MBS vs VYM
MBS vs VYM
Angel Oak Mortgage-Backed Securities ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | MBS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.04% | |
| AUM | $148M | $79.0B | |
| Dividend Yield | 5.12% | 2.86% | |
| Holdings | 126 | 568 | |
| YTD Return | +0.32% | +15.80% | |
| 1Y Return | +3.95% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 4.6% | 14.6% | |
| Max Drawdown | -4.1% | -58.8% | |
| Fund Family | Angel Oak Capital Advisors | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 20, 2024 | Nov 10, 2006 |
MBS vs VYM Performance
Angel Oak Mortgage-Backed Securities ETF (MBS) is a ETF from Angel Oak Capital Advisors and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MBS returned +3.95% while VYM returned +26.12%. Year to date, MBS is up 0.32% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBS charges 0.49% per year while VYM charges 0.04%. On a $10,000 position that is $49 vs $4 annually, a gap of $45 per year that compounds over a long holding period. On income, MBS currently yields 5.12% against 2.86% for VYM.
Holdings Overlap
MBS and VYM share 0 holdings out of 576 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 VYM?
MBS has an expense ratio of 0.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, MBS or VYM?
Over the past year MBS returned +3.95% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), MBS annualized +5.73% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, MBS or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.6% for MBS. Worst drawdown: MBS -4.1% vs VYM -58.8%.
Should I hold both MBS and VYM?
MBS and VYM have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBS and VYM?
MBS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 576 unique securities.
Which pays a higher dividend, MBS or VYM?
MBS yields 5.12% while VYM yields 2.86%, so MBS currently pays the higher dividend yield.
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