MBSD vs VTI
MBSD vs VTI
FlexShares Disciplined Duration MBS Index Fund 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 | MBSD | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.03% | |
| AUM | $89M | $663.5B | |
| Dividend Yield | 4.19% | 1.07% | |
| Holdings | 482 | 3,543 | |
| YTD Return | +0.15% | +13.57% | |
| 1Y Return | +2.72% | +24.23% | |
| 3Y Return (annualized) | +4.37% | +20.73% | |
| 5Y Return (annualized) | +0.51% | +12.24% | |
| Volatility (annualized) | 3.5% | 15.3% | |
| Max Drawdown | -18.0% | -56.6% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 3, 2014 | May 24, 2001 |
MBSD vs VTI Performance
FlexShares Disciplined Duration MBS Index Fund (MBSD) is a ETF from Flexshares Trust and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year MBSD returned +2.72% while VTI returned +24.23%. Year to date, MBSD is up 0.15% versus a gain of 13.57% for VTI.
Over three years, MBSD compounded at +4.37% per year against +20.73% for VTI; over five years the annualized figures are +0.51% and +12.24% respectively. Across the full 12-year window we track, VTI has the edge at +8.12% annualized vs -0.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.5% for MBSD. 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 -18.0% for MBSD 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBSD charges 0.20% per year while VTI charges 0.03%. On a $10,000 position that is $20 vs $3 annually, a gap of $17 per year that compounds over a long holding period. On income, MBSD currently yields 4.19% against 1.07% for VTI.
Holdings Overlap
MBSD and VTI share 0 holdings out of 3245 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, MBSD or VTI?
MBSD has an expense ratio of 0.20% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, MBSD or VTI?
Over the past year MBSD returned +2.72% vs +24.23% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (12 years), MBSD annualized -0.08% vs +8.12% for VTI. Past performance does not guarantee future results.
Which is riskier, MBSD or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 3.5% for MBSD. Worst drawdown: MBSD -18.0% vs VTI -56.6%.
Should I hold both MBSD and VTI?
MBSD and VTI have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBSD and VTI?
MBSD and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3245 unique securities.
Which pays a higher dividend, MBSD or VTI?
MBSD yields 4.19% while VTI yields 1.07%, so MBSD currently pays the higher dividend yield.
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