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VMBS Vanguard Mortgage-Backed Securities ETF

Also available as an Admiral™ Shares mutual fund.

Management style

Index

Asset class

Intermediate-Term Bond

Category

Intermediate Government

Risk / reward scale

Start of Risk Scale. On a scale of 1 to 5, 1 is less risk less reward, 5 is more risk more reward
The fund risk level is a 2

Less

More

End of Risk Scale.

Expense ratio

0.03%

as of 02/03/2025

as of 06/12/2025

Market price (MP)

$45.62

as of 06/16/2025

NAV price

$45.63

as of 06/16/2025

Overview

Key facts

IOV ticker symbol

VMBS.IV

CUSIP

92206C771

Management style

Index

Asset class

Intermediate-Term Bond

Category

Intermediate Government

Inception date

11/19/2009

Fund Number

3148

Ratings

Risk / reward scale

Start of Risk Scale. On a scale of 1 to 5, 1 is less risk less reward, 5 is more risk more reward
The fund risk level is a 2

Less

More

End of Risk Scale.
Price

Minimum Investment

$1.00

as of 06/16/2025

Market price

$45.62

as of 06/16/2025

Market price change

decreased-$0.07 (-0.15%)

as of 06/16/2025

Expense Ratio

0.03%

as of 02/03/2025

NAV Price

$45.63

as of 06/16/2025

NAV Change

decreased-$0.07 (-0.15%)

as of 06/16/2025

Performance

YTD returns (MP)

2.47%

as of 06/16/2025

YTD returns (NAV)

2.75%

as of 06/16/2025

Product summary
  • Seeks to provide a moderate and sustainable level of current income.
  • Invests primarily in U.S. agency mortgage-backed pass-through securities issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC).
  • Moderate interest rate risk, with a dollar-weighted average maturity of 3 to 10 years.
Fund management

Vanguard Fixed Income Group

Performance & fees

Total returns
Month-end/Quarterly Pre-Tax Toggle

as of 05/31/2025

Recent returns

Average annual

Month-end3-Month totalYTD1-yr3-yr5-yr10-yr

Since inception

11/19/2009

VMBS (Market price)-0.83%-0.50%2.38%6.02%1.46%-0.87%1.01%1.83%
VMBS (NAV)
-0.83%-0.50%2.52%6.00%1.41%-0.89%0.99%1.82%

Benchmark

-0.82%-0.49%2.46%5.99%1.38%-0.78%1.09%1.89%
Market Price/Nav Toggle

as of 03/31/2025

Year1st Qtr2nd Qtr3rd Qtr4th QtrYear-end

Benchmark

20252.85%
2024-0.98%0.53%5.01%-2.70%1.71% 1.54%
20232.75%-0.47%-3.94%7.18%5.29% 5.14%
2022-5.04%-4.07%-5.15%1.98%-11.89% -11.45%
2021-1.13%0.19%0.14%-0.49%-1.29% -1.05%
20202.93%0.31%0.23%0.30%3.80% 3.87%
20192.08%1.77%1.51%0.67%6.17% 6.18%
2018-1.21%0.29%-0.15%2.01%0.91% 0.99%
20170.65%0.85%0.81%0.11%2.44% 2.37%
20161.72%1.18%0.62%-2.19%1.29% 1.63%
20151.06%-0.83%1.39%-0.12%1.50% 1.48%

as of 12/31/2024

Year

Capital return by NAV

Income return by NAV

Total return by NAV

Total return by Market Price

Benchmark

2024-2.46% 3.89%1.43% 1.71%1.54%
20231.55% 3.49%5.04% 5.29%5.14%
2022-13.52% 1.96%-11.56% -11.89%-11.45%
2021-2.31% 1.00%-1.32% -1.29%-1.05%
20201.92% 1.86%3.77% 3.80%3.87%
20193.24% 2.93%6.17% 6.17%6.18%
2018-1.85% 2.72%0.87% 0.91%0.99%
20170.19% 2.18%2.37% 2.44%2.37%
2016-0.33% 1.77%1.43% 1.29%1.63%
2015-0.11% 1.54%1.43% 1.50%1.48%
20144.12% 1.69%5.81% 5.80%5.59%
2013-2.24% 0.96%-1.28% -1.26%-0.98%
20121.32% 1.15%2.47% 2.40%2.58%
20113.59% 2.29%5.89% 5.92%6.07%
20102.93% 2.30%5.24% 5.38%5.14%

as of 05/31/2025

1-yr3-yr5-yr10-yr

Since inception

11/19/2009

VMBS (Market price)6.02%4.44%-4.28%10.57%32.48%
VMBS (NAV)6.00% 4.29%-4.36% 10.39% 32.36%

Benchmark

5.99%4.21%-3.86%11.50%

Expense ratio

VMBS

0.03%

Average expense ratio of similar funds3

0.71%

Historical volatility measures
as of 05/31/2025
BenchmarkR-Squared4Beta4
Bloomberg U.S. MBS Float Adjusted Index21.001.01
Bloomberg U.S. Aggregate Bond Index0.991.13

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate so that investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.

Price

Current market price

Current price as of

Market price change

— (—)

Open

High

Low

Bid/Ask spread

Volume

Size

Tick

Quotes delayed at least 15 minutes. Source: FactSet.

Closing price

Closing price as of 06/16/2025

Market price change

decreased-$0.07 (-0.15%)

NAV

$45.63

NAV change

decreased-$0.07 (-0.15%)

30-day Median Bid/Ask spread

0.02%

52-week High

$47.57

as of 09/16/2024

52-week Low

$44.66

as of 01/13/2025

52-week Difference

$2.91 (6.52%)

Premium/Discount

-$0.01

25-day Avg Volume

50-day Avg Volume

30 day SEC yield

4.13%

 

J SEC yield footnote code

 

as of 06/12/2025

Historical prices
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Portfolio composition

Characteristics

This information is temporarily unavailable.

Holding details

This information is temporarily unavailable.

Fund management

Vanguard Mortgage-Backed Securities ETF seeks to track the performance of a market-weighted U.S. mortgage-backed securities index with an intermediate-term dollar-weighted average maturity. The fund invests by sampling the index, meaning that it holds a range of securities that, in the aggregate, approximates the full index in terms of key risk factors and other characteristics. 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. The fund maintains a dollar-weighted average maturity consistent with that of the index.

Vanguard Fixed Income Group
Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is among the world’s largest equity and fixed income managers. As chief investment officer, Gregory Davis, CFA, oversees Vanguard’s Equity Index, Investment Strategy, Quantitative Equity, and Fixed Income Groups. Sara Devereux, principal and global head of Fixed Income Group, has direct oversight responsibility for all money market, bond, and stable value portfolios managed by the Fixed Income Group. The Fixed Income Group offers actively managed investments in U.S. Treasury, corporate, and tax-exempt securities, as well as passively managed index portfolios. Since 1981, it has refined techniques in total-return management, credit research, and index sampling to seek to deliver consistent performance with transparency and risk control. The group has advised Vanguard Mortgage-Backed Securities ETF since 2009.

Investment Manager Biography

Joshua C. Barrickman
CFA, Principal, Co-Head of Fixed Income Indexing Americas Portfolio manager.
Advised the fund since 2013. Worked in investment management since 1999. B.S., Ohio Northern University. M.B.A., Lehigh University.

Performance & fees

1
Effective July 15, 2024, the market price returns are calculated using the official closing price as reported by the ETF’s primary exchange. Prior to July 15, 2024, the market price returns were calculated using the midpoint between the bid and ask prices as of the closing time of the New York Stock Exchange (typically 4 p.m., Eastern time). The returns shown do not represent the returns you would receive if you traded shares at other times.
2
Includes U.S. agency mortgage-backed pass-through securities.
3

Most recent data available. © 2023 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; (3) does not constitute investment advice offered by Morningstar; and (4) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

4

R-squared and beta are calculated from trailing 36-month fund returns relative to the associated benchmark.

© 2023 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Vanguard ETFs as a share class: Vanguard ETFs® (exchange-traded funds) are a class of shares listed for trading on an exchange. The shares are available only through a broker, including Vanguard Brokerage Services®.

Vanguard ETF® Shares are not redeemable with the issuing fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

Total returns: Short-term total return information is provided only as a service. Historical performance—particularly short-term performance—is no guarantee of future returns. Price, yield, and return on an actual investment will fluctuate, and you may have a gain or loss when you sell. Average annual returns include changes in price and reinvestments of dividends and capital gains. Since-inception returns for less than 1 year and year-to-date returns aren't annualized. Index performance is provided as a benchmark but isn't illustrative of any particular investment. You can't invest in an index.

Standardized returns: To see quarterly fee-adjusted returns, refer to the Price & Performance details.

Expense ratios: Expense ratios are displayed on Overview. For investments that are less than 1 fiscal year old, expense ratios are estimated.

Risk: All investing is subject to risk, including the possible loss of the money you invest. Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility. Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.

Vanguard average ETF expense ratio: 0.05%. Industry average ETF expense ratio: 0.22%. All averages are asset-weighted. Industry average excludes Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2023.

An investment in the fund could lose money over short or even long periods. You should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall bond market. Although Mortgage-Backed Securities ETF is listed for trading on the Nasdaq, it is possible that an active trading market may not be maintained. Trading of Mortgage-Backed Securities ETF on the Nasdaq may be halted if Nasdaq officials deem such action appropriate, if Mortgage-Backed Securities ETF is delisted from the Nasdaq, or if the activation of marketwide “circuit breakers” halts stock trading generally. The fund’s performance could be hurt by:

  • Interest rate risk: The chance that bond prices will decline because of rising interest rates.
  • Income risk: The chance that the fund’s income will decline because of falling interest rates.
  • Extension risk: The chance that during periods of rising interest rates, homeowners will prepay their mortgages at slower rates. This will lengthen the duration or average life of mortgage-backed securities held by the fund and delay the fund’s ability to reinvest proceeds at higher interest rates. Extension risk is high for the fund.
  • Prepayment risk: The chance that during periods of falling interest rates, homeowners will refinance their mortgages before their maturity dates, resulting in prepayment of mortgage-backed securities held by the fund. The fund would then lose any price appreciation above the mortgage’s principal and would be forced to reinvest the unanticipated proceeds at lower interest rates, resulting in a decline in the fund’s income. Prepayment risk is high for the fund.
  • Credit risk: The chance that the issuer of a mortgage-backed security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Credit risk should be very low for the fund because it invests in securities issued by U.S. government agencies and instrumentalities, including many securities backed by the full faith and credit of the U.S. government.
  • Liquidity risk: The chance that the fund may not be able to sell a security in a timely manner at a desired price.
  • Index sampling risk: The chance that the securities selected for the fund, in the aggregate, will not provide investment performance matching that of the index. Index sampling risk for the fund should be low.
  • Index-related risks: The fund is subject to risks associated with index investing, which include passive management risk, tracking error risk, and index provider risk. Passive management risk is the chance that the fund's use of an indexing strategy will negatively impact the fund's performance. Because the fund seeks to track the performance of its target index regardless of how that index is performing, the fund's performance may be lower than it would be if the fund were actively managed. Tracking error risk is the chance that the fund's performance will deviate from the performance of its target index. Tracking error risk may be heightened during times of increased market volatility or under other unusual market conditions. Index provider risk is the chance that the fund will be negatively impacted by changes or errors made by the index provider. Any gains, losses, or costs associated with or resulting from an error made by the index provider will generally be borne by the fund and, as a result, the fund's shareholders.