AOM vs. VTES
AOM (iShares Core Moderate Allocation ETF) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF) are both exchange-traded funds - AOM is a Diversified Portfolio fund tracking the S&P Target Risk Moderate, while VTES is a Municipal Bonds fund tracking the S&P 0-7 Year National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 3 years, AOM returned 10.66%/yr vs 3.18%/yr for VTES. At a 0.36 correlation, their price movements are largely independent. AOM charges 0.25%/yr vs 0.07%/yr for VTES.
Performance
AOM vs. VTES - Performance Comparison
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Returns By Period
In the year-to-date period, AOM achieves a 4.75% return, which is significantly higher than VTES's 0.67% return.
AOM
- 1D
- 0.04%
- 1M
- 0.36%
- YTD
- 4.75%
- 6M
- 5.32%
- 1Y
- 13.68%
- 3Y*
- 10.66%
- 5Y*
- 4.66%
- 10Y*
- 6.31%
VTES
- 1D
- -0.03%
- 1M
- 0.42%
- YTD
- 0.67%
- 6M
- 0.96%
- 1Y
- 3.39%
- 3Y*
- 3.18%
- 5Y*
- —
- 10Y*
- —
AOM vs. VTES - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
AOM iShares Core Moderate Allocation ETF | 4.75% | 13.28% | 7.95% | 9.87% |
VTES Vanguard Short-Term Tax-Exempt Bond ETF | 0.67% | 4.19% | 1.85% | 3.32% |
Correlation
The correlation between AOM and VTES is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.31 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.38 |
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023 | 0.36 |
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Return for Risk
AOM vs. VTES — Risk / Return Rank
AOM
VTES
AOM vs. VTES - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core Moderate Allocation ETF (AOM) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| AOM | VTES | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.83 | ||
| Sortino ratioReturn per unit of downside risk | -1.18 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.62 | -0.27 |
| Calmar ratioReturn relative to maximum drawdown | 2.52 | 2.28 | +0.24 |
| Martin ratioReturn relative to average drawdown | 10.84 | 6.62 | +4.22 |
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Drawdowns
AOM vs. VTES - Drawdown Comparison
The maximum AOM drawdown since its inception was -19.96%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for AOM and VTES.
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Drawdown Indicators
| AOM | VTES | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.96% | -2.42% | -17.54% |
Max Drawdown (1Y)Largest decline over 1 year | -5.11% | -1.47% | -3.64% |
Max Drawdown (3Y)Largest decline over 3 years | -6.85% | -1.80% | -5.05% |
Max Drawdown (5Y)Largest decline over 5 years | -19.96% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -19.96% | — | — |
Current DrawdownCurrent decline from peak | -0.70% | -0.60% | -0.10% |
Average DrawdownAverage peak-to-trough decline | -2.70% | -0.50% | -2.20% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.19% | 0.50% | +0.69% |
Volatility
AOM vs. VTES - Volatility Comparison
iShares Core Moderate Allocation ETF (AOM) has a higher volatility of 2.82% compared to Vanguard Short-Term Tax-Exempt Bond ETF (VTES) at 0.35%. This indicates that AOM's price experiences larger fluctuations and is considered to be riskier than VTES based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AOM | VTES | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.82% | 0.35% | +2.47% |
Volatility (6M)Calculated over the trailing 6-month period | 5.63% | 0.98% | +4.65% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.90% | 1.24% | +5.66% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.19% | 1.71% | +6.48% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.96% | 1.71% | +6.25% |
AOM vs. VTES - Expense Ratio Comparison
AOM has a 0.25% expense ratio, which is higher than VTES's 0.07% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
AOM vs. VTES - Dividend Comparison
AOM's dividend yield for the trailing twelve months is around 2.99%, more than VTES's 2.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AOM iShares Core Moderate Allocation ETF | 2.99% | 2.98% | 3.10% | 2.79% | 2.27% | 1.56% | 2.02% | 2.66% | 2.53% | 3.31% | 2.14% | 1.98% |
VTES Vanguard Short-Term Tax-Exempt Bond ETF | 2.75% | 2.77% | 2.99% | 2.03% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
AOM and VTES have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AOM has higher volatility (2.82%) compared to VTES (0.35%). In terms of maximum drawdown, AOM dropped -19.96% vs VTES's -2.42%.
On 3-year performance, AOM leads with 10.66% vs 3.18% for VTES. On fees, VTES is cheaper at 0.07% per year. On volatility, VTES has been the lower-risk option at 0.35%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, AOM has performed better with a 10.66% return vs 3.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTES is cheaper with a 0.07% expense ratio, compared with 0.25% for AOM.
AOM has the higher dividend yield at 2.99%, compared with 2.75% for VTES.
AOM is categorized as Diversified Portfolio, while VTES is Municipal Bonds. AOM tracks S&P Target Risk Moderate, while VTES tracks S&P 0-7 Year National AMT-Free Municipal Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.25% for AOM and 0.07% for VTES.
VTES currently has the higher Sharpe Ratio (2.70 vs 1.87), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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