A side-by-side comparison of Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS) and BlackRock AAA CLO ETF (CLOA) to help Canadian investors make an informed decision.
1-Year Performance
Normalised to 100 at the start — shows relative return over the trailing 12 months.
Head-to-Head Comparison
| Metric | VMBS | CLOA |
|---|---|---|
| YTD Return | -1.84% | +1.08%✓ |
| 1-Day Change | -0.81% | -0.02%✓ |
| 1-Week Change | -0.18% | -0.05%✓ |
| 1-Month Change | +1.57%✓ | -0.01% |
| Current Price | $45.26 | $51.80 |
| AUM | $16.11B✓ | $2.81B |
| MER (Expense Ratio) | 0.04%✓ | 0.19% |
| Dividend Yield | 4.18% | 4.77%✓ |
| Distribution Frequency | — | — |
| Inception Date | 2009-11-19 | 2023-01-10 |
| Holdings Count | 6 | 1 |
| MorningStar Rating | — | — |
| Category | Mortgage-Backed & Securitized Bonds | Mortgage-Backed & Securitized Bonds |
| Beta | 1.12 | 0.02 |
| 52-Week High | $46.39 | $51.97 |
| 52-Week Low | $43.79 | $49.41 |
| 50-Day MA | $45.13 | $51.87 |
| 200-Day MA | $46.38 | $51.85 |
✓ marks the better value for return/yield/AUM metrics. Lower ✓ for MER.
Annualised Returns
| Period | VMBS | CLOA |
|---|---|---|
| YTD | -1.84% | +1.08%✓ |
| 1 Year | +0.40% | +4.88%✓ |
| 3 Year | +5.36% | +6.45%✓ |
| 5 Year | +0.36% | — |
| 10 Year | +1.26% | — |
| 1Y Volatility | 5.54% | 0.41% |
| Sharpe Ratio (3Y) | 0.31 | 2.76 |
Past performance is not a guarantee of future results.
Top 10 Holdings
| 1 | Federal National Mortgage Association 2.5% | 2.25% | |
| 2 | Federal National Mortgage Association 2.43% | 1.76% | |
| 3 | Government National Mortgage Association 2.43% | 0.72% | |
| 4 | Federal National Mortgage Association | 0.64% | |
| 5 | Federal National Mortgage Association 3.43% | 0.64% | |
| 6 | Federal Home Loan Mortgage Corporation | 0.63% |
| 1 | XTSLA | BlackRock Cash Funds Treasury SL Agency | 1.55% |
Sector Weights
| Sector | VMBS | CLOA |
|---|---|---|
| Basic Materials | 0.00% | 0.00% |
| Communication Services | 0.00% | 0.00% |
| Consumer Cyclicals | 0.00% | 0.00% |
| Consumer Defensive | 0.00% | 0.00% |
| Energy | 0.00% | 0.00% |
| Financial Services | 0.00% | 0.00% |
| Healthcare | 0.00% | 0.00% |
| Industrials | 0.00% | 0.00% |
| Real Estate | 0.00% | 0.00% |
| Technology | 0.00% | 0.00% |
| Utilities | 0.00% | 0.00% |
About VMBS
The fund manager employs an indexing investment approach designed to track the performance of the Bloomberg U.S. MBS Float Adjusted Index. This index covers U.S. agency mortgage-backed pass-through securities issued by the GNMA, the FNMA, and the FHLMC. To be included in the index, pool aggregates must have at least $1 billion currently outstanding and a weighted average maturity of at least 1 year. All of the fund's investments will be selected through the sampling process, and at least 80% of …
About CLOA
The fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in U.S. dollar-denominated CLOs that are, at the time of purchase, rated AAA (or equivalent) by at least one of the major rating agencies or, if unrated, determined by the fund management team to be of similar quality. The fund may invest in CLOs of any maturity.
Which ETF is Right for You?
Both VMBS and CLOA are listed on Canadian exchanges and accessible through most Canadian brokerages including Questrade, Wealthsimple Trade, TD Direct, and Interactive Brokers.
Based on the available data, CLOA scores higher across our tracked metrics including YTD performance, dividend yield, and AUM — though both ETFs warrant individual research before investing.
- Consider your account type (TFSA, RRSP, non-registered) as it can affect dividend taxation.
- Compare management expense ratios (MER) directly on each provider's website.
- Look at average daily trading volume to assess liquidity.
- Review the fund's underlying index and holdings to ensure the exposure matches your goals.
This is not financial advice. Always do your own research or consult a licensed financial advisor before investing.
Frequently Asked Questions
What is the difference between VMBS and CLOA?
VMBS (Vanguard Mortgage-Backed Securities Index Fund ETF Shares) and CLOA (BlackRock AAA CLO ETF) are both Canadian-listed ETFs. Key differences include their AUM ($16.11B vs $2.81B), dividend yield (4.18% vs 4.77%), and year-to-date performance (-1.84% vs +1.08%).
Is VMBS better than CLOA?
There is no single "better" ETF — it depends on your investment goals. If you prioritise dividends, compare both yields and choose based on your income needs. Always review the fund's prospectus and consider your tax situation.
Can I buy VMBS and CLOA on Wealthsimple?
Most Canadian-listed ETFs are available on Wealthsimple Trade commission-free. Both VMBS and CLOA should be accessible. Check Wealthsimple's supported tickers list to confirm availability.
Free newsletter · Every Saturday morning
The Saturday TSX Wrap
The week on the TSX, in five minutes.
- The biggest gainers and losers, and why they moved
- Sector and momentum moves at a glance
- The Canadian market stories you missed