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Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS)
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Upturn Advisory Summary
12/01/2025: 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 10.2% | Avg. Invested days 60 | 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 12/01/2025 |
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 market-weighted mortgage-backed securities index. It provides exposure to U.S. agency mortgage-backed pass-through certificates, offering a low-cost way to invest in the mortgage-backed securities market.
Reputation and Reliability
Vanguard is a highly reputable and reliable issuer known for its low-cost ETFs and strong investor focus.
Management Expertise
Vanguard has a well-established management team with extensive experience in managing fixed income investments.
Investment Objective
Goal
To track the performance of a market-weighted mortgage-backed securities index.
Investment Approach and Strategy
Strategy: VMBS aims to track the Bloomberg U.S. Mortgage Backed Securities (MBS) Index.
Composition The ETF primarily holds mortgage-backed securities issued by U.S. government agencies (e.g., Ginnie Mae, Fannie Mae, Freddie Mac).
Market Position
Market Share: VMBS holds a significant market share within the mortgage-backed securities ETF segment.
Total Net Assets (AUM): 15790000000
Competitors
Key Competitors
- iShares MBS ETF (MBB)
- SPDR Portfolio Aggregate Bond ETF (SPAB)
- Schwab U.S. Aggregate Bond ETF (SCHZ)
Competitive Landscape
The competitive landscape includes other MBS ETFs and broader bond ETFs. VMBS benefits from Vanguard's low-cost structure and strong brand recognition. Competitors may offer different index tracking or slightly varied exposures. Compared to competitors, VMBS offers a lower expense ratio, which allows it to stay competitive in the market and appeal to cost-sensitive investors.
Financial Performance
Historical Performance: Historical performance data can be obtained from financial data providers. Please see disclaimer at end of the document.
Benchmark Comparison: The ETF's performance can be compared to the Bloomberg U.S. Mortgage Backed Securities (MBS) Index. Please see disclaimer at end of the document.
Expense Ratio: 0.04
Liquidity
Average Trading Volume
VMBS generally exhibits good liquidity with a substantial average trading volume.
Bid-Ask Spread
The bid-ask spread for VMBS is typically tight, reflecting its high liquidity.
Market Dynamics
Market Environment Factors
Economic indicators such as interest rates, inflation, and housing market trends significantly affect VMBS. Changes in these factors can impact the value of mortgage-backed securities.
Growth Trajectory
The growth of VMBS is tied to the overall demand for mortgage-backed securities and the attractiveness of fixed income investments. Changes to housing market policies can also have a significant impact.
Moat and Competitive Advantages
Competitive Edge
VMBS benefits from Vanguard's established brand and low-cost leadership, attracting cost-conscious investors. Its large asset base provides economies of scale, which helps keep expense ratios low. The fund closely tracks the Bloomberg U.S. Mortgage Backed Securities (MBS) Index, providing consistent and predictable exposure to the MBS market. The efficiency of Vanguard's index tracking is a significant advantage. It offers a diverse portfolio of agency mortgage-backed securities, mitigating some credit risk.
Risk Analysis
Volatility
VMBS exhibits moderate volatility, typical for fixed income investments. Interest rate risk is a primary driver of volatility.
Market Risk
Market risk in VMBS primarily relates to changes in interest rates and prepayment risk. Rising interest rates can decrease the value of existing MBS, and faster prepayments can reduce the yield.
Investor Profile
Ideal Investor Profile
The ideal investor for VMBS is a risk-averse investor seeking stable income and diversification within the fixed income market. It is suitable for those who want exposure to mortgage-backed securities without the complexities of direct investment.
Market Risk
VMBS is best for long-term investors seeking passive index exposure to the mortgage-backed securities market.
Summary
VMBS offers a low-cost and efficient way to access the mortgage-backed securities market. It's managed by Vanguard, a reputable issuer known for its index tracking capabilities and low fees. It closely tracks the Bloomberg U.S. Mortgage Backed Securities (MBS) Index. Investors should consider potential risks such as interest rate risk and prepayment risk. VMBS is a suitable investment option for long-term investors seeking stable income and diversification within the fixed income market.
Similar ETFs
Sources and Disclaimers
Data Sources:
- Vanguard.com
- Bloomberg
- Morningstar
- etf.com
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered investment advice. Market share data and performance information are subject to change. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.
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.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.