MBS vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricMBSVXUSWinner
Expense Ratio0.49%0.05%
AUM$148M$156.5B
Dividend Yield5.12%2.60%
Holdings1268,747
YTD Return+0.32%+14.57%
1Y Return+3.95%+27.82%
3Y Return (annualized)-+19.27%
5Y Return (annualized)-+9.28%
Volatility (annualized)4.6%15.1%
Max Drawdown-4.1%-39.9%
Fund FamilyAngel Oak Capital AdvisorsVanguard (US)
CategoryFixed IncomeEquity
InceptionFeb 20, 2024Jan 26, 2011

MBS vs VXUS Performance

Angel Oak Mortgage-Backed Securities ETF (MBS) is a ETF from Angel Oak Capital Advisors and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year MBS returned +3.95% while VXUS returned +27.82%. Year to date, MBS is up 0.32% versus a gain of 14.57% for VXUS.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MBS charges 0.49% per year while VXUS charges 0.05%. On a $10,000 position that is $49 vs $5 annually, a gap of $44 per year that compounds over a long holding period. On income, MBS currently yields 5.12% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

MBS and VXUS share 0 holdings out of 7879 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 VXUS?

MBS has an expense ratio of 0.49% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $44 per year of difference.

Which performed better, MBS or VXUS?

Over the past year MBS returned +3.95% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), MBS annualized +5.73% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, MBS or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 4.6% for MBS. Worst drawdown: MBS -4.1% vs VXUS -39.9%.

Should I hold both MBS and VXUS?

MBS and VXUS have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MBS and VXUS?

MBS and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7879 unique securities.

Which pays a higher dividend, MBS or VXUS?

MBS yields 5.12% while VXUS yields 2.60%, so MBS currently pays the higher dividend yield.

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