Question 1

What is VMBS?

Accepted Answer

VMBS — Vanguard Mortgage-Backed Securities Index Fund ETF Shares — is a Canadian-listed ETF trading on the NASDAQ. 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 yea…

Question 2

What is the VMBS ETF price today?

Accepted Answer

VMBS last traded at $44.38 CAD on the NASDAQ. See the price chart above for recent performance.

Question 3

What is the VMBS MER (management expense ratio)?

Accepted Answer

VMBS has a management expense ratio (MER) of 0.04% per year. This fee is automatically deducted from the fund's assets, so you never pay it directly — but it does reduce your net returns over time. At 0.04%, VMBS is considered a low-cost ETF.

Question 4

What are VMBS annualised returns?

Accepted Answer

VMBS historical returns: YTD: -3.75%, 1-year: -0.42%, 3-year annualised: +4.82%, 5-year annualised: -0.08%, 10-year annualised: +0.98%. Past performance is not a guarantee of future results. The 3-year Sharpe ratio is 0.05, which measures risk-adjusted return.

Question 5

Does VMBS pay dividends or distributions?

Accepted Answer

Yes, VMBS distributes income to unitholders. The current distribution yield is approximately 4.25%, paid na. Distributions may include dividends, interest, capital gains, or return of capital depending on the fund's holdings. In a TFSA or RRSP, distributions are sheltered from tax.

Question 6

What does VMBS invest in?

Accepted Answer

VMBS's top holdings include Federal National Mortgage Association 2.5% (null, 2.3%), Federal National Mortgage Association 2.43% (null, 1.8%), Government National Mortgage Association 2.43% (null, 0.7%), Federal National Mortgage Association (null, 0.6%), Federal National Mortgage Association 3.43% (null, 0.6%) — and 1 more positions. See the full Top 10 Holdings table above for a complete breakdown.

Question 7

What sectors does VMBS invest in?

Accepted Answer

VMBS's largest sector exposures are Energy (0.0%), Utilities (0.0%), Healthcare (0.0%). The full sector breakdown is shown in the Sector Weights table on this page.

Question 8

How large is VMBS? (Assets under management)

Accepted Answer

VMBS has approximately $15.65B in assets under management (AUM). Larger AUM generally means better liquidity, tighter bid-ask spreads, and a lower risk of the fund being wound down.

Question 9

When was VMBS launched?

Accepted Answer

VMBS was launched on November 19, 2009, giving it a 17-year track record. A longer history makes it easier to evaluate how the ETF performs across different market cycles.

Question 10

How do I buy VMBS in Canada?

Accepted Answer

VMBS trades on the NASDAQ under the ticker VMBS. You can buy it through any Canadian brokerage, including Wealthsimple Trade (commission-free), Questrade, TD Direct Investing, RBC Direct, and CIBC Investor's Edge. It can be held in a TFSA, RRSP, FHSA, or taxable account.

Question 11

How risky is VMBS?

Accepted Answer

VMBS has a 1-year volatility of 3.05% and a beta of 1.12 (more volatile than the broad market). Its 3-year Sharpe ratio of 0.05 indicates below-average risk-adjusted returns. As with all market-linked investments, past volatility does not predict future risk.

Date	Open	High	Low	Close	Adj Close	Volume
2026-10-01	$44.41	$44.50	$44.09	$44.38	$44.38	5,565,700
2026-09-30	$44.53	$44.59	$44.30	$44.41	$44.41	4,004,004
2026-09-29	$44.51	$44.58	$44.30	$44.45	$44.45	3,643,702
2026-09-28	$44.60	$44.66	$44.43	$44.53	$44.53	2,621,705
2026-09-25	$44.71	$44.84	$44.54	$44.82	$44.82	4,312,400
2026-09-24	$45.05	$45.05	$44.63	$44.63	$44.63	2,809,424
2026-09-23	$45.26	$45.29	$44.78	$44.90	$44.90	2,583,757
2026-09-22	$45.42	$45.49	$45.31	$45.37	$45.37	4,071,243
2026-09-21	$45.30	$45.43	$45.30	$45.39	$45.39	2,547,283
2026-09-18	$45.32	$45.32	$45.23	$45.25	$45.25	1,340,000

#	Name	Weight
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%

Sector	Weight
Energy	0.00%
Utilities	0.00%
Healthcare	0.00%
Technology	0.00%
Industrials	0.00%
Real Estate	0.00%
Basic Materials	0.00%
Consumer Cyclicals	0.00%
Consumer Defensive	0.00%
Financial Services	0.00%
Communication Services	0.00%

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CIBC Investor's Edge

Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS : NASDAQ)

Price Chart (30 Days)

Key Statistics

Recent Price History

Annualised Returns

Top 10 Holdings

Sector Weights

About Vanguard Mortgage-Backed Securities Index Fund ETF Shares

ETF Details

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Frequently Asked Questions — VMBS