Vanguard Mortgage-Backed Securities ETF

Frequently Asked Questions About VMBS

What does VMBS invest in?

This ETF is designed to deliver a consistent and reasonable stream of current income for its investors. It primarily allocates its assets to pass-through debt instruments that are secured by U.S. mortgages and guaranteed by federal entities such as Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). The fund exhibits an intermediate level of interest rate sensitivity, with the dollar-weighted average maturity of its holdings typically spanning between three and ten years.

What is the expense ratio of VMBS?

Vanguard Mortgage-Backed Securities ETF (VMBS) charges an expense ratio of 0.03%. This is the annual fee deducted from fund assets to cover management and operations.

What is VMBS's dividend yield?

VMBS's trailing-twelve-month yield is 4.34%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VMBS?

Effective duration measures VMBS's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VMBS's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of VMBS?

VMBS's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of VMBS?

Yield to maturity (YTM) is the total return you'd earn from VMBS if every bond in the portfolio is held to maturity at the current price. VMBS's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.