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Upturn AI SWOT - About
Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS)
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Upturn Advisory Summary
07/03/2025: 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 4.95% | Avg. Invested days 43 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  4.0 | ETF Returns Performance  1.0 |
| Profits based on simulation | Last Close 07/03/2025 |
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 U.S. dollar-denominated, fixed-rate, investment-grade mortgage-backed securities.
Reputation and Reliability
Vanguard is a highly reputable and reliable issuer, known for its low-cost index funds and ETFs.
Management Expertise
Vanguard has extensive expertise in managing fixed-income funds, with a large team of experienced portfolio managers and analysts.
Investment Objective
Goal
To track the performance of a broad, market-weighted bond index that measures the investment return of U.S. dollar-denominated, fixed-rate, investment-grade mortgage-backed securities.
Investment Approach and Strategy
Strategy: The fund employs a passive management strategy, attempting to replicate the performance of the Bloomberg U.S. Mortgage Backed Securities (MBS) Index.
Composition The ETF holds a diversified portfolio of mortgage-backed securities issued by U.S. government agencies and government-sponsored enterprises.
Market Position
Market Share: VMBS holds a significant market share within the mortgage-backed securities ETF segment.
Total Net Assets (AUM): 15600000000
Competitors
Key Competitors
- iShares MBS ETF (MBB)
- SPDR Portfolio Mortgage Backed Bond ETF (SPMB)
- Schwab U.S. TIPS ETF (SCHP)
Competitive Landscape
The mortgage-backed securities ETF market is dominated by a few large players. VMBS's advantages include its low expense ratio and Vanguard's strong reputation. Disadvantages might include slightly lower trading volume compared to MBB.
Financial Performance
Historical Performance: Historical performance can be found on Vanguard's official website, updated frequently.
Benchmark Comparison: The ETF aims to closely track the Bloomberg U.S. Mortgage Backed Securities Index, so its performance should closely align with the index.
Expense Ratio: 0.04
Liquidity
Average Trading Volume
VMBS exhibits good liquidity with an average trading volume that allows for easy buying and selling.
Bid-Ask Spread
VMBS generally has a tight bid-ask spread, resulting in low trading costs.
Market Dynamics
Market Environment Factors
Economic factors such as interest rates, inflation, and housing market conditions significantly impact VMBS's performance.
Growth Trajectory
The ETF's growth is closely tied to the overall size and health of the mortgage-backed securities market; changes in Federal Reserve policy also have significant effect.
Moat and Competitive Advantages
Competitive Edge
VMBS benefits from Vanguard's economies of scale, allowing for a very low expense ratio, which is a key competitive advantage. The ETF also has a strong reputation for accurately tracking its underlying index. Vanguardu2019s brand recognition and trust in their low-cost approach attract a large investor base. This gives it a competitive edge over other ETFs with higher fees or less brand recognition within the fixed income investment community.
Risk Analysis
Volatility
VMBS's volatility is generally lower than equity ETFs but can be affected by interest rate fluctuations.
Market Risk
The main risk is interest rate risk; rising rates can cause the value of mortgage-backed securities to decline.
Investor Profile
Ideal Investor Profile
The ideal investor is one seeking exposure to the U.S. mortgage-backed securities market with a low-cost, diversified approach.
Market Risk
VMBS is suitable for long-term investors and passive index followers seeking income and stability.
Summary
Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS) offers a low-cost and efficient way to invest in the U.S. mortgage-backed securities market. Its passive management strategy aims to track the Bloomberg U.S. Mortgage Backed Securities Index closely. The ETF is best suited for long-term investors seeking income and diversification. With its low expense ratio and Vanguard's strong reputation, VMBS presents a compelling option for fixed-income investors looking for exposure to mortgage-backed securities.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Vanguard Official Website
- Bloomberg
- Morningstar
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on your own research 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.
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.