VMBS vs HYG

Comparison between VANGUARD MORTGAGE-BACKED SECURITIES INDEX FUND ETF SHARES (VMBS, ETF) and ISHARES IBOXX $ HIGH YIELD CORPORATE BOND ETF (HYG, ETF).

5-Year PerformanceHYG has outperformed VMBS, delivering a return of +3.8% compared to +0.5%

VMBS vs HYG - Performance Comparison

Log

Key Characteristics

Financial metrics and valuation ratios

Metric	VMBS(ETF)	HYG(ETF)
Net Assets	$17B	$16B
Expense Ratio	0.03%	0.49%
Max Drawdown	22.61%	41.90%
Sharpe Ratio	0.64	1.10
5Y Beta	0.04	0.24
5Y Dividends CAGR	19.16%	4.66%

Net Assets

Winner

VMBS

$17B

HYG

$16B

Expense Ratio

Winner

VMBS

0.03%

HYG

0.49%

Max Drawdown

Winner

VMBS

22.61%

HYG

41.90%

Sharpe Ratio

VMBS

0.64

Winner

HYG

1.10

5Y Beta

Winner

VMBS

0.04

HYG

0.24

5Y Dividends CAGR

Winner

VMBS

19.16%

HYG

4.66%

VMBS vs HYG - Historical Returns

Returns include dividend reinvestment.

Period	VMBS	HYG
1 month	+0.13%	+0.46%
3 months	+0.39%	+0.53%
6 months	+1.78%	+2.72%
1 year	+7.22%	+8.22%
5 years(CAGR)	+0.51%	+3.83%
10 years(CAGR)	+1.42%	+5.14%
Max(CAGR)	+2.13%	+4.98%

VMBS

+0.13%

Winner

HYG

+0.46%

VMBS

+0.39%

Winner

HYG

+0.53%

VMBS

+1.78%

Winner

HYG

+2.72%

VMBS

+7.22%

Winner

HYG

+8.22%

5Y(CAGR)

VMBS

+0.51%

Winner

HYG

+3.83%

10Y(CAGR)

VMBS

+1.42%

Winner

HYG

+5.14%

Max(CAGR)

VMBS

+2.13%

Winner

HYG

+4.98%

VMBS vs HYG - Annual Returns (2007 - 2026)

Returns include dividend reinvestment.

Year	VMBS	HYG
2026	+1.23%	+1.34%
2025	+8.50%	+8.34%
2024	+2.27%	+8.33%
2023	+4.56%	+11.32%
2022	-11.51%	-10.95%
2021	-1.30%	+3.96%
2020	+3.66%	+4.04%
2019	+6.04%	+14.24%
2018	+0.95%	-2.11%
2017	+2.35%	+5.63%
2016	+1.28%	+14.09%
2015	+1.42%	-5.03%
2014	+5.91%	+1.72%
2013	-1.21%	+4.77%
2012	+2.35%	+11.30%
2011	+5.83%	+6.68%
2010	+5.12%	+11.02%
2009	-1.00%	+28.98%
2008	N/A	-16.57%
2007	N/A	+1.62%

VMBS vs HYG Drawdown Comparison

The maximum drawdown for VMBS was -17.47%, occurring on Oct 20, 2022. Recovery took 1201 trading sessions.

The maximum drawdown for HYG was -34.28%, occurring on Nov 20, 2008. Recovery took 556 trading sessions.

The current VMBS drawdown is -0.89%. The current HYG drawdown is -0.11%.

Rank	VMBS	HYG
#1	-17.47% Jan 5, 2021 - Oct 16, 2025	-34.28% Sep 19, 2007 - Dec 2, 2009
#2	-5.08% Mar 9, 2020 - Mar 27, 2020	-22.03% Feb 13, 2020 - Nov 4, 2020
#3	-4.00% Sep 26, 2012 - Mar 3, 2014	-15.79% Dec 27, 2021 - Mar 7, 2024
#4	-3.26% Sep 27, 2016 - Aug 3, 2017	-13.44% Apr 15, 2015 - Jul 8, 2016
#5	-2.81% Sep 7, 2017 - Dec 28, 2018	-10.05% Jul 22, 2011 - Oct 24, 2011
#6	-2.79% Nov 4, 2010 - Mar 16, 2011	-8.38% May 25, 2007 - Sep 18, 2007
#7	-2.51% Feb 27, 2026 - Mar 26, 2026	-7.90% Oct 27, 2011 - Dec 23, 2011
#8	-1.50% Apr 24, 2015 - Sep 17, 2015	-7.07% Apr 23, 2010 - Jul 20, 2010
#9	-1.47% Nov 30, 2009 - Feb 4, 2010	-7.05% May 8, 2013 - Nov 29, 2013
#10	-1.33% Mar 16, 2011 - Apr 18, 2011	-6.42% Jun 25, 2014 - Apr 15, 2015
#11	-1.30% Sep 22, 2011 - Dec 7, 2011	-6.41% Oct 1, 2018 - Jan 31, 2019
#12	-1.13% Mar 23, 2010 - May 7, 2010	-6.05% Jan 8, 2010 - Mar 16, 2010
#13	-1.01% Jun 8, 2011 - Jul 29, 2011	-4.56% May 18, 2011 - Jul 7, 2011
#14	-0.95% Aug 18, 2011 - Sep 22, 2011	-4.56% Feb 28, 2025 - May 12, 2025
#15	-0.91% Oct 19, 2015 - Jan 7, 2016	-4.50% May 2, 2012 - Jun 29, 2012

Correlation

Correlation between VMBS and HYG is 0.89 which considered as a strong positive correlation - the stocks tend to move together.

0.89

-101

Dividend Comparison (2007 - 2026)

VMBS vs HYG dividend yield comparison.

Year	VMBS	HYG
2026	1.38%	1.99%
2025	4.20%	5.71%
2024	3.94%	6.01%
2023	3.31%	5.74%
2022	2.35%	5.30%
2021	1.02%	4.02%
2020	2.01%	4.88%
2019	2.77%	4.99%
2018	2.72%	5.54%
2017	2.16%	5.12%
2016	2.10%	5.27%
2015	2.12%	5.90%
2014	1.90%	5.69%
2013	0.99%	6.10%
2012	1.62%	6.60%
2011	2.65%	7.51%
2010	3.88%	8.25%
2009	0.20%	9.48%
2008	0.00%	10.08%
2007	0.00%	5.23%