Vanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) Fund Overview
Educational signal · not a buy or sell recommendation · How to read this
Beta 1.10: the stock has moved about 10% more than the S&P 500.
For informational purposes only. Not financial advice. Machine-generated analysis by Stock Expert AI — model gemini-2.0-flash, generated Mar 17, 2026. Editorial oversight is systemic, not page-by-page. Editorially accountable: Sedat ANAK, Founder and Editor-in-Chief. Data sources: Financial Modeling Prep, Yahoo Finance, SEC EDGAR
Quick AnswerVanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) trades at $17.69. Vanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) is a low-cost index fund focused on U.S. mortgage-backed securities. Sector: Financials.
Price as of · Last analyzed: Mar 17, 2026Analyst Coverage for VMBSX: VMBSX does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage.
Vanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) Financial Services Profile
Vanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) offers a low-cost, passive investment strategy targeting the U.S. mortgage-backed securities market. The fund tracks the Bloomberg U.S. Mortgage Backed Securities Index, providing exposure to government-backed mortgage securities and generating monthly income for investors with a medium-term investment horizon.
What Is the Investment Thesis for VMBSX?
VMBSX offers a low-cost avenue to access the U.S. mortgage-backed securities market, tracking the Bloomberg U.S. Mortgage Backed Securities Index. With a beta of 1.10, the fund exhibits slightly higher volatility than the broader market. The primary value driver is its exposure to government-backed mortgage securities, providing a relatively safe haven in fixed income. A potential catalyst is increased demand for fixed-income investments amid economic uncertainty, driving inflows into the fund. However, a key risk is prepayment risk, where mortgage refinance activity could decrease the fund's yield. Investors seeking monthly income and a medium-term investment horizon may find VMBSX suitable for the fixed income portion of their portfolio.
Based on FMP financials and quantitative analysis
VMBSX Key Highlights
Market Cap: $16.93B indicating substantial assets under management and investor confidence.
- Beta: 1.10 suggesting slightly higher volatility compared to the overall market.
- Focus on U.S. Mortgage-Backed Securities: Provides targeted exposure to the U.S. housing market and mortgage rates.
- Low-Cost Index Fund: Offers a cost-effective way to access the mortgage-backed securities market.
- Monthly Income: Designed to provide investors with a consistent stream of monthly income.
Who Are VMBSX's Competitors?
VMBSX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | MoonshotScore |
|---|---|---|---|---|
| BOND PIMCO Active Bond Exchange-Traded Fund | $86.65 | +0.30% | $7.96B | — |
| EQPGX Fidelity Advisor Equity Growth I | $31.46 | +0.16% | $8.57B | — |
| FATIX Fidelity Advisor Technology I | $154.77 | +0.53% | $9.18B | — |
| FCNYX Fidelity Advisor Cnsv Inc Bd Z | $10.05 | 0.00% | $6.24B | — |
| FDCAX Fidelity Capital Trust Capital Appreciation Pt. | $55.08 | -0.15% | $8.20B | — |
| BLK BlackRock, Inc. | $1069.63 | -0.91% | $166B | 52 5-pillar |
| BX Blackstone Inc. | $111.82 | -1.36% | $135B | 69 5-pillar |
| APOS Apollo Global Management, Inc. | $25.50 | -0.39% | $74.6B | 56 5-pillar |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are VMBSX's Key Strengths?
Low expense ratio attracts cost-conscious investors.
- Diversified exposure to U.S. mortgage-backed securities.
- Passive management strategy reduces operational costs.
- Strong brand reputation of Vanguard.
What Are VMBSX's Weaknesses?
Subject to prepayment risk, which can reduce yield.
- Limited potential for outperformance due to passive management.
- Performance tied to the U.S. housing market and interest rates.
- No active management to mitigate market downturns.
What Are the Key Risks for VMBSX?
Prepayment risk due to mortgage refinance activity.
- Rising interest rates could negatively impact bond prices.
- Economic downturn could lead to increased mortgage defaults.
- Changes in government regulations affecting mortgage-backed securities.
What Are VMBSX's Competitive Advantages?
- Low-Cost Structure: Vanguard's reputation for low expense ratios provides a competitive advantage.
- Index Tracking: Passive management strategy reduces costs and complexity.
- Brand Reputation: Vanguard's strong brand and reputation for reliability attract investors.
- Diversification: Exposure to a broad range of mortgage-backed securities reduces risk.
What Does VMBSX Do?
Vanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) is a passively managed index fund designed to track the performance of the Bloomberg U.S. Mortgage Backed Securities Index. The fund provides investors with exposure to a diversified portfolio of U.S. mortgage-backed pass-through securities issued by the Government National Mortgage Association (GNMA), the Federal National Mortgage Association (FNMA), and the Federal Home Loan Mortgage Corporation (FHLMC). These agencies guarantee the principal and interest payments on the underlying mortgages, reducing credit risk for investors. The fund's objective is to provide current income while maintaining a relatively stable net asset value. VMBSX is part of Vanguard's Admiral Shares, which are designed for long-term investors and offer lower expense ratios compared to other share classes. The fund is suitable for investors seeking a low-cost way to gain exposure to the U.S. mortgage market and generate monthly income. It is particularly attractive for those with a medium-term investment horizon and a focus on fixed income. The fund's performance is closely tied to the overall health of the U.S. housing market and interest rate environment. Changes in interest rates and mortgage refinance activity can impact the fund's yield and overall return. The fund was created to provide investors with a simple and efficient way to access the mortgage-backed securities market without the complexities of individual security selection and management.
What Products and Services Does VMBSX Offer?
- Invests in U.S. mortgage-backed pass-through securities.
- Tracks the performance of the Bloomberg U.S. Mortgage Backed Securities Index.
- Provides exposure to securities issued by GNMA, FNMA, and FHLMC.
- Offers a low-cost way to access the mortgage-backed securities market.
- Generates monthly income for investors.
- Manages a diversified portfolio of mortgage-backed securities.
How Does VMBSX Make Money?
- Generates revenue through management fees charged to investors.
- Aims to replicate the performance of the Bloomberg U.S. Mortgage Backed Securities Index.
- Invests in a diversified portfolio of mortgage-backed securities to minimize risk.
- Passively managed, focusing on tracking the index rather than active security selection.
What Industry Does VMBSX Operate In?
VMBSX operates within the asset management industry, specifically focusing on fixed-income investments. The fund competes with other mortgage-backed securities funds and broader fixed-income ETFs. The industry is influenced by macroeconomic factors such as interest rates, inflation, and housing market trends. The growth of the fixed-income market is driven by investors seeking stable returns and diversification. VMBSX's low-cost structure and focus on government-backed securities position it favorably in the competitive landscape. The fund's performance is closely tied to the overall health of the U.S. economy and the mortgage market.
Who Are VMBSX's Key Customers?
- Individual investors seeking fixed-income exposure.
- Retirees looking for monthly income.
- Financial advisors allocating assets for clients.
- Institutional investors seeking diversified fixed-income portfolios.
Research confidence
Thin evidence — scoring coverage unknown. Treat this as a starting point, not a conclusion.
- ● Scoring coverage unknown
- ● Price is current
- ● No filing on record
- ● No analyst coverage
- ● This is a fund, not an operating company
VMBSX Financials
Bull Case vs Bear Case
Bull Case
- Low expense ratio attracts cost-conscious investors.
- Diversified exposure to U.S. mortgage-backed securities.
- Passive management strategy reduces operational costs.
- Strong brand reputation of Vanguard.
Bear Case
- Subject to prepayment risk, which can reduce yield.
- Limited potential for outperformance due to passive management.
- Performance tied to the U.S. housing market and interest rates.
- No active management to mitigate market downturns.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
VMBSX Latest News
No recent news available for VMBSX.
VMBSX Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations collected by Financial Modeling Prep for VMBSX.
Price Targets
Wall Street price target analysis for VMBSX.
VMBSX MoonshotScore
MoonshotScore is Stock Expert AI's proprietary 0-100 research rating, not a buy or sell recommendation. No MoonshotScore is published for VMBSX; grades run from A+ (80-100) to F (below 30).
Common Questions About VMBSX (Financials)
What are the main risks for VMBSX?
The main risks for VMBSX include prepayment risk, interest rate risk, and credit risk. Prepayment risk arises when homeowners refinance their mortgages at lower interest rates, reducing the yield on the fund. Interest rate risk refers to the potential for bond prices to decline as interest rates rise.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
MoonshotScore is not published for this security.
Data provided for informational purposes only.
- Performance is subject to market risk and fluctuations in interest rates.
- Prepayment risk can impact the fund's yield.
- The fund's investment strategy is passive and may not outperform the index.