MBS vs VTI
Angel Oak Mortgage-Backed Securities ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, MBS or VTI?
VTI has been ahead.
VTI has a lower expense ratio. VTI led over 1Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | MBS | VTI |
|---|---|---|
| Expense Ratio | 0.49% | 0.03%Best |
| AUM | $153M | $666.9B |
| Dividend Yield | 5.60% | 1.03% |
| Holdings | 133 | 3,543 |
| YTD Return | -0.75% | +11.53%Best |
| 1Y Return | +0.91% | +15.74%Best |
| 3Y Return (annualized) | - | +20.67% |
| 5Y Return (annualized) | - | +11.59% |
| Volatility (annualized) | 4.6%Best | 12.3% |
| Max Drawdown | -4.1%Best | -19.3% |
| $10,000 over 2.6 years | $11,364 | $15,671Best |
| Fund Family | Angel Oak Capital Advisors | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Blend |
| Inception | Feb 20, 2024 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.6 years row, are measured over the window both funds cover: Feb 20, 2024 to Sep 15, 2026 (2.6 years).
MBS vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.6 years both funds cover.
MBS vs VTI Performance
Angel Oak Mortgage-Backed Securities ETF (MBS) is an ETF from Angel Oak Capital Advisors and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year MBS returned +0.91% while VTI returned +15.74%. Year to date, MBS is down 0.75% versus a gain of 11.53% for VTI.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 12.3% 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 -19.3% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.39. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MBS charges 0.49% per year while VTI 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 5.60% against 1.03% for VTI.
Holdings Overlap
We hold position weights for 19 holdings in MBS and 3,463 in VTI, totalling 26.9% and 98.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 19 positions we hold weights for in MBS and 3,463 in VTI, against full books of 133 and 3,543.
You are not choosing between two funds in isolation.
Whichever of MBS and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MBS or VTI?
MBS has an expense ratio of 0.49% while VTI charges 0.03%. VTI is the cheaper option, by $46 a year on a $10,000 investment.
Which performed better, MBS or VTI?
Over the past year MBS returned +0.91% vs +15.74% for VTI, so VTI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MBS or VTI?
VTI has been the more volatile fund at 12.3% annualized versus 4.6% for MBS. Worst drawdown: MBS -4.1% vs VTI -19.3%.
Should I hold both MBS and VTI?
MBS and VTI have a monthly-return correlation of 0.39, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, MBS or VTI?
MBS yields 5.60% while VTI yields 1.03%, so MBS currently pays the higher dividend yield.
Is VTI better than MBS?
VTI has a lower expense ratio. VTI led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.