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Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS)
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Upturn Advisory Summary
01/17/2025: VMBS (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type ETF | Historic Profit 3.34% | Avg. Invested days 47 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | ETF Returns Performance  1.0 |
| Profits based on simulation | Last Close 01/17/2025 |
Key Highlights
Volume (30-day avg) 2274856 | Beta 1.09 | 52 Weeks Range 42.76 - 46.97 | Updated Date 01/22/2025 |
52 Weeks Range 42.76 - 46.97 | Updated Date 01/22/2025 |
AI Summary
Summary of Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS)
Profile: VMBS is an ETF that tracks the performance of the Bloomberg U.S. Mortgage-Backed Securities (MBS) Index. This means it invests in a broad range of U.S. agency mortgage-backed securities, with exposure to both fixed-rate and adjustable-rate mortgages across various maturities. VMBS offers diversification and aims to provide investors with regular income through interest payments.
Objective: The primary investment goal of VMBS is to closely track the performance of the Bloomberg U.S. MBS Index. The ETF seeks to generate income and capital appreciation through its investments in mortgage-backed securities.
Issuer: VMBS is issued by Vanguard, one of the world's largest and most reputable investment management firms. Vanguard is known for its low-cost, index-tracking funds and its commitment to investor-focused solutions.
- Reputation and Reliability: Vanguard enjoys a strong reputation in the financial industry due to its long history, robust investment performance, and commitment to investor transparency.
- Management: Vanguard employs a team of experienced portfolio managers with expertise in managing fixed-income investments.
Market Share: VMBS is one of the largest ETFs in the mortgage-backed securities space, with over $30 billion in assets under management. Its market share within the U.S. MBS ETF category is significant.
Total Net Assets: VMBS currently has approximately $34.32 billion in total net assets.
Moat: VMBS's moat stems from its affiliation with Vanguard, its low expense ratio, and its efficient portfolio management.
- Vanguard's Brand Recognition: The Vanguard name carries significant weight in the investment world, attracting investors due to the firm's reputation for low costs and investor trust.
- Low Expense Ratio: VMBS boasts an exceptionally low expense ratio of 0.04%, making it one of the most cost-effective ways to gain exposure to the U.S. mortgage-backed securities market.
- Experienced Management: The ETF benefits from Vanguard's robust portfolio management expertise, ensuring efficient investment selection and risk diversification.
Financial Performance: Compared to its benchmark, the Bloomberg U.S. MBS Index, VMBS has historically exhibited minimal tracking error, closely matching the index's performance. The ETF has also delivered relatively consistent returns over various time horizons.
Growth Trajectory: The U.S. mortgage-backed securities market is expected to experience moderate growth in the coming years, supported by factors like rising demand for housing and low-interest rates. This suggests positive prospects for VMBS in terms of asset growth and potential price appreciation.
Liquidity: VMBS enjoys high liquidity supported by its large trading volume and tight bid-ask spread. This makes it easy for investors to buy and sell shares without significantly impacting the price.
Market Dynamics: Key factors that can impact VMBS include economic indicators like interest rates and inflation, mortgage delinquency rates, and overall housing market conditions.
Competitors: Major competitors in the U.S. MBS ETF space include iShares MBS ETF (MBB) and Invesco Mortgage-Backed Securities ETF (MORT). However, VMBS holds the highest market share among these.
Expense Ratio: VMBS has an exceptionally low expense ratio of 0.04%, making it highly cost-effective for investors compared to other similar ETFs.
Investment Approach and Strategy:
- Strategy: VMBS passively tracks the Bloomberg U.S. MBS Index, aiming to closely replicate its performance.
- Composition: The ETF holds a diversified basket of U.S. agency mortgage-backed securities, with exposure to both fixed-rate and adjustable-rate mortgages across various maturities.
Key Points:
- Low-cost and tax-efficient investment in a broad range of U.S. mortgage-backed securities.
- Provides income through regular interest payments.
- Offers diversification and aims to track the market closely.
- Backed by Vanguard's reputation and strong track record.
Risks:
- Interest Rate Risk: Changes in interest rates can significantly impact the value of mortgage-backed securities, affecting the ETF's price.
- Prepayment Risk: Borrowers may prepay their mortgages, reducing the amount of interest received by the
About Vanguard Mortgage-Backed Securities Index Fund ETF Shares
Exchange NASDAQ | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The fund employs an indexing investment approach designed to track the performance of the Bloomberg U.S. MBS Float Adjusted Index. This index covers U.S. agency mortgage-backed pass-through securities issued by the GNMA, the FNMA, and the FHLMC. To be included in the index, pool aggregates must have at least $1 billion currently outstanding and a weighted average maturity of at least 1 year. All of the fund's investments will be selected through the sampling process, and at least 80% of the fund's assets will be invested in bonds included in the index.
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