(VMBS) Vanguard Mortgage-Backed - Ratings and Ratios

The Vanguard Mortgage-Backed Securities Index Fund ETF Shares (NASDAQ:VMBS) is an exchange-traded fund that tracks the Bloomberg U.S. MBS Float Adjusted Index, providing exposure to U.S. agency mortgage-backed securities issued by GNMA, FNMA, and FHLMC. The funds investment approach is based on sampling, with at least 80% of its assets invested in bonds included in the index, which comprises pool aggregates with at least $1 billion outstanding and a weighted average maturity of at least 1 year.

Key performance indicators (KPIs) for VMBS include its ability to provide stable income through mortgage-backed securities, with a relatively low risk profile due to its focus on high-quality, government-backed securities. The funds yield is likely to be influenced by interest rate movements and the overall mortgage market. With an AUM of $14.4 billion, VMBS has a significant presence in the market, and its liquidity is likely to be supported by its ETF structure. The funds tracking error, expense ratio, and average duration are additional KPIs that investors may consider when evaluating its performance.

From a trading perspective, VMBS has a relatively stable price action, with a 20-day SMA of $45.94 and a 50-day SMA of $45.56, indicating a stable trend. The funds ATR of 0.15 (0.33%) suggests relatively low volatility. Investors may also consider the funds correlation with other asset classes, such as interest rate-sensitive securities or equities, when evaluating its potential role in a diversified portfolio.