This ETF provides exposure to the mortgage backed security slice of the bond market, a corner of the finance world that has seen its share of troubles over the past few years. While MBS funds were at the heart of the subprime crisis, this product invests in liquid, stable bonds that are unlikely to default, pay out solid rates of interest, and provide valuable diversification benefits to a portfolio. Due to these benefits, most investors should consider adding some MBS holdings to their portfolio, albeit in a very small amount. Although VMBS is the cheapest of the three, it also is the least popular and as such may not be appropriate for traders who are seeking tight bid ask spreads and high levels of liquidity. However, the fund does offer significant benefits in terms of total diversification as it holds well over 300 securities in total, by far the most in the Category. Thanks to this impressive diversification as well as the fund's rock bottom expense ratio, long-term investors should consider buying this fund if they are looking for higher levels of exposure to the MBS market.
The adjacent table gives investors an individual Realtime Rating for VMBS on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Mortgage Backed Securities with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb.com Category.
|Agency Mortgage Backed||74.34%|
|Commercial Mortgage Backed||14.96%|
|Cash And Equivalents||10.28%|
|Non Agency Residential Mortgage Backed||0.0%|
|US Municipal Tax Advantaged||0.0%|
|0% to 1%||0.48%|
|1% to 2%||0.26%|
|2% to 3%||31.13%|
|3% to 4%||41.07%|
|4% to 5%||11.8%|
|5% to 6%||4.51%|
|6% to 7%||0.47%|
|7% to 8%||0.0%|
|8% to 9%||0.0%|
|9% to 10%||0.0%|
|Greater Than 10%||0.0%|
|Less Than 1 Year||0.0%|
There are 2 other ETFs in the Mortgage Backed Securities ETFdb.com Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb.com Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of VMBS relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb.com Category.
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