BSMQ vs. VSDM

Last updated Jun 4, 2026

BSMQ (Invesco BulletShares 2026 Municipal Bond ETF) and VSDM (Vanguard Short Duration Tax-Exempt Bond ETF) are both Municipal Bonds funds. BSMQ is passively managed, while VSDM is actively managed. Over the past year, BSMQ returned 3.08% vs 4.98% for VSDM. At a 0.33 correlation, their price movements are largely independent. BSMQ charges 0.18%/yr vs 0.12%/yr for VSDM.

Performance

BSMQ vs. VSDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco BulletShares 2026 Municipal Bond ETF (BSMQ) and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BSMQ achieves a 0.73% return, which is significantly lower than VSDM's 1.22% return.

BSMQ

• 1D: -0.06%
• 1M: 0.14%
• YTD: 0.73%
• 6M: 1.17%
• 1Y: 3.08%
• 3Y*: 2.92%
• 5Y*: 0.29%
• 10Y*: —

VSDM

• 1D: 0.00%
• 1M: 0.47%
• YTD: 1.22%
• 6M: 1.63%
• 1Y: 4.98%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

BSMQ vs. VSDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BSMQ Invesco BulletShares 2026 Municipal Bond ETF	0.73%	3.12%	0.19%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	1.22%	5.39%	-0.15%

Correlation

The correlation between BSMQ and VSDM is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (All Time) Calculated using the full available price history since Nov 22, 2024	0.33

The correlation between BSMQ and VSDM shifts across timeframes, from 0.21 (1 year) to 0.33 (all time), reflecting how their relationship changes across market environments.

Return for Risk

BSMQ vs. VSDM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BSMQ

BSMQ Risk / Return Rank: 85
BSMQ Sharpe Ratio Rank: 71
BSMQ Sortino Ratio Rank: 82
BSMQ Omega Ratio Rank: 81
BSMQ Calmar Ratio Rank: 96
BSMQ Martin Ratio Rank: 93

VSDM

VSDM Risk / Return Rank: 84
VSDM Sharpe Ratio Rank: 94
VSDM Sortino Ratio Rank: 95
VSDM Omega Ratio Rank: 97
VSDM Calmar Ratio Rank: 68
VSDM Martin Ratio Rank: 65

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BSMQ vs. VSDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco BulletShares 2026 Municipal Bond ETF (BSMQ) and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM). 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.

	BSMQ	VSDM	Difference
Sharpe ratio: Return per unit of total volatility	2.32	3.67	-1.35
Sortino ratio: Return per unit of downside risk	3.68	5.35	-1.66
Omega ratio: Gain probability vs. loss probability	1.48	1.92	-0.44
Calmar ratio: Return relative to maximum drawdown	9.43	3.42	+6.01
Martin ratio: Return relative to average drawdown	24.69	12.07	+12.62
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BSMQ vs. VSDM - Sharpe Ratio Comparison

The current BSMQ Sharpe Ratio is 2.32, which is lower than the VSDM Sharpe Ratio of 3.67. The chart below compares the historical Sharpe Ratios of BSMQ and VSDM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BSMQ	VSDM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.32	3.67	-1.35
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.11	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	2.19	-1.94

Drawdowns

BSMQ vs. VSDM - Drawdown Comparison

The maximum BSMQ drawdown since its inception was -13.18%, which is greater than VSDM's maximum drawdown of -1.81%. Use the drawdown chart below to compare losses from any high point for BSMQ and VSDM.

Drawdown Indicators

	BSMQ	VSDM	Difference
Max Drawdown Largest peak-to-trough decline	-13.18%	-1.81%	-11.37%
Max Drawdown (1Y) Largest decline over 1 year	-0.33%	-1.46%	+1.13%
Max Drawdown (3Y) Largest decline over 3 years	-2.53%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-11.50%	—	—
Current Drawdown Current decline from peak	-0.12%	-0.33%	+0.21%
Average Drawdown Average peak-to-trough decline	-3.48%	-0.32%	-3.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.12%	0.41%	-0.29%

Volatility

BSMQ vs. VSDM - Volatility Comparison

The current volatility for Invesco BulletShares 2026 Municipal Bond ETF (BSMQ) is 0.39%, while Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) has a volatility of 0.44%. This indicates that BSMQ experiences smaller price fluctuations and is considered to be less risky than VSDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BSMQ	VSDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.39%	0.44%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	0.94%	1.07%	-0.13%
Volatility (1Y) Calculated over the trailing 1-year period	1.33%	1.36%	-0.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.68%	1.95%	+0.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.79%	1.95%	+2.84%

BSMQ vs. VSDM - Expense Ratio Comparison

BSMQ has a 0.18% expense ratio, which is higher than VSDM's 0.12% 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

BSMQ vs. VSDM - Dividend Comparison

BSMQ's dividend yield for the trailing twelve months is around 2.76%, less than VSDM's 3.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
BSMQ Invesco BulletShares 2026 Municipal Bond ETF	2.76%	2.74%	2.75%	2.47%	1.60%	1.14%	1.57%	0.44%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	3.11%	3.06%	0.35%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BSMQ and VSDM in my portfolio?

BSMQ and VSDM have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BSMQ or VSDM?

VSDM has higher volatility (0.44%) compared to BSMQ (0.39%). In terms of maximum drawdown, BSMQ dropped -13.18% vs VSDM's -1.81%.

Which ETF is better, BSMQ or VSDM?

On 1-year performance, VSDM leads with 4.98% vs 3.08% for BSMQ. On fees, VSDM is cheaper at 0.12% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BSMQ or VSDM?

Over the 1-year period, VSDM has performed better with a 4.98% return vs 3.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BSMQ or VSDM?

VSDM is cheaper with a 0.12% expense ratio, compared with 0.18% for BSMQ.

Which ETF pays a higher dividend yield, BSMQ or VSDM?

VSDM has the higher dividend yield at 3.11%, compared with 2.76% for BSMQ.

What is the main difference between BSMQ and VSDM?

They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.18% for BSMQ and 0.12% for VSDM.

Which has better risk-adjusted returns?

VSDM currently has the higher Sharpe Ratio (3.67 vs 2.32), 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.