Vanguard Short Duration Tax-Exempt Bond ETF (VSDM)

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The chart shows the growth of an initial investment of $10,000 in Vanguard Short Duration Tax-Exempt Bond ETF, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends.

Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) has returned 0.30% so far this year and 4.41% over the past 12 months.

Based on dividend-adjusted daily data since Nov 21, 2024, VSDM's average daily return is +0.02%, while the average monthly return is +0.32%. At this rate, your investment would double in approximately 18.1 years.

Historically, 76% of months were positive and 24% were negative. The best month was Feb 2025 with a return of +0.9%, while the worst month was Mar 2026 at -1.2%. The longest winning streak lasted 10 consecutive months, and the longest losing streak was 2 months.

On a daily basis, VSDM closed higher 59% of trading days. The best single day was Apr 14, 2025 with a return of +0.4%, while the worst single day was Apr 8, 2025 at -1.1%.

Vanguard Short Duration Tax-Exempt Bond ETF has an annualized alpha of 4.07%, beta of 0.01, and R² of 0.00 versus S&P 500 Index. Calculated based on daily prices since November 22, 2024.

• This ETF participates in less of S&P 500 Index's moves in both directions, but captures a larger share of gains (18.95%) than losses (1.47%) — typical of diversified or defensive assets.
• Beta of 0.01 may look defensive, but with R² of 0.00 this ETF is largely uncorrelated with S&P 500 Index — low beta reflects independence, not downside protection. See the Volatility section for a true picture of this ETF's risk.
• R² of 0.00 means this ETF moves largely independently of S&P 500 Index — capture ratios reflect limited market correlation rather than active downside protection. Consider using a more representative benchmark.

VSDM has an expense ratio of 0.12%, which is considered low.

VSDM ranks 88 for risk / return — in the top 88% of ETFs on our site. This means strong returns relative to risk — exactly what professional investors look for. Well-suited for investors who want to maximize return per unit of risk.

The table below present risk-adjusted performance metrics for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and compare them to a chosen benchmark (S&P 500 Index).

Vanguard Short Duration Tax-Exempt Bond ETF provided a 3.05% dividend yield over the last twelve months, with an annual payout of $2.33 per share.

The table displays the monthly dividend distributions for Vanguard Short Duration Tax-Exempt Bond ETF. The dividends shown in the table have been adjusted to account for any splits that may have occurred.

The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.

The table below displays the maximum drawdowns of the Vanguard Short Duration Tax-Exempt Bond ETF. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.

The maximum drawdown for the Vanguard Short Duration Tax-Exempt Bond ETF was 1.81%, occurring on Apr 11, 2025. Recovery took 42 trading sessions.

The current Vanguard Short Duration Tax-Exempt Bond ETF drawdown is 1.24%.

The chart below shows the rolling one-month volatility.