VTWO vs VMBS

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

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

VTWO vs VMBS - Performance Comparison

Log

Key Characteristics

Financial metrics and valuation ratios

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

Net Assets

VTWO

$17B

Winner

VMBS

$17B

Expense Ratio

VTWO

0.06%

Winner

VMBS

0.03%

Max Drawdown

VTWO

42.44%

Winner

VMBS

22.61%

Sharpe Ratio

Winner

VTWO

1.79

VMBS

0.72

5Y Beta

VTWO

1.10

Winner

VMBS

0.04

P/E Ratio

VTWO

303.71

VMBS

N/A

Forward P/E

VTWO

14.56

VMBS

N/A

5Y Dividends CAGR

VTWO

15.52%

Winner

VMBS

19.16%

5Y EPS CAGR

VTWO

11.41%

VMBS

N/A

P/S Ratio

VTWO

1.41

VMBS

N/A

P/B Ratio

VTWO

2.13

VMBS

N/A

VTWO vs VMBS - Historical Returns

Returns include dividend reinvestment.

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

Winner

VTWO

+9.23%

VMBS

-0.02%

Winner

VTWO

+7.94%

VMBS

+0.07%

Winner

VTWO

+17.55%

VMBS

+1.30%

Winner

VTWO

+39.00%

VMBS

+7.27%

5Y(CAGR)

Winner

VTWO

+6.92%

VMBS

+0.51%

10Y(CAGR)

Winner

VTWO

+11.47%

VMBS

+1.38%

Max(CAGR)

Winner

VTWO

+11.44%

VMBS

+2.11%

VTWO vs VMBS - Annual Returns (2009 - 2026)

Returns include dividend reinvestment.

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

VTWO vs VMBS Drawdown Comparison

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

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

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

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

Correlation

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

0.82

-101

Dividend Comparison (2009 - 2026)

VTWO vs VMBS dividend yield comparison.

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