A side-by-side comparison of Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS) and iShares GNMA Bond ETF (GNMA) 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 | GNMA |
|---|---|---|
| YTD Return | -3.75%✓ | -4.03% |
| 1-Day Change | -0.07%✓ | -0.22% |
| 1-Week Change | -0.56% | -0.52%✓ |
| 1-Month Change | -3.14% | -3.34%✓ |
| Current Price | $44.38 | $41.77 |
| AUM | $15.65B✓ | $419M |
| MER (Expense Ratio) | 0.04%✓ | 0.1% |
| Dividend Yield | 4.25% | 4.31%✓ |
| Distribution Frequency | NA | NA |
| Inception Date | 2009-11-19 | 2012-02-14 |
| Holdings Count | 6 | 1 |
| MorningStar Rating | ★★★ | ★★★ |
| Category | Government Mortgage-Backed Bond | Government Mortgage-Backed Bond |
| Beta | 1.12 | 1.08 |
| 52-Week High | $46.57 | $44.25 |
| 52-Week Low | $44.09 | $41.15 |
| 50-Day MA | $45.85 | $43.26 |
| 200-Day MA | $46.68 | $44.12 |
✓ marks the better value for return/yield/AUM metrics. Lower ✓ for MER.
Annualised Returns
| Period | VMBS | GNMA |
|---|---|---|
| YTD | -3.75%✓ | -4.03% |
| 1 Year | -0.42%✓ | -1.28% |
| 3 Year | +4.82%✓ | +4.28% |
| 5 Year | -0.08%✓ | -0.17% |
| 10 Year | +0.98%✓ | +0.75% |
| 1Y Volatility | 3.05% | 3.09% |
| Sharpe Ratio (3Y) | 0.05 | -0.01 |
Past performance is not a guarantee of future results.
Top 10 Holdings
| 1 | Federal National Mortgage Association 2.5% | 2.26% | |
| 2 | Federal National Mortgage Association 2.43% | 1.76% | |
| 3 | Government National Mortgage Association 2.43% | 0.69% | |
| 4 | Federal National Mortgage Association | 0.65% | |
| 5 | Federal National Mortgage Association 3.43% | 0.65% | |
| 6 | Federal Home Loan Mortgage Corporation | 0.64% |
| 1 | XTSLA | BlackRock Cash Funds Treasury SL Agency | 8.88% |
Sector Weights
| Sector | VMBS | GNMA |
|---|---|---|
| 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 GNMA
The fund will invest at least 80% of its assets in the component securities of the underlying index and to-be-announced transactions ("TBAs") that have economic characteristics that are substantially identical to the economic characteristics of the component securities of the underlying index. The underlying index includes fixed-rate MBS issued by GNMA that have 30- or 15-year maturities. The index measures the performance of mortgage-backed pass-through securities issued by GNMA.
Which ETF is Right for You?
Both VMBS and GNMA 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, VMBS 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 GNMA?
VMBS (Vanguard Mortgage-Backed Securities Index Fund ETF Shares) and GNMA (iShares GNMA Bond ETF) are both Canadian-listed ETFs. Key differences include their AUM ($15.65B vs $419M), dividend yield (4.25% vs 4.31%), and year-to-date performance (-3.75% vs -4.03%).
Is VMBS better than GNMA?
There is no single "better" ETF — it depends on your investment goals. If you prioritise recent performance, VMBS has outperformed year-to-date. Always review the fund's prospectus and consider your tax situation.
Can I buy VMBS and GNMA on Wealthsimple?
Most Canadian-listed ETFs are available on Wealthsimple Trade commission-free. Both VMBS and GNMA should be accessible. Check Wealthsimple's supported tickers list to confirm availability.
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