VMBS Fees and Costs — Vanguard Mortgage-Backed Securities Index Fund
Data updated: 2026-07-29
The net expense ratio is 0.03%: a 0.01% management fee plus 0.02% other expenses. There are no sales loads or redemption fees. Portfolio turnover was 91%.
VMBS Fees and Expenses
Annual operating expenses and sales charges of VMBS. Prospectus, as of August 31, 2025.
| Annual operating expenses | |
|---|---|
| Management fee | 0.01% |
| 12b-1 fee | 0.00% |
| Other expenses | 0.02% |
| Gross expense ratio | 0.03% |
| Fee waiver | — |
| Net expense ratio | 0.03% |
| Sales charges | |
|---|---|
| Max front load | — |
| Max deferred load | — |
| Redemption fee | — |
| Expense limitation in place (N-CEN) | No |
| Fees waived or reduced during the year | No |
| Waived fees subject to recoupment | No |
VMBS Costs Over Time
On $10,000 invested in VMBS, assuming 5% a year before costs, total costs come to $19 over 5 years, cutting the return by 0.03% a year. Illustration, not a forecast: it assumes today's net expense ratio throughout (a fee waiver may end).
| $10,000 invested | Sell after 1 year | Sell after 3 years | Sell after 5 years |
|---|---|---|---|
| Value before costs | $10,500 | $11,576 | $12,763 |
| Fund expenses (net expense ratio 0.03%) | $3 | $10 | $17 |
| Lost growth on money paid in costs | $0 | $0 | $2 |
| Total costs | $3 | $10 | $19 |
| Value after costs | $10,497 | $11,566 | $12,744 |
| Impact on return, per year | 0.03% | 0.03% | 0.03% |
VMBS Trading Costs
Brokerage costs reported on SEC Form N-CEN for the fiscal year ending August 31, 2025.
- Explicit cost rate (commissions ÷ average net assets): —
- Total broker commissions: —
- Bought from dealers (principal trades, not a cost): $48.6B
- Portfolio turnover (prospectus): 91%
- Securities lending: none during the year
VMBS Dealer Counterparties
Securities bought directly from dealers (principal trades).
| Broker | Amount | Share |
|---|---|---|
| Vanguard Market Liquidity Fund | $10.5B | 25.62% |
| MORGAN STANLEY | $5.8B | 14.06% |
| WELLS FARGO & COMPANY | $5.5B | 13.29% |
| Bank of Montr??al | $4.3B | 10.54% |
| Stonex Group Inc. | $3.2B | 7.83% |
| JPMORGAN CHASE & CO. | $2.9B | 7.08% |
| BANK OF AMERICA CORPORATION | $2.7B | 6.57% |
| THE GOLDMAN SACHS GROUP, INC. | $2.4B | 5.79% |
| CITIGROUP INC. | $1.9B | 4.71% |
| Mizuho Financial Group, Inc. | $1.9B | 4.51% |
Vanguard Mortgage-Backed Securities Index Fund Share Classes
Net expense ratio and maximum front-end load of each share class, cheapest first.
| Ticker | Class | Net expense ratio | Front load |
|---|---|---|---|
| VMBIX | Institutional Shares | 0.02% | — |
| VMBS | ETF Shares | 0.03% | — |
| VMBSX | Admiral Shares | 0.04% | — |
For information only. Not investment advice: figures are as reported in SEC filings and may contain errors or be out of date. Past performance does not guarantee future results.