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Upturn AI SWOT - About
Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS)
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Upturn Advisory Summary
08/29/2025: 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 7.49% | Avg. Invested days 49 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  4.0 | ETF Returns Performance  2.0 |
| Profits based on simulation | Last Close 08/29/2025 |
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 investment results of the Bloomberg U.S. Mortgage Backed Securities (MBS) Index. It primarily invests in U.S. agency mortgage-backed pass-through certificates, offering exposure to the U.S. residential mortgage market.
Reputation and Reliability
Vanguard is a well-established and reputable investment management company known for its low-cost index funds and ETFs.
Management Expertise
Vanguard has a highly experienced management team with a strong track record in managing fixed income funds.
Investment Objective
Goal
To track the performance of a broad, market-weighted index of investment-grade mortgage-backed securities.
Investment Approach and Strategy
Strategy: The ETF employs a passive management strategy, attempting to replicate the Bloomberg U.S. Mortgage Backed Securities Index.
Composition The ETF primarily holds mortgage-backed securities issued by U.S. government agencies and instrumentalities.
Market Position
Market Share: VMBS has a substantial market share within the mortgage-backed securities ETF category.
Total Net Assets (AUM): 16677404260
Competitors
Key Competitors
- iShares MBS ETF (MBB)
- SPDR Portfolio Mortgage Backed Securities ETF (SPMB)
Competitive Landscape
The MBS ETF market is dominated by a few key players. VMBS benefits from Vanguard's low-cost structure and strong brand reputation. MBB, from iShares, is a large and liquid competitor. Smaller players like SPMB compete primarily on price.
Financial Performance
Historical Performance: Historical performance data is not presented directly in this format.
Benchmark Comparison: Benchmark comparison is not presented directly in this format.
Expense Ratio: 0.04
Liquidity
Average Trading Volume
VMBS generally exhibits good liquidity, as indicated by its high average trading volume.
Bid-Ask Spread
VMBS typically has a tight bid-ask spread, reflecting the ease of trading the ETF.
Market Dynamics
Market Environment Factors
Interest rate movements, housing market trends, and government policy changes affecting mortgage-backed securities all influence the performance of VMBS.
Growth Trajectory
The growth of VMBS depends on investor demand for fixed income and mortgage-backed securities, as well as the overall size and health of the U.S. mortgage market.
Moat and Competitive Advantages
Competitive Edge
VMBS benefits from Vanguard's scale, low expense ratio, and brand recognition. It offers investors cost-effective exposure to a broad index of mortgage-backed securities. The fund's passive management strategy helps it maintain low turnover and minimize transaction costs. These factors contribute to its ability to track its benchmark efficiently and deliver competitive returns to investors. Vanguard's reputation for investor-friendly practices further enhances its appeal.
Risk Analysis
Volatility
VMBS's volatility is typically lower than equity ETFs, but it is sensitive to interest rate changes and prepayment risk.
Market Risk
The primary market risk associated with VMBS is interest rate risk. Rising interest rates can negatively impact the value of mortgage-backed securities. Additionally, prepayment risk, the risk that homeowners will refinance their mortgages when interest rates fall, can also affect the ETF's performance.
Investor Profile
Ideal Investor Profile
VMBS is suitable for investors seeking income and diversification through exposure to the mortgage-backed securities market. It is often used as a core holding in a fixed income portfolio.
Market Risk
VMBS is best for long-term investors seeking a passive, low-cost investment in mortgage-backed securities.
Summary
Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS) offers investors a low-cost, passive way to access the U.S. mortgage-backed securities market. It seeks to track the Bloomberg U.S. Mortgage Backed Securities Index and provides diversification benefits within a fixed income portfolio. VMBS is sensitive to interest rate risk and prepayment risk, making it suitable for long-term investors with a moderate risk tolerance. Its low expense ratio and strong track record contribute to its appeal as a core fixed income holding.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Vanguard
- Bloomberg
- Morningstar
Disclaimers:
This analysis is for informational purposes only and does not constitute investment advice. 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.
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