MBSX vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricMBSXVYMWinner
Expense Ratio0.40%0.04%
AUM$20M$79.0B
Dividend Yield3.59%2.86%
Holdings84568
YTD Return-0.43%+16.53%
1Y Return+3.87%+25.03%
3Y Return (annualized)-+18.54%
5Y Return (annualized)-+12.25%
Volatility (annualized)36.3%14.6%
Max Drawdown-27.6%-58.8%
Fund FamilyRegan CapitalVanguard (US)
CategoryFixed IncomeEquity
InceptionMay 1, 2025Nov 10, 2006

MBSX vs VYM Performance

Regan Fixed Rate MBS ETF (MBSX) is a ETF from Regan Capital and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MBSX returned +3.87% while VYM returned +25.03%. Year to date, MBSX is down 0.43% versus a gain of 16.53% for VYM.

Risk: Volatility and Drawdowns

MBSX has been the more volatile fund, with annualized monthly volatility of 36.3% compared with 14.6% for VYM. 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 -27.6% for MBSX 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 -0.04. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MBSX charges 0.40% per year while VYM charges 0.04%. On a $10,000 position that is $40 vs $4 annually, a gap of $36 per year that compounds over a long holding period. On income, MBSX currently yields 3.59% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

MBSX and VYM share 0 holdings out of 561 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, MBSX or VYM?

MBSX has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $36 per year of difference.

Which performed better, MBSX or VYM?

Over the past year MBSX returned +3.87% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), MBSX annualized +6.56% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, MBSX or VYM?

MBSX has been the more volatile fund at 36.3% annualized versus 14.6% for VYM. Worst drawdown: MBSX -27.6% vs VYM -58.8%.

Should I hold both MBSX and VYM?

MBSX and VYM have a monthly-return correlation of -0.04, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MBSX and VYM?

MBSX and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 561 unique securities.

Which pays a higher dividend, MBSX or VYM?

MBSX yields 3.59% while VYM yields 2.86%, so MBSX currently pays the higher dividend yield.

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