full available price history since Feb 21, 2024	0.67

The correlation between VPLS and MBS has been stable across timeframes, ranging from 0.64 to 0.67 - a consistent structural relationship.

Return for Risk

VPLS vs. MBS — Risk / Return Rank

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

VPLS

VPLS Risk / Return Rank: 45
VPLS Sharpe Ratio Rank: 46
VPLS Sortino Ratio Rank: 49
VPLS Omega Ratio Rank: 45
VPLS Calmar Ratio Rank: 43
VPLS Martin Ratio Rank: 43

MBS

MBS Risk / Return Rank: 69
MBS Sharpe Ratio Rank: 72
MBS Sortino Ratio Rank: 79
MBS Omega Ratio Rank: 75
MBS Calmar Ratio Rank: 64
MBS Martin Ratio Rank: 57

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.

VPLS vs. MBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Core-Plus Bond ETF (VPLS) and Angel Oak Mortgage-Backed Securities ETF (MBS). 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.

	VPLS	MBS	Difference
Sharpe ratio: Return per unit of total volatility	1.63	2.36	-0.73
Sortino ratio: Return per unit of downside risk	2.42	3.54	-1.12
Omega ratio: Gain probability vs. loss probability	1.29	1.45	-0.16
Calmar ratio: Return relative to maximum drawdown	2.18	3.14	-0.96
Martin ratio: Return relative to average drawdown	7.10	9.89	-2.79
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VPLS vs. MBS - Sharpe Ratio Comparison

The current VPLS Sharpe Ratio is 1.63, which is lower than the MBS Sharpe Ratio of 2.36. The chart below compares the historical Sharpe Ratios of VPLS and MBS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VPLS	MBS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.63	2.36	-0.73
Sharpe Ratio (All Time) Calculated using the full available price history	1.24	1.60	-0.36

Drawdowns

VPLS vs. MBS - Drawdown Comparison

The maximum VPLS drawdown since its inception was -4.17%, roughly equal to the maximum MBS drawdown of -4.09%. Use the drawdown chart below to compare losses from any high point for VPLS and MBS.

Drawdown Indicators

	VPLS	MBS	Difference
Max Drawdown Largest peak-to-trough decline	-4.17%	-4.09%	-0.08%
Max Drawdown (1Y) Largest decline over 1 year	-2.72%	-2.20%	-0.52%
Current Drawdown Current decline from peak	-1.21%	-1.46%	+0.25%
Average Drawdown Average peak-to-trough decline	-1.01%	-1.02%	+0.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.83%	0.70%	+0.13%

Volatility

VPLS vs. MBS - Volatility Comparison

Vanguard Core-Plus Bond ETF (VPLS) has a higher volatility of 1.27% compared to Angel Oak Mortgage-Backed Securities ETF (MBS) at 0.90%. This indicates that VPLS's price experiences larger fluctuations and is considered to be riskier than MBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VPLS	MBS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.27%	0.90%	+0.37%
Volatility (6M) Calculated over the trailing 6-month period	2.69%	2.00%	+0.69%
Volatility (1Y) Calculated over the trailing 1-year period	3.65%	2.93%	+0.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.61%	3.99%	+0.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.61%	3.99%	+0.62%

VPLS vs. MBS - Expense Ratio Comparison

VPLS has a 0.20% expense ratio, which is lower than MBS's 0.49% expense ratio.

Dividends

VPLS vs. MBS - Dividend Comparison

VPLS's dividend yield for the trailing twelve months is around 4.76%, less than MBS's 5.61% yield.

Position	TTM	2025	2024	2023
MBS Angel Oak Mortgage-Backed Securities ETF	5.61%	5.28%	4.52%	0.00%
VPLS Vanguard Core-Plus Bond ETF	4.76%	4.78%	4.52%	0.18%

Frequently Asked Questions

Can I hold both VPLS and MBS in my portfolio?

VPLS and MBS have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VPLS or MBS?

VPLS has higher volatility (1.27%) compared to MBS (0.90%). In terms of maximum drawdown, VPLS dropped -4.17% vs MBS's -4.09%.

Which ETF is better, VPLS or MBS?

On 1-year performance, MBS leads with 6.88% vs 5.91% for VPLS. On fees, VPLS is cheaper at 0.20% per year. On volatility, MBS has been the lower-risk option at 0.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VPLS or MBS?

Over the 1-year period, MBS has performed better with a 6.88% return vs 5.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VPLS or MBS?

VPLS is cheaper with a 0.20% expense ratio, compared with 0.49% for MBS.

Which ETF pays a higher dividend yield, VPLS or MBS?

MBS has the higher dividend yield at 5.61%, compared with 4.76% for VPLS.

What is the main difference between VPLS and MBS?

They also come from different issuers: Vanguard and Angel Oak. Their fees differ too: 0.20% for VPLS and 0.49% for MBS.

Which has better risk-adjusted returns?

MBS currently has the higher Sharpe Ratio (2.36 vs 1.63), 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.