MBS vs VOO
MBS vs VOO
Angel Oak Mortgage-Backed Securities ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | MBS | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.03% | |
| AUM | $148M | $979.0B | |
| Dividend Yield | 5.12% | 1.09% | |
| Holdings | 126 | 509 | |
| YTD Return | +0.32% | +13.80% | |
| 1Y Return | +3.95% | +23.71% | |
| 3Y Return (annualized) | - | +21.50% | |
| 5Y Return (annualized) | - | +13.44% | |
| Volatility (annualized) | 4.6% | 14.1% | |
| Max Drawdown | -4.1% | -34.3% | |
| Fund Family | Angel Oak Capital Advisors | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 20, 2024 | Sep 7, 2010 |
MBS vs VOO Performance
Angel Oak Mortgage-Backed Securities ETF (MBS) is a ETF from Angel Oak Capital Advisors and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year MBS returned +3.95% while VOO returned +23.71%. Year to date, MBS is up 0.32% versus a gain of 13.80% for VOO.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 4.6% for MBS. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -4.1% for MBS and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBS charges 0.49% per year while VOO charges 0.03%. On a $10,000 position that is $49 vs $3 annually, a gap of $46 per year that compounds over a long holding period. On income, MBS currently yields 5.12% against 1.09% for VOO.
Holdings Overlap
MBS and VOO share 0 holdings out of 523 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MBS or VOO?
MBS has an expense ratio of 0.49% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, MBS or VOO?
Over the past year MBS returned +3.95% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), MBS annualized +5.73% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, MBS or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 4.6% for MBS. Worst drawdown: MBS -4.1% vs VOO -34.3%.
Should I hold both MBS and VOO?
MBS and VOO have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBS and VOO?
MBS and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 523 unique securities.
Which pays a higher dividend, MBS or VOO?
MBS yields 5.12% while VOO yields 1.09%, so MBS currently pays the higher dividend yield.
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