Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
Help & Tutorial 
Cancel anytime
- Chart
- Upturn Summary
- Highlights
Upturn AI SWOT - About
Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS)
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- Pass (Skip investing)
Stock price based on last close (see disclosures)
- ALL
- YEAR
- MONTH
- WEEK
Upturn Advisory Summary
04/01/2025: VMBS (2-star) has a low Upturn Star Rating. Not recommended to BUY.
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 5.88% | Avg. Invested days 46 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | ETF Returns Performance  2.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Volume (30-day avg) 2050807 | Beta 1.09 | 52 Weeks Range 42.31 - 46.48 | Updated Date 04/2/2025 |
52 Weeks Range 42.31 - 46.48 | Updated Date 04/2/2025 |
Upturn AI SWOT
Vanguard Mortgage-Backed Securities Index Fund ETF Shares
ETF Overview
Overview
The Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS) seeks to track the performance of a market-weighted mortgage-backed securities index. It primarily invests in agency mortgage-backed pass-through securities issued by GNMA, Fannie Mae, and Freddie Mac, offering exposure to the U.S. mortgage market. The fund aims for diversified exposure within the mortgage-backed securities sector, targeting high credit quality securities.
Reputation and Reliability
Vanguard is highly reputable and reliable, known for low-cost ETFs and a long history of strong fund management.
Management Expertise
Vanguard has extensive expertise in managing fixed-income assets and index-tracking funds.
Investment Objective
Goal
To track the performance of a market-weighted mortgage-backed securities index.
Investment Approach and Strategy
Strategy: The ETF aims to track the Bloomberg U.S. Mortgage Backed Securities Index.
Composition The ETF primarily holds mortgage-backed securities.
Market Position
Market Share: VMBS holds a significant market share within the mortgage-backed securities ETF sector.
Total Net Assets (AUM): 14270000000
Competitors
Key Competitors
- iShares MBS ETF (MBB)
- SPDR Portfolio Aggregate Bond ETF (SPAB)
- Schwab U.S. Aggregate Bond ETF (SCHZ)
Competitive Landscape
The mortgage-backed securities ETF market is moderately competitive, with iShares (MBB) holding a larger market share. VMBS offers a low-cost option with Vanguard's reputable management. Competitors offer similar exposures, but may vary slightly in tracking methodology and expense ratios. VMBS competes primarily on price and tracking accuracy.
Financial Performance
Historical Performance: Historical performance depends on interest rate movements and mortgage prepayment speeds. Recent returns reflect the interest rate environment.
Benchmark Comparison: The ETF's performance closely tracks the Bloomberg U.S. Mortgage Backed Securities Index.
Expense Ratio: 0.04
Liquidity
Average Trading Volume
The ETF exhibits moderate liquidity, allowing investors to trade shares efficiently.
Bid-Ask Spread
The bid-ask spread is generally tight, reflecting the ETF's liquidity and trading volume.
Market Dynamics
Market Environment Factors
Economic indicators like interest rates, housing market activity, and inflation significantly impact VMBS. Changes in Federal Reserve policy and mortgage rates heavily influence its performance.
Growth Trajectory
The ETF's growth is tied to the overall mortgage market and investor demand for fixed-income securities. Changes in interest rate expectations affect inflows and outflows.
Moat and Competitive Advantages
Competitive Edge
VMBS benefits from Vanguard's low-cost structure and strong brand reputation. The ETF offers a simple and efficient way to access the U.S. mortgage-backed securities market with a highly diversified portfolio. Its ultra-low expense ratio provides a significant advantage over competing funds. Vanguard's established expertise in fixed-income management further strengthens its competitive position.
Risk Analysis
Volatility
VMBS exhibits moderate volatility, influenced by interest rate sensitivity and prepayment risk.
Market Risk
The ETF is exposed to interest rate risk, prepayment risk, and credit risk (although largely mitigated by focusing on agency-backed securities).
Investor Profile
Ideal Investor Profile
The ideal investor is a risk-averse investor seeking stable income and diversification within a fixed-income portfolio.
Market Risk
VMBS is best suited for long-term investors seeking passive income and a conservative approach to fixed-income investing.
Summary
VMBS provides low-cost access to the U.S. mortgage-backed securities market, tracking the Bloomberg U.S. Mortgage Backed Securities Index. It is a suitable option for risk-averse investors seeking stable income and diversification. Vanguard's reputable management and low expense ratio make it a competitive choice. Performance is highly sensitive to interest rate movements, making it vulnerable in rising rate environments.
Similar Companies
AGG
iShares Core U.S. Aggregate Bond ETF
AGG
iShares Core U.S. Aggregate Bond ETF
MBB
iShares MBS ETF
MBB
iShares MBS ETF
SCHZ
Schwab U.S. Aggregate Bond ETF
SCHZ
Schwab U.S. Aggregate Bond ETF
SPAB
SPDR® Portfolio Aggregate Bond ETF
SPAB
SPDR® Portfolio Aggregate Bond ETF
Sources and Disclaimers
Data Sources:
- Vanguard Official Website
- Bloomberg
- Morningstar
- ETFdb.com
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
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.
Upturn is now on iOS and Android!
Experience Upturn on your mobile. Install it now!
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.