VMBS ETF — Holdings & Analysis

The Vanguard Mortgage-Backed Securities ETF (VMBS) is a passively managed fund with $16.90 billion in assets under management. VMBS seeks to track the performance of the U.S.

agency mortgage-backed pass-through securities market, focusing on securities issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). With a very low expense ratio of 0.0300%, VMBS offers investors a cost-effective way to gain exposure to the U.S. mortgage-backed securities market. The fund's investment strategy targets a moderate and sustainable level of current income, making it a potentially suitable option for income-seeking investors.

Vanguard Mortgage-Backed Securities ETF (VMBS) ETF — Price, Holdings & Analysis

The Vanguard Mortgage-Backed Securities ETF (VMBS) is a passively managed fund with $16.90 billion in assets under management. VMBS seeks to track the performance of the U.S. agency mortgage-backed pass-through securities market, focusing on securities issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). With a very low expense ratio of 0.0300%, VMBS offers investors a cost-effective way to gain exposure to the U.S. mortgage-backed securities market. The fund's investment strategy targets a moderate and sustainable level of current income, making it a potentially suitable option for income-seeking investors.

ETF Overview

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.

VMBS aims to provide a moderate and sustainable level of current income by investing primarily in U.S. agency mortgage-backed pass-through securities. These securities are issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). As of 2026-03-15, the fund holds 344 securities. The ETF's investment approach focuses on securities with a dollar-weighted average maturity of 3 to 10 years, indicating a moderate level of interest rate risk. With its entire sector allocation in Cash & Others, VMBS offers concentrated exposure to the U.S. mortgage-backed securities market. This targeted approach differentiates VMBS from broader bond ETFs that may include corporate or municipal bonds. The fund is designed for investors seeking income from government-backed mortgage securities.

Risk Metrics

VMBS presents a unique risk profile due to its concentration in U.S. agency mortgage-backed securities. The fund's sector allocation is 100.0% in Cash & Others, indicating a lack of diversification across different sectors. While these securities are backed by government agencies, they are still subject to interest rate risk and prepayment risk. The ETF's beta of 1.10 (3Y) suggests that it is slightly more volatile than the overall market. However, the low expense ratio of 0.0300% helps to minimize the impact of expenses on overall returns. Investors should be aware of the potential risks associated with investing in mortgage-backed securities, including changes in interest rates and the potential for borrowers to prepay their mortgages, which can impact the fund's income stream. Past performance does not guarantee future results.

Expense Ratio

0.03%

How Is the Fund Allocated?

Sector	Weight
Cash & Others	100.0%

Country	Weight
Other	100.0%

Dividend Yield

0.00%

Vanguard Long-Term Treasury ETF (VGLT) — 0.03% expense ratio

Vanguard Morningstar Total Stock Market ETF (VTI) (Large Cap Equity) — 0.03% expense ratio
Vanguard S&P 500 ETF (VOO) (Large Cap Equity) — 0.03% expense ratio
Vanguard Real Estate ETF (VNQ) (Real Estate (Listed/REITs)) — 0.13% expense ratio
Vanguard Mega Cap ETF (MGC) (Large Cap Equity) — 0.05% expense ratio
Vanguard Total Bond Market ETF (BND) (Core Investment Grade Bond) — 0.03% expense ratio
Vanguard Long-Term Corporate Bond ETF (VCLT) (Core Investment Grade Bond) — 0.03% expense ratio

Risk Metrics

Beta: 1.10

Questions & Answers

What is VMBS and what does it track?

The Vanguard Mortgage-Backed Securities ETF (VMBS) is an exchange-traded fund that seeks to track the performance of the U.S. agency mortgage-backed pass-through securities market.

It primarily invests in securities issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). These securities represent a claim on the cash flows from a pool of mortgages.

What are the top holdings in VMBS?

As a mortgage-backed securities ETF, VMBS's holdings consist of numerous mortgage-backed pass-through certificates. The fund's top holdings are constantly changing as new securities are added and old ones mature or are paid off.

Because the fund invests in a large number of securities (344 holdings), the weight of each individual holding is relatively small.

Is VMBS a good long-term investment?

VMBS can be considered as a long-term investment option for investors seeking exposure to the U.S. mortgage-backed securities market and a moderate level of income. The fund's low expense ratio of 0.0300% makes it a cost-effective choice for long-term investors.

Does VMBS pay dividends?

While the provided data shows a dividend yield of 0.00% for VMBS as of 2026-03-15, it's important to check the most current information from Vanguard or a financial data provider.

Mortgage-backed securities ETFs like VMBS typically distribute income generated from the underlying mortgage payments to shareholders.