VMBS vs VXUS
VMBS vs VXUS
Vanguard Mortgage-Backed Securities ETF vs Vanguard Total International Stock ETF
Quick Verdict
VMBS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.
Side-by-Side Comparison
| Metric | VMBS | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $15.6B | $156.5B | |
| Dividend Yield | 4.15% | 2.60% | |
| Holdings | 5,043 | 8,747 | |
| YTD Return | +0.34% | +13.65% | |
| 1Y Return | +3.54% | +28.53% | |
| 3Y Return (annualized) | +4.74% | +18.64% | |
| 5Y Return (annualized) | +0.31% | +9.00% | |
| Volatility (annualized) | 4.2% | 15.1% | |
| Max Drawdown | -18.4% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Jan 26, 2011 |
VMBS vs VXUS Performance
Vanguard Mortgage-Backed Securities ETF (VMBS) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VMBS returned +3.54% while VXUS returned +28.53%. Year to date, VMBS is up 0.34% versus a gain of 13.65% for VXUS.
Over three years, VMBS compounded at +4.74% per year against +18.64% for VXUS; over five years the annualized figures are +0.31% and +9.00% respectively. Across the full 16-year window we track, VXUS has the edge at +4.81% annualized vs +0.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 4.2% for VMBS. 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 VMBS 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VMBS charges 0.03% per year while VXUS charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, VMBS currently yields 4.15% against 2.60% for VXUS.
Holdings Overlap
VMBS and VXUS share 0 holdings out of 12548 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, VMBS or VXUS?
VMBS has an expense ratio of 0.03% while VXUS charges 0.05%. VMBS is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VMBS or VXUS?
Over the past year VMBS returned +3.54% vs +28.53% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VMBS annualized +0.51% vs +4.81% for VXUS. Past performance does not guarantee future results.
Which is riskier, VMBS or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 4.2% for VMBS. Worst drawdown: VMBS -18.4% vs VXUS -39.9%.
Should I hold both VMBS and VXUS?
VMBS and VXUS have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VMBS and VXUS?
VMBS and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 12548 unique securities.
Which pays a higher dividend, VMBS or VXUS?
VMBS yields 4.15% while VXUS yields 2.60%, so VMBS currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.