MBS vs VTI
MBS vs VTI
Angel Oak Mortgage-Backed Securities 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 | MBS | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.03% | |
| AUM | $148M | $663.5B | |
| Dividend Yield | 5.12% | 1.07% | |
| Holdings | 126 | 3,543 | |
| YTD Return | +0.32% | +13.39% | |
| 1Y Return | +3.89% | +23.21% | |
| 3Y Return (annualized) | - | +20.65% | |
| 5Y Return (annualized) | - | +12.18% | |
| Volatility (annualized) | 4.6% | 15.3% | |
| Max Drawdown | -4.1% | -56.6% | |
| Fund Family | Angel Oak Capital Advisors | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 20, 2024 | May 24, 2001 |
MBS vs VTI Performance
Angel Oak Mortgage-Backed Securities ETF (MBS) is a ETF from Angel Oak Capital Advisors and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year MBS returned +3.89% while VTI returned +23.21%. Year to date, MBS is up 0.32% versus a gain of 13.39% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.6% for MBS. 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 -4.1% for MBS 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBS charges 0.49% per year while VTI charges 0.03%. On a $10,000 position that is $49 vs $3 annually, a gap of $46 per year that compounds over a long holding period. On income, MBS currently yields 5.12% against 1.07% for VTI.
Holdings Overlap
MBS and VTI share 0 holdings out of 2801 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, MBS or VTI?
MBS has an expense ratio of 0.49% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, MBS or VTI?
Over the past year MBS returned +3.89% vs +23.21% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), MBS annualized +5.73% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, MBS or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 4.6% for MBS. Worst drawdown: MBS -4.1% vs VTI -56.6%.
Should I hold both MBS and VTI?
MBS and VTI have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBS and VTI?
MBS and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2801 unique securities.
Which pays a higher dividend, MBS or VTI?
MBS yields 5.12% while VTI yields 1.07%, so MBS currently pays the higher dividend yield.
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