MBB vs VTI
MBB vs VTI
iShares MBS ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | MBB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.03% | |
| AUM | $39.1B | $663.5B | |
| Dividend Yield | 4.26% | 1.07% | |
| Holdings | 11,178 | 3,543 | |
| YTD Return | -0.26% | +10.14% | |
| 1Y Return | +4.17% | +19.82% | |
| 3Y Return (annualized) | +4.35% | +18.94% | |
| 5Y Return (annualized) | +0.06% | +11.79% | |
| Volatility (annualized) | 4.3% | 15.4% | |
| Max Drawdown | -18.4% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 13, 2007 | May 24, 2001 |
MBB vs VTI Performance
iShares MBS ETF (MBB) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year MBB returned +4.17% while VTI returned +19.82%. Year to date, MBB is down 0.26% versus a gain of 10.14% for VTI.
Over three years, MBB compounded at +4.35% per year against +18.94% for VTI; over five years the annualized figures are +0.06% and +11.79% respectively. Across the full 19-year window we track, VTI has the edge at +7.99% annualized vs +0.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 4.3% for MBB. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -18.4% for MBB and -56.6% for VTI. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBB charges 0.04% per year while VTI charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, MBB currently yields 4.26% against 1.07% for VTI.
Holdings Overlap
MBB and VTI share 0 holdings out of 5122 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MBB or VTI?
MBB has an expense ratio of 0.04% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, MBB or VTI?
Over the past year MBB returned +4.17% vs +19.82% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), MBB annualized +0.45% vs +7.99% for VTI. Past performance does not guarantee future results.
Which is riskier, MBB or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 4.3% for MBB. Worst drawdown: MBB -18.4% vs VTI -56.6%.
Should I hold both MBB and VTI?
MBB and VTI have a monthly-return correlation of 0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBB and VTI?
MBB and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 5122 unique securities.
Which pays a higher dividend, MBB or VTI?
MBB yields 4.26% while VTI yields 1.07%, so MBB currently pays the higher dividend yield.
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