VMBS
Vanguard Mortgage-Backed Securities ETF · Vanguard
Bonds & Treasuries
1Y Return
+0.7%
Expense Ratio
0.03%
AUM
$16B
Dividend Yield
4.32%
Avg Annual Growth (10Y)
+0.2%
Issuer
Vanguard

Overview

Government-guaranteed mortgage bonds — over 5,000 agency MBS pools from Fannie, Freddie and Ginnie — at 0.03%.

Top Holdings

TickerHoldingWeight
FNMAFannie Mae 30yr pools~55%
FHLMCFreddie Mac 30yr pools~28%
GNMAGinnie Mae pools~12%
FNMAFannie Mae 15yr pools~4%
UMBS6.0% coupon pools~14%
UMBS5.5% coupon pools~16%
UMBS5.0% coupon pools~15%
UMBS4.5% coupon pools~12%
UMBS4.0% and below pools~30%
CASHCash & equivalents~1%

Fund Details

Index
Bloomberg US MBS Float Adjusted
# Holdings
~5,200
Inception
Nov 2009
Exchange
Nasdaq
Structure
Open-End Fund
Distribution
Monthly
Avg Annual Growth (10Y)
+0.2%
Avg Annual Yield (10Y)
2.69%

Investment Thesis

Agency MBS pays a visible spread over Treasuries for prepayment risk rather than credit risk — the government guarantees the principal — and with mortgage spreads still historically wide, VMBS collects 4.3% monthly from the safest structured product in finance. It is the passive, three-basis-point counterpart to active JMBS: no manager picking pools, just the whole market at cost.

Who It's For

Income investors who want government-backed yield above Treasuries and prefer index pricing to active fees. A core bond-sleeve diversifier alongside Treasury and corporate funds.

10-Year History

Annual Closing Price
YearClose% Chg
2016$45.56--
2017$46.02+1.0%
2018$46.25+0.5%
2019$48.33+4.5%
2020$50.02+3.5%
2021$49.27-1.5%
2022$43.36-12.0%
2023$44.22+2.0%
2024$44.44+0.5%
2025$46.00+3.5%
Annual Dividend Yield
YearYield
20161.80%
20172.00%
20182.60%
20192.60%
20201.90%
20211.50%
20222.50%
20233.60%
20244.10%
20254.30%
Annual AUM
YearAUM% Chg
2016$3B--
2017$5B+66.7%
2018$6.5B+30.0%
2019$9B+38.5%
2020$12B+33.3%
2021$15B+25.0%
2022$15B+0.0%
2023$15B+0.0%
2024$15B+0.0%
2025$16B+6.7%

Historical figures are ETFHub estimates modelled from asset-class return patterns and may differ from official fund records. Data as of September 2026.

Markets. Intelligence. Daily.

Full briefs on 350+ ETFs, curated daily ETF news, and a free weekly deep-dive newsletter — all on ETFHub.

Get the Free Weekly Brief Explore the ETF Portal Official Fund Page →