ATLASVanguard Mortgage-Backed Securities ETF (VMBS): outlook, holdings and fees
Vanguard Mortgage-Backed Securities ETF (VMBS) is an exchange-traded fund and is managed by Vanguard. The expense ratio is 0.04% and the yield is 4.44%. The ten largest holdings are 7% of the fund.
Fund data as of Oct 14, 2026 · Price Nov 2, 2026
ATLAS view on VMBS
| Last price | $45.45 (-0.3%) |
|---|---|
| ATLAS chance of a higher price in 1 month | 64% |
| Likely 1-month range (50%) | $45.23 – $46.19 |
| Normal 1-day range (±1σ) | ±0.4% |
| Distribution yield | 4.44% |
ATLAS probabilities use the same calibrated model as every stock page. A fair value is shown for companies, not funds; the holdings below link to the fair value of each company.
VMBS fund facts
| Issuer | Vanguard |
|---|---|
| Theme | Other strategies |
| Assets under management | $15.6B |
| Expense ratio | 0.04% |
| Number of holdings | 6 |
| Portfolio turnover | 105% |
| Inception | Nov 19, 2009 |
| Exchange | NASDAQ |
The fund manager employs an indexing investment approach designed to track the performance of the Bloomberg U.S. MBS Float Adjusted Index. This index covers U.S. agency mortgage-backed pass-through securities issued by the GNMA, the FNMA, and the FHLMC. To be included in the index, pool aggregates must have at least $1 billion currently outstanding and a weighted average maturity of at least 1 year. 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.
VMBS top holdings
| Holding | Sector | Weight |
|---|---|---|
| Federal National Mortgage Association 2.5% | – | 2.25% |
| Federal National Mortgage Association 2.43% | – | 1.76% |
| Government National Mortgage Association 2.43% | – | 0.72% |
| Federal National Mortgage Association | – | 0.64% |
| Federal National Mortgage Association 3.43% | – | 0.64% |
| Federal Home Loan Mortgage Corporation | – | 0.63% |
Holdings with an ATLAS page link to their probability range, fair value and earnings calendar.
VMBS returns and risk
| Year to date | -2.3% |
|---|---|
| 1 year | -0.9% |
| 3 years (annualised) | +4.9% |
| 5 years (annualised) | -0.1% |
| 10 years (annualised) | +0.9% |
| Volatility (3 years) | 6.5% |
| Sharpe ratio (3 years) | 0.03 |
Past returns do not guarantee future results.
VMBS: frequently asked questions
What does VMBS invest in?
Vanguard Mortgage-Backed Securities ETF invests in a portfolio of securities. Its largest holdings are Federal National Mortgage Association 2.5% (2.3%), Federal National Mortgage Association 2.43% (1.8%), Government National Mortgage Association 2.43% (0.7%), Federal National Mortgage Association (0.6%), Federal National Mortgage Association 3.43% (0.6%).
What is the VMBS expense ratio?
0.04% a year: about $4.00 for every $10,000 invested.
What is the VMBS dividend yield?
4.44%. ATLAS does not hold the exact distribution dates for ETFs.
Will VMBS go up?
Nobody can know. The ATLAS model puts the chance of a higher price in one month at 64%, with a likely range (50%) of $45.23 to $46.19 from $45.45 today. It is a probability, not a prediction.
How has VMBS performed?
Year to date -2.3%, one year -0.9%, three years +4.9% a year, five years -0.1% a year. Past returns do not guarantee future results.
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Educational information, not investment advice. Disclaimer