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Upturn AI SWOT - About
Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS)
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Upturn Advisory Summary
10/17/2025: VMBS (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type ETF | Historic Profit 9.35% | Avg. Invested days 55 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  4.0 | ETF Returns Performance  3.0 |
| Profits based on simulation | Last Close 10/17/2025 |
Key Highlights
Volume (30-day avg) - | Beta 1.11 | 52 Weeks Range 43.28 - 46.52 | Updated Date 06/30/2025 |
52 Weeks Range 43.28 - 46.52 | Updated Date 06/30/2025 |
Upturn AI SWOT
Vanguard Mortgage-Backed Securities Index Fund ETF Shares
ETF Overview
Overview
The Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS) seeks to track the performance of a broad, market-weighted bond index that measures the investment return of mortgage-backed securities. It primarily invests in agency mortgage-backed pass-through securities issued by GNMA, Fannie Mae, and Freddie Mac. The fund employs a passive management strategy, attempting to replicate the Bloomberg U.S. Mortgage Backed Securities Index.
Reputation and Reliability
Vanguard is one of the world's largest investment management companies, known for its low-cost, investor-owned structure and commitment to long-term investing.
Management Expertise
Vanguard has a highly experienced team of investment professionals specializing in fixed income and passive investment strategies.
Investment Objective
Goal
To track the performance of the Bloomberg U.S. Mortgage Backed Securities Index.
Investment Approach and Strategy
Strategy: The ETF aims to replicate the Bloomberg U.S. Mortgage Backed Securities Index, a market-weighted index of investment-grade mortgage-backed pass-through securities.
Composition The ETF primarily holds mortgage-backed securities issued by U.S. agencies like GNMA, Fannie Mae, and Freddie Mac.
Market Position
Market Share: VMBS is a major player in the mortgage-backed securities ETF market, holding a significant portion of the assets under management.
Total Net Assets (AUM): 17700000000
Competitors
Key Competitors
- iShares MBS ETF (MBB)
- SPDR Portfolio Mortgage Backed Securities ETF (SPMB)
Competitive Landscape
The mortgage-backed securities ETF market is moderately competitive. VMBS benefits from Vanguard's low-cost structure and strong brand recognition. Competitors like MBB offer similar exposure, while SPMB focuses on providing the lowest costs.
Financial Performance
Historical Performance: Historical performance reflects the returns of the Bloomberg U.S. Mortgage Backed Securities Index. Returns are influenced by interest rate changes, credit spreads, and mortgage prepayment rates.
Benchmark Comparison: The ETF's performance closely tracks the Bloomberg U.S. Mortgage Backed Securities Index, with minor deviations due to expenses and tracking error.
Expense Ratio: 0.04
Liquidity
Average Trading Volume
VMBS typically exhibits high average trading volume, facilitating easy entry and exit for investors.
Bid-Ask Spread
The bid-ask spread for VMBS is generally tight, reflecting its high liquidity and efficient trading.
Market Dynamics
Market Environment Factors
VMBS performance is influenced by factors like interest rate movements, inflation expectations, mortgage rates, and government housing policies.
Growth Trajectory
VMBS's growth is tied to the overall growth of the mortgage-backed securities market and investor demand for fixed-income exposure.
Moat and Competitive Advantages
Competitive Edge
VMBS benefits from Vanguard's low-cost structure, strong brand reputation, and efficient index tracking. The fund's large asset base allows for lower trading costs and tighter tracking error. Furthermore, Vanguard's investor-owned structure aligns its interests with those of its shareholders, fostering long-term investment strategies. This is coupled with Vanguard's reputation for consistent, reliable performance in index tracking.
Risk Analysis
Volatility
VMBS exhibits moderate volatility, primarily driven by interest rate sensitivity and mortgage prepayment risk.
Market Risk
VMBS is subject to market risk, including interest rate risk, credit risk (though minimal due to the agency backing of the securities), and prepayment risk (the risk that homeowners will refinance their mortgages when interest rates fall).
Investor Profile
Ideal Investor Profile
VMBS is suitable for investors seeking diversified exposure to the U.S. mortgage-backed securities market, looking for relatively safe and stable income generation.
Market Risk
VMBS is well-suited for long-term investors seeking a passive, low-cost investment in mortgage-backed securities.
Summary
The Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS) provides broad exposure to the U.S. mortgage-backed securities market. Its low expense ratio and efficient index tracking make it a compelling choice for investors seeking passive fixed-income exposure. Performance is driven by interest rate movements and mortgage prepayment rates. The ETF is a suitable option for long-term investors seeking stable income with a diversified portfolio. VMBS's strengths are derived from Vanguard's reputation and low costs.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Vanguard Official Website
- Bloomberg
- Morningstar
- ETF.com
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be made based on individual circumstances and consultation with a financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Vanguard Mortgage-Backed Securities Index Fund ETF Shares
Exchange NASDAQ | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The fund employs an indexing investment approach designed to track the performance of the Bloomberg U.S. MBS Float Adjusted Index. This index covers U.S. agency mortgage-backed pass-through securities issued by the GNMA, the FNMA, and the FHLMC. To be included in the index, pool aggregates must have at least $1 billion currently outstanding and a weighted average maturity of at least 1 year. All of the fund's investments will be selected through the sampling process, and at least 80% of the fund's assets will be invested in bonds included in the index.
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