VTV vs. VMBS
VTV (Vanguard Value ETF) and VMBS (Vanguard Mortgage-Backed Securities ETF) are both exchange-traded funds - VTV is a Large Cap Value Equities fund tracking the CRSP US Large Cap Value Index, while VMBS is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index. Both are passively managed. Over the past 10 years, VTV returned 12.42%/yr vs 1.31%/yr for VMBS. At a correlation of -0.05, they often move in opposite directions. Both charge a 0.04% expense ratio.
Performance
VTV vs. VMBS - Performance Comparison
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Returns By Period
In the year-to-date period, VTV achieves a 11.91% return, which is significantly higher than VMBS's 0.27% return. Over the past 10 years, VTV has outperformed VMBS with an annualized return of 12.42%, while VMBS has yielded a comparatively lower 1.31% annualized return.
VTV
- 1D
- 0.25%
- 1M
- 2.67%
- YTD
- 11.91%
- 6M
- 13.41%
- 1Y
- 25.49%
- 3Y*
- 17.72%
- 5Y*
- 11.30%
- 10Y*
- 12.42%
VMBS
- 1D
- 0.04%
- 1M
- -0.83%
- YTD
- 0.27%
- 6M
- 0.91%
- 1Y
- 6.83%
- 3Y*
- 4.37%
- 5Y*
- 0.40%
- 10Y*
- 1.31%
VTV vs. VMBS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTV Vanguard Value ETF | 11.91% | 15.27% | 15.95% | 9.32% | -2.09% | 26.53% | 2.33% | 25.66% | -5.47% | 17.15% |
VMBS Vanguard Mortgage-Backed Securities ETF | 0.27% | 8.36% | 1.70% | 5.34% | -11.90% | -1.28% | 3.76% | 6.19% | 0.91% | 2.47% |
Correlation
The correlation between VTV and VMBS is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.31 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.24 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.17 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.04 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | -0.05 |
The correlation between VTV and VMBS shifts across timeframes, from -0.05 (all time) to 0.31 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VTV vs. VMBS — Risk / Return Rank
VTV
VMBS
VTV vs. VMBS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Value ETF (VTV) and Vanguard Mortgage-Backed Securities ETF (VMBS). 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.
| VTV | VMBS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.92 | ||
| Sortino ratioReturn per unit of downside risk | +1.20 | ||
| Omega ratioGain probability vs. loss probability | 1.45 | 1.29 | +0.16 |
| Calmar ratioReturn relative to maximum drawdown | 4.03 | 2.55 | +1.48 |
| Martin ratioReturn relative to average drawdown | 15.20 | 8.40 | +6.80 |
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
| VTV | VMBS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.52 | 1.60 | +0.92 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.82 | 0.06 | +0.76 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.75 | 0.24 | +0.50 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.51 | 0.45 | +0.06 |
Drawdowns
VTV vs. VMBS - Drawdown Comparison
The maximum VTV drawdown since its inception was -59.27%, which is greater than VMBS's maximum drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for VTV and VMBS.
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Drawdown Indicators
| VTV | VMBS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.27% | -17.47% | -41.80% |
Max Drawdown (1Y)Largest decline over 1 year | -6.35% | -2.68% | -3.67% |
Max Drawdown (3Y)Largest decline over 3 years | -14.52% | -7.65% | -6.87% |
Max Drawdown (5Y)Largest decline over 5 years | -17.04% | -17.12% | +0.08% |
Max Drawdown (10Y)Largest decline over 10 years | -36.78% | -17.47% | -19.31% |
Current DrawdownCurrent decline from peak | -1.11% | -1.71% | +0.60% |
Average DrawdownAverage peak-to-trough decline | -7.87% | -2.49% | -5.38% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.68% | 0.81% | +0.87% |
Volatility
VTV vs. VMBS - Volatility Comparison
Vanguard Value ETF (VTV) has a higher volatility of 2.65% compared to Vanguard Mortgage-Backed Securities ETF (VMBS) at 1.56%. This indicates that VTV's price experiences larger fluctuations and is considered to be riskier than VMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTV | VMBS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.65% | 1.56% | +1.09% |
Volatility (6M)Calculated over the trailing 6-month period | 7.67% | 3.19% | +4.48% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.18% | 4.29% | +5.89% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.89% | 6.77% | +7.12% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.68% | 5.40% | +11.28% |
VTV vs. VMBS - Expense Ratio Comparison
Both VTV and VMBS have an expense ratio of 0.04%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VTV vs. VMBS - Dividend Comparison
VTV's dividend yield for the trailing twelve months is around 1.87%, less than VMBS's 4.20% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VMBS Vanguard Mortgage-Backed Securities ETF | 4.20% | 4.20% | 3.94% | 3.31% | 2.35% | 1.02% | 2.01% | 2.77% | 2.72% | 2.16% | 2.10% | 2.12% |
VTV Vanguard Value ETF | 1.87% | 2.05% | 2.31% | 2.46% | 2.52% | 2.15% | 2.56% | 2.50% | 2.73% | 2.29% | 2.44% | 2.60% |
Frequently Asked Questions
VTV and VMBS have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTV has higher volatility (2.65%) compared to VMBS (1.56%). In terms of maximum drawdown, VTV dropped -59.27% vs VMBS's -17.47%.
On 10-year performance, VTV leads with 12.42% vs 1.31% for VMBS. Both ETFs have the same 0.04% expense ratio. On volatility, VMBS has been the lower-risk option at 1.56%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VTV has performed better with a 12.42% return vs 1.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTV and VMBS have the same expense ratio: 0.04% per year.
VMBS has the higher dividend yield at 4.20%, compared with 1.87% for VTV.
VTV is categorized as Large Cap Value Equities, while VMBS is Mortgage Backed Securities. VTV tracks CRSP US Large Cap Value Index, while VMBS tracks Barclays Capital U.S. MBS Index.
VTV currently has the higher Sharpe Ratio (2.52 vs 1.60), 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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