VMBS vs VTWO

Comparison between VANGUARD MORTGAGE-BACKED SECURITIES INDEX FUND ETF SHARES (VMBS, ETF) and VANGUARD RUSSELL 2000 INDEX FUND ETF SHARES (VTWO, ETF).

5-Year PerformanceVTWO has outperformed VMBS, delivering a return of +6.9% compared to +0.5%

VMBS vs VTWO - Performance Comparison

Log

Key Characteristics

Financial metrics and valuation ratios

Metric	VMBS(ETF)	VTWO(ETF)
Net Assets	$17B	$17B
Expense Ratio	0.03%	0.06%
Max Drawdown	22.61%	42.44%
Sharpe Ratio	0.72	1.79
5Y Beta	0.04	1.10
P/E Ratio	N/A	303.71
Forward P/E	N/A	14.56
5Y Dividends CAGR	19.16%	15.52%
5Y EPS CAGR	N/A	11.41%
P/S Ratio	N/A	1.41
P/B Ratio	N/A	2.13

Net Assets

Winner

VMBS

$17B

VTWO

$17B

Expense Ratio

Winner

VMBS

0.03%

VTWO

0.06%

Max Drawdown

Winner

VMBS

22.61%

VTWO

42.44%

Sharpe Ratio

VMBS

0.72

Winner

VTWO

1.79

5Y Beta

Winner

VMBS

0.04

VTWO

1.10

P/E Ratio

VMBS

N/A

VTWO

303.71

Forward P/E

VMBS

N/A

VTWO

14.56

5Y Dividends CAGR

Winner

VMBS

19.16%

VTWO

15.52%

5Y EPS CAGR

VMBS

N/A

VTWO

11.41%

P/S Ratio

VMBS

N/A

VTWO

1.41

P/B Ratio

VMBS

N/A

VTWO

2.13

VMBS vs VTWO - Historical Returns

Returns include dividend reinvestment.

Period	VMBS	VTWO
1 month	-0.02%	+9.23%
3 months	+0.07%	+7.94%
6 months	+1.30%	+17.55%
1 year	+7.27%	+39.00%
5 years(CAGR)	+0.51%	+6.92%
10 years(CAGR)	+1.38%	+11.47%
Max(CAGR)	+2.11%	+11.44%

VMBS

-0.02%

Winner

VTWO

+9.23%

VMBS

+0.07%

Winner

VTWO

+7.94%

VMBS

+1.30%

Winner

VTWO

+17.55%

VMBS

+7.27%

Winner

VTWO

+39.00%

5Y(CAGR)

VMBS

+0.51%

Winner

VTWO

+6.92%

10Y(CAGR)

VMBS

+1.38%

Winner

VTWO

+11.47%

Max(CAGR)

VMBS

+2.11%

Winner

VTWO

+11.44%

VMBS vs VTWO - Annual Returns (2009 - 2026)

Returns include dividend reinvestment.

Year	VMBS	VTWO
2026	+0.95%	+14.99%
2025	+8.50%	+12.81%
2024	+2.27%	+12.23%
2023	+4.56%	+17.77%
2022	-11.51%	-21.39%
2021	-1.30%	+16.50%
2020	+3.66%	+20.23%
2019	+6.04%	+24.88%
2018	+0.95%	-11.97%
2017	+2.35%	+13.93%
2016	+1.28%	+24.32%
2015	+1.42%	-3.94%
2014	+5.91%	+6.11%
2013	-1.21%	+34.82%
2012	+2.35%	+14.49%
2011	+5.83%	-5.96%
2010	+5.12%	+20.09%
2009	-1.00%	N/A

VMBS vs VTWO Drawdown Comparison

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

The maximum drawdown for VTWO was -41.18%, occurring on Mar 23, 2020. Recovery took 551 trading sessions.

The current VMBS drawdown is -1.16%. The current VTWO drawdown is -0.50%.

Rank	VMBS	VTWO
#1	-17.47% Jan 5, 2021 - Oct 16, 2025	-41.18% Aug 31, 2018 - Nov 9, 2020
#2	-5.08% Mar 9, 2020 - Mar 27, 2020	-31.87% Nov 8, 2021 - Nov 6, 2024
#3	-4.00% Sep 26, 2012 - Mar 3, 2014	-29.01% Apr 29, 2011 - Sep 13, 2012
#4	-3.26% Sep 27, 2016 - Aug 3, 2017	-27.56% Nov 25, 2024 - Sep 11, 2025
#5	-2.81% Sep 7, 2017 - Dec 28, 2018	-25.71% Jun 23, 2015 - Nov 11, 2016
#6	-2.79% Nov 4, 2010 - Mar 16, 2011	-12.72% Jul 3, 2014 - Dec 22, 2014
#7	-2.51% Feb 27, 2026 - Mar 26, 2026	-10.99% Jan 22, 2026 - Apr 15, 2026
#8	-1.50% Apr 24, 2015 - Sep 17, 2015	-10.91% Sep 14, 2012 - Jan 2, 2013
#9	-1.47% Nov 30, 2009 - Feb 4, 2010	-9.62% Mar 15, 2021 - Nov 1, 2021
#10	-1.33% Mar 16, 2011 - Apr 18, 2011	-9.15% Jan 23, 2018 - May 11, 2018
#11	-1.30% Sep 22, 2011 - Dec 7, 2011	-9.00% Mar 4, 2014 - Jul 1, 2014
#12	-1.13% Mar 23, 2010 - May 7, 2010	-8.47% Oct 15, 2025 - Dec 4, 2025
#13	-1.01% Jun 8, 2011 - Jul 29, 2011	-7.39% Jan 22, 2014 - Feb 26, 2014
#14	-0.95% Aug 18, 2011 - Sep 22, 2011	-6.52% Feb 9, 2021 - Mar 11, 2021
#15	-0.91% Oct 19, 2015 - Jan 7, 2016	-6.29% Jul 25, 2017 - Sep 22, 2017

Correlation

Correlation between VMBS and VTWO is 0.82 which considered as a strong positive correlation - the stocks tend to move together.

0.82

-101

Dividend Comparison (2009 - 2026)

VMBS vs VTWO dividend yield comparison.

Year	VMBS	VTWO
2026	1.38%	0.23%
2025	4.20%	1.25%
2024	3.94%	1.21%
2023	3.31%	1.45%
2022	2.35%	1.48%
2021	1.02%	1.13%
2020	2.01%	0.92%
2019	2.77%	1.36%
2018	2.72%	1.41%
2017	2.16%	1.18%
2016	2.10%	1.27%
2015	2.12%	1.23%
2014	1.90%	1.12%
2013	0.99%	1.04%
2012	1.62%	1.56%
2011	2.65%	0.92%
2010	3.88%	0.37%
2009	0.20%	0.00%