Vanguard Mortgage-Backed Securities ETF (VMBS) Performance
VMBS total return
Distributions reinvested · as of Oct 23, 2026- YTD
- −0.8% since Dec 31, 2025
- 1 year
- −0.2% total return
- 5 years
- +0.3% a year
- 10 years
- +1.1% a year
- Since first price
- +1.9% a year since 2009
VMBS trailing returns vs AGG, TLT, SPY
| Period | VMBS total return | Price only | U.S. bonds (AGG) | 20+ yr Treasuries (TLT) | S&P 500 (SPY) |
|---|---|---|---|---|---|
| 1 month | +1.1% | +0.7% | +0.9% | +1.5% | −1.0% |
| 3 months | −0.7% | −1.8% | −0.4% | −1.0% | +3.2% |
| 6 months | −1.7% | −3.7% | −1.5% | −3.8% | +7.8% |
| YTD | −0.8% | −3.9% | −1.0% | −3.4% | +12.3% |
| 1 year | −0.2% | −4.3% | −1.1% | −6.9% | +14.4% |
| 3 years | +20.3%+6.3%/yr | +6.3% | +16.6%+5.2%/yr | +9.7%+3.1%/yr | +87.4%+23.3%/yr |
| 5 years | +1.4%+0.3%/yr | −14.7% | −0.8%−0.2%/yr | −32.5%−7.6%/yr | +79.3%+12.4%/yr |
| 10 years | +11.4%+1.1%/yr | −15.9% | +14.0%+1.3%/yr | −18.7%−2.0%/yr | +315.9%+15.3%/yr |
| 15 years | +26.9%+1.6%/yr | −12.5% | +32.2%+1.9%/yr | +9.9%+0.6%/yr | +696.0%+14.8%/yr |
| Since inceptionNov 23, 2009 | +38.5%+1.9%/yr | −9.8% | — | — | — |
Total return from adjusted closes (distributions reinvested, before tax). Periods of 3 years or more are also shown annualized. Price only excludes distributions.
Growth of $10,000: VMBS vs AGG
From Nov 23, 2009: VMBS grew to $13,848, AGG to $14,721.
Year-end values with distributions reinvested, no taxes or trading costs. Start: first common trading day of both funds.
VMBS returns by calendar year
13 of 16 full years positive. Best 2025 (+8.4%), worst 2022 (−11.9%). 2026 is year to date.
VMBS annual returns table
| Year | VMBS | Largest drop | AGG | TLT | SPY |
|---|---|---|---|---|---|
| 2026YTD | −0.8% | −5.1% | −1.0% | −3.4% | +12.3% |
| 2025 | +8.4% | −3.0% | +7.2% | +4.3% | +17.7% |
| 2024 | +1.7% | −4.0% | +1.3% | −8.1% | +24.9% |
| 2023 | +5.3% | −8.8% | +5.7% | +2.8% | +26.2% |
| 2022 | −11.9% | −16.0% | −13.0% | −31.2% | −18.2% |
| 2021 | −1.3% | −1.9% | −1.8% | −4.6% | +28.7% |
| 2020 | +3.5% | −5.1% | +7.5% | +18.2% | +18.3% |
| 2019 | +6.2% | −0.7% | +8.5% | +14.1% | +31.2% |
| 2018 | +0.9% | −2.2% | +0.1% | −1.6% | −4.6% |
| 2017 | +2.5% | −1.4% | +3.6% | +9.2% | +21.7% |
| 2016 | +1.3% | −3.3% | +2.4% | +1.2% | +12.0% |
| 2015 | +1.6% | −1.5% | +0.5% | −1.8% | +1.2% |
| 2014 | +5.9% | −0.8% | +6.0% | +27.3% | +13.5% |
| 2013 | −1.3% | −3.8% | −2.0% | −13.4% | +32.3% |
| 2012 | +2.3% | −1.0% | +3.8% | +2.6% | +16.0% |
| 2011 | +6.0% | −1.4% | +7.7% | +34.0% | +1.9% |
| 2010 | +5.4% | −5.3% | +6.4% | +9.0% | +15.1% |
Largest drop = deepest fall from a high within that calendar year.
Calendar-year return vs largest drop within the year
Most years include a sizable fall at some point even when the year ends higher.
VMBS largest drawdowns
Now 2.8% below the high| Peak | Decline | Bottom | Recovered | Fall | Underwater |
|---|---|---|---|---|---|
| Aug 10, 2020 | −17.5% | Oct 20, 2022 | Oct 16, 2025 | 2.2 years | 5.2 years |
| May 6, 2010 | −5.3% | May 10, 2010 | May 20, 2011 | 4 days | 1.0 years |
| Feb 27, 2026 | −5.1% | Oct 5, 2026 | not yet | 7 months | 8 months so far |
| Mar 9, 2020 | −5.1% | Mar 18, 2020 | Mar 27, 2020 | 9 days | 18 days |
Declines from a closing high (distributions reinvested) of 5% or more. Underwater = time from the peak until the old high was regained.
VMBS risk statistics
| Statistic | 3 years | 5 years | 10 years | Since 2009 |
|---|---|---|---|---|
| Annualized return | +4.7% | −0.3% | +0.9% | +1.8% |
| Volatility (annualized) | 6.3% | 7.1% | 5.2% | 4.2% |
| Sharpe ratio | 0.06 | -0.52 | -0.25 | 0.13 |
| Sortino ratio | 0.09 | -0.66 | -0.33 | 0.17 |
| Best month | +5.3% | +5.3% | +5.3% | +5.3% |
| Worst month | −3.4% | −5.0% | −5.0% | −5.0% |
| Best 12 months | +12.1% | +12.1% | +12.1% | +12.1% |
| Worst 12 months | −1.4% | −15.0% | −15.0% | −15.0% |
| Positive months | 67% | 50% | 55% | 60% |
| Beta vs S&P 500 | 0.26 | 0.28 | 0.13 | — |
| Correlation with S&P 500 | 0.50 | 0.62 | 0.39 | — |
From monthly total returns. Sharpe and Sortino use 1–3 month T-bills (BIL) as the risk-free rate, so they need history from 2007 on.
VMBS rolling returns
| Holding period | Periods | Worst | Median | Best | Positive |
|---|---|---|---|---|---|
| 1-year | 192 | −15.0% | +2.6% | +12.1% | 73% |
| 3-year (a year) | 168 | −5.8% | +2.3% | +6.2% | 79% |
| 5-year (a year) | 144 | −1.4% | +2.0% | +3.6% | 76% |
| 10-year (a year) | 84 | +0.2% | +1.3% | +3.2% | 100% |
Every holding period starting at a month-end since 2009. Returns for 3 years and longer are annualized.
VMBS performance overview
Vanguard Mortgage-Backed Securities ETF (VMBS) returned −0.2% over the past year and +1.1% a year over ten years, with distributions reinvested. Since its first recorded price in 2009 it has returned +1.9% a year, turning $10,000 into about $13,848. Over the same year U.S. bonds (AGG) returned −1.1%.
The deepest decline was −17.5%, from Aug 10, 2020 to Oct 20, 2022, and it took 3.0 years to get back to the old high. VMBS finished 13 of its 16 full calendar years with a gain; the best year was 2025 (+8.4%) and the worst 2022 (−11.9%). Volatility has been 4.2% a year.
Related: VMBS chart, VMBS dividends, VMBS bond profile. See the VMBS overview for the latest quote and fund facts.
VMBS performance FAQ
What is the VMBS return over the past year?
VMBS returned −0.2% over the 12 months to October 23, 2026, including reinvested distributions. On price alone it fell 4.3%.
What is the average annual return of VMBS?
VMBS has returned +0.3% a year over 5 years, +1.1% a year over 10 years, +1.9% a year since November 23, 2009 (total return, distributions reinvested).
How much would $10,000 invested in VMBS be worth?
$10,000 invested in VMBS at its first recorded close on November 23, 2009 would be worth about $13,848 on October 23, 2026 with distributions reinvested.
What was the worst year for VMBS?
The worst calendar year was 2022, with a total return of −11.9%. The best was 2025 at +8.4%.
What is the biggest drawdown of VMBS?
The largest peak-to-trough decline was −17.5% between August 10, 2020 and October 20, 2022. It recovered to the old high on October 16, 2025, 3.0 years after the bottom.
How volatile is VMBS?
Over the past 3 years VMBS had an annualized volatility of 6.3% and a Sharpe ratio of 0.06 (excess return over 1–3 month T-bills per unit of risk).