What Is VMBS? Vanguard Mortgage-Backed Securities Index Fund ETF Shares
Last updated July 2026
Short answer
VMBS is Vanguard Mortgage-Backed Securities Index Fund ETF Shares, an ETF that tracks a US mortgage-backed securities index at a 0.03% expense ratio. VMBS holds US mortgage-backed securities, bundled into one ticker. It charges 0.03%. It distributes about 4.17%, and that payout moves with rates rather than being fixed. It launched in 2009.
VMBS is issued by Vanguard and tracks a US mortgage-backed securities index. It charges a 0.03% expense ratio, holds approximately $17.3B in assets under management, yields about 4.17%, and launched in 2009.
What is VMBS?
VMBS is Vanguard Mortgage-Backed Securities Index Fund ETF Shares, an ETF that tracks a US mortgage-backed securities index at a 0.03% expense ratio. VMBS holds US mortgage-backed securities, bundled into one ticker. It charges 0.03%. It distributes about 4.17%, and that payout moves with rates rather than being fixed. It launched in 2009.
VMBS is issued by Vanguard and tracks a US mortgage-backed securities index, so a single ticker gives you the whole portfolio of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
What does VMBS hold?
VMBS does not hold a basket of individual stocks. It gets its exposure synthetically, through derivatives such as swaps and futures rather than by owning the underlying shares, so there is no conventional top-10 equity holdings list. See the description above for what VMBS actually tracks and how that exposure is built.
How do I invest in VMBS?
There are three common ways to get VMBS exposure. Buy shares (or fractional shares) of VMBS directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so VMBS sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. VMBS trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is VMBS a good buy?
Whether VMBS is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks a US mortgage-backed securities index, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is VMBS a buy?
The bottom line on VMBS
VMBS gives you a US mortgage-backed securities index exposure in one ticker at a 0.03% expense ratio. Most investors use it as a core holding and layer more concentrated thematic portfolios on top.
More on VMBS
Whether VMBS is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is VMBS a buy?
VMBS yields 4.17% as of August 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see VMBS dividend: yield and schedule.
New to funds like VMBS? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how VMBS fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in VMBS with AI
Connect the broker you already use and ask Walnut's AI how VMBS fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is VMBS's ticker symbol?
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VMBS, Vanguard Mortgage-Backed Securities Index Fund ETF Shares. Issued by Vanguard; tracks a US mortgage-backed securities index. Trades during US market hours, available at every major US brokerage.
What is VMBS's expense ratio?
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0.03% as of August 2026.
What are VMBS's top holdings?
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Top holdings as of August 2026: and others. See the full holdings table above.
How can I invest in VMBS through Walnut?
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Walnut isn't a broker. Connect a brokerage and Walnut sits on top to help you build and track thematic portfolios. VMBS can be a constituent alongside individual stocks.
How do I compare VMBS to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. VMBS's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to August 2026; verify current figures against Vanguard's fund page or your broker before investing.