Skip to content
etf.net

TSEC vs VMBS

Touchstone Securitized Income ETF

TSECCNYSE Arca

Vanguard Mortgage-Backed Securities ETF

VMBSANasdaq

Overlap

No data

Expense ratio

VMBS −0.37pt a year

TSEC0.40%VMBS0.03%

Avg volume · 30D

VMBS 40.5×the volume

TSEC45.7KVMBS1.85M

3Y return · a year

TSEC +0.2pt

TSEC+6.7%VMBS+6.5%

TSEC vs VMBS Performance

Oct 31, 2025 – Oct 30, 2026

+3.2%TSEC+0.9%VMBS

Oct 31, 2025 to Oct 30, 2026. TSEC +3.2%. VMBS +0.9%. Use the arrow keys to read each point.−2%−1%0%2%4%Oct 2025Apr 2026Oct 2026
Expense ratio
TSEC 0.40%
VMBS 0.03%, better
Fund size
TSEC $171M
VMBS $17.1B
1Y total return
TSEC +3.2%, better
VMBS +0.9%
Yield (12M)
TSEC 7.49%, better
VMBS 4.31%
Holdings
TSEC 142
VMBS 4924
Avg volume (30D)
TSEC 45.7K sh
VMBS 1.85M sh, better
NAV per share
TSEC $25.03
VMBS $45.51
52W range

ETF.net Grade

TSEC: Cost 44, Risk 85, Mission 8, Tradability 25, Holdings 58, Durability 47. VMBS: Cost 94, Risk 36, Mission 64, Tradability 63, Holdings 86, Durability 92.
Pillar letters and Scores for TSEC, VMBS, with each pillar’s weight
PillarTSECVMBS
Cost30% weightC44A94Higher
Mission25% weightF8B64Higher
Risk15% weightA85HigherD36
Tradability15% weightD25B63Higher
Holdings10% weightB58A86Higher
Durability5% weightC47A92Higher

Rank among Mortgage-Backed Securities funds

How we build Categories ›
Same Category. Both funds are graded against the same funds, so their Grades compare head to head.

Same Category. TSEC and VMBS are both graded against the same 24 Mortgage-Backed Securities funds, so their Grades compare head to head.

Mortgage-Backed Securities⁠

Category · 24 funds
See all 24 ›

VMBS ranks 3rd and TSEC 17th of 24 funds in the Mortgage-Backed Securities Category.

  1. Rank 1ASPMBState Street SPDR Portfolio Mortgage Backed Bond ETFScore 75
  2. Rank 2AMBBiShares MBS ETFScore 73
  3. Rank 3AVMBSVanguard Mortgage-Backed Securities ETFScore 72
  4. Rank 4ASMBSSchwab Mortgage-Backed Securities ETFScore 70
  5. Rank 16CMTGPWisdomTree Mortgage Plus Bond FundScore 40
  6. Rank 17CTSECTouchstone Securitized Income ETFScore 39
  7. Rank 18DCAAAFirst Trust AAA CMBS ETFScore 35

Our read on each fund

ETF.net Research

TSECCTouchstone Securitized Income ETF

VMBSAVanguard Mortgage-Backed Securities ETF

In short

TSEC Most mortgage-bond ETFs are cheap index trackers stuffed with agency paper. TSEC goes the other way: an active book run by Fort Washington that roams the whole securitized market, from home and commercial mortgages to asset-backed deals and CLOs.

VMBS The plumbing of the U.S. housing market in one ticker: pooled home loans from Ginnie, Fannie and Freddie, tracked by index for 0.03% a year, with income paid monthly.

Stated mandate

TSEC The Fund pursues combined income and capital growth, with a normal-market commitment of at least 80% of assets to securitized fixed-income securities.

VMBS The fund seeks moderate and sustainable current income by investing primarily in U.S. agency mortgage-backed pass-through securities issued by GNMA, FNMA, and FHLMC.

Why people hold it

  • TSEC Hunts across the full securitized market: residential and commercial mortgages, asset-backed deals and CLOs, plus Treasuries and agency paper. Index rivals mostly stop at agency mortgages.prnewswire.com
  • Actively managed and sub-advised by Fort Washington, Touchstone's affiliated bond manager, with a fully transparent portfolio.westernsouthern.comprnewswire.com
  • Built around income and pays monthly, with at least 80% of assets committed to securitized fixed income.
  • VMBS 0.03% a year is the cheap end of the mortgage-bond aisle: SPMB and MBB charge 0.04%, JMTG 0.24%, and the typical peer runs far higher.
  • Agency pass-throughs from GNMA, FNMA and FHLMC. Credit isn't the main variable here; rates and mortgage behavior are.vanguard.com
  • Trading since 2009, a multi-billion-dollar fund holding roughly 300 pools and paying monthly. Boring in the way bond ballast is supposed to be.
  • Sits in the top quartile of its mortgage-bond peer group, one of the stronger builds in a crowded, look-alike category.

Worth knowing

  • TSEC Charges 0.73% a year against a category median near 0.35%. Index heavyweights VMBS and MBB run 0.03% and 0.04%.
  • Thinly traded next to the category's giants, so the gap between buy and sell prices can run wider.
  • The Bloomberg U.S. Aggregate is a yardstick here, not a target. This is a securitized-only book that can behave very differently from the broad bond market.westernsouthern.com
  • VMBS Mortgages don't keep a schedule. Homeowners refinance when rates fall, returning cash to reinvest at lower yields; when rates rise, payoffs slow and bonds stretch out.vanguard.com
  • The mandate is current income from one slice of the bond market. No Treasuries, no corporates, no equity kicker.
  • Share prices move with interest rates, so this behaves like a bond fund, not a cash parking spot.vanguard.com

Full TSEC profile⁠

Full VMBS profile⁠

TSEC vs VMBS Holdings

How we measure overlap

Each holding counts at its smaller weight in the two funds, summed over the full Holdings. Sector, country and asset class use the same rule on each fund’s split. Cash, FX and derivative lines stay out of the counts. Two bond funds get no overlap figure.

TSEC vs VMBS Cost

Overpaying TSEC vs VMBS

$7,452

On $10,000 over 30 years. 7% growth a year before fees, expense ratio only.

  • TSEC 0.40%

    $8,090

  • VMBS 0.03%

    $638

$10,000
30 years

Cost over time

  • TSEC 0.40%
  • VMBS 0.03%
  • Overpaying
One line per fund, from year 0 to year 30. Use the arrow keys to read each point.$0$2K$4K$6K$8K$10K051015202530TSEC $8,090VMBS $638

Year by year

YearTSECVMBSOverpaying
10$723$55$668
20$2,793$216$2,577
30$8,090$638$7,452

Expense ratio

  • 0.40%TSEC
  • 0.03%VMBS, cheaper
  • Middle half of Mortgage-Backed Securities funds
  • Median 0.38%

VMBS cheapest of 24 funds

TSEC 15th cheapest of 24 funds

TSEC vs VMBS Dividends

Last 12 months to Oct 30, 2026
Yield (12M)
TSEC 7.49%, better
VMBS 4.31%
Payout (12M)
TSEC $1.88
VMBS $1.97
Last payment
TSEC $0.15
VMBS $0.16
Ex-dividend
TSEC Oct 29, 2026
VMBS Oct 1, 2026
Paid on
TSEC Oct 30, 2026
VMBS Oct 5, 2026
Frequency
TSEC Monthly
VMBS Monthly

Distribution history

Per share, 2023 to 2026, same scale for both

TSECMonthly · 41 paymentsAll TSEC payments⁠
One bar per payment. 41 payments from 2023 to 2026 YTD. Aug 30, 2023 $0.19; Sep 27, 2023 $0.15; Oct 30, 2023 $0.09; Nov 29, 2023 $0.15; Dec 27, 2023 $0.15; Jan 30, 2024 $0.08; Feb 28, 2024 $0.12; Mar 28, 2024 $0.12; Apr 29, 2024 $0.13; May 30, 2024 $0.12; Jun 27, 2024 $0.11; Jul 30, 2024 $0.11; Aug 29, 2024 $0.13; Sep 27, 2024 $0.11; Oct 30, 2024 $0.15; Nov 27, 2024 $0.11; Dec 11, 2024 $0.05; Dec 30, 2024 $0.17; Jan 30, 2025 $0.10; Feb 27, 2025 $0.10; Mar 28, 2025 $0.10; Apr 29, 2025 $0.13; May 29, 2025 $0.10; Jun 27, 2025 $0.14; Jul 30, 2025 $0.11; Aug 28, 2025 $0.22; Sep 29, 2025 $0.15; Oct 30, 2025 $0.16; Nov 26, 2025 $0.14; Dec 11, 2025 $0.06; Dec 30, 2025 $0.17; Jan 29, 2026 $0.12; Feb 26, 2026 $0.19; Mar 30, 2026 $0.13; Apr 29, 2026 $0.16; May 28, 2026 $0.12; Jun 29, 2026 $0.16; Jul 30, 2026 $0.16; Aug 28, 2026 $0.14; Sep 29, 2026 $0.17; Oct 29, 2026 $0.15. Use the arrow keys to read each point.$0$0.2520232026YTD
VMBSMonthly · 45 paymentsAll VMBS payments⁠
One bar per payment. 45 payments from 2023 to 2026 YTD. Feb 1, 2023 $0.11; Mar 1, 2023 $0.12; Apr 3, 2023 $0.12; May 1, 2023 $0.12; Jun 1, 2023 $0.13; Jul 3, 2023 $0.13; Aug 1, 2023 $0.13; Sep 1, 2023 $0.13; Oct 2, 2023 $0.14; Nov 1, 2023 $0.13; Dec 1, 2023 $0.14; Dec 22, 2023 $0.14; Feb 1, 2024 $0.14; Mar 1, 2024 $0.15; Apr 1, 2024 $0.15; May 1, 2024 $0.15; Jun 3, 2024 $0.15; Jul 1, 2024 $0.15; Aug 1, 2024 $0.15; Sep 3, 2024 $0.15; Oct 1, 2024 $0.15; Nov 1, 2024 $0.15; Dec 2, 2024 $0.15; Dec 24, 2024 $0.15; Feb 3, 2025 $0.16; Mar 3, 2025 $0.16; Apr 1, 2025 $0.16; May 1, 2025 $0.20; Jun 2, 2025 $0.16; Jul 1, 2025 $0.16; Aug 1, 2025 $0.16; Sep 2, 2025 $0.17; Oct 1, 2025 $0.15; Nov 3, 2025 $0.17; Dec 1, 2025 $0.16; Dec 18, 2025 $0.16; Feb 2, 2026 $0.16; Mar 2, 2026 $0.16; Apr 1, 2026 $0.16; May 1, 2026 $0.16; Jun 1, 2026 $0.16; Jul 1, 2026 $0.16; Aug 3, 2026 $0.17; Sep 1, 2026 $0.17; Oct 1, 2026 $0.16. Use the arrow keys to read each point.$0$0.2520232026YTD

TSEC vs VMBS Risk

Fall from peak · 5 years

This chart needs five years of history for both funds.

Risk facts

VolatilityStd dev, 3 years
TSEC 2.5%, betterVMBS 6.3%
Return per unit of riskSharpe ratio, 3 years
TSEC 0.86, betterVMBS 0.33
Worst fallMax drawdown, 5 years
TSEC −1.7%since Jul 2023VMBS −16.9%
Market sensitivityBeta, 5 years
TSEC 0.08VMBS 1.12

TSEC and VMBS in the news

All news⁠

Popular comparisons

  • TSECCvsSPMBA

    Touchstone Securitized Income ETF · State Street SPDR Portfolio Mortgage Backed Bond ETF

    Expense ratio
    0.40% · 0.04%
    Category
    Same Category. Both funds are graded against the same funds, so their Grades compare head to head.

  • VMBSAvsSPMBA

    Vanguard Mortgage-Backed Securities ETF · State Street SPDR Portfolio Mortgage Backed Bond ETF

    Expense ratio
    0.03% · 0.04%
    Category
    Same Category. Both funds are graded against the same funds, so their Grades compare head to head.

  • TSECCvsMBBA

    Touchstone Securitized Income ETF · iShares MBS ETF

    Expense ratio
    0.40% · 0.04%
    Category
    Same Category. Both funds are graded against the same funds, so their Grades compare head to head.

  • VMBSAvsMBBA

    Vanguard Mortgage-Backed Securities ETF · iShares MBS ETF

    Expense ratio
    0.03% · 0.04%
    Category
    Same Category. Both funds are graded against the same funds, so their Grades compare head to head.

  • TSECCvsSMBSA

    Touchstone Securitized Income ETF · Schwab Mortgage-Backed Securities ETF

    Expense ratio
    0.40% · 0.03%
    Category
    Same Category. Both funds are graded against the same funds, so their Grades compare head to head.

  • VMBSAvsSMBSA

    Vanguard Mortgage-Backed Securities ETF · Schwab Mortgage-Backed Securities ETF

    Expense ratio
    0.03% · 0.03%
    Category
    Same Category. Both funds are graded against the same funds, so their Grades compare head to head.