BSMR vs. VTES

Last updated Jun 4, 2026

BSMR (Invesco BulletShares 2027 Municipal Bond ETF) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF Shares) are both Municipal Bonds funds - BSMR tracks the Invesco BulletShares Municipal Bond 2027 Index while VTES tracks the S&P 0-7 Yr National AMT-Free Municipal Bond Index - Benchmark TR Gross. Both are passively managed. Over the past 3 years, BSMR returned 3.03%/yr vs 3.23%/yr for VTES. A 0.64 correlation means they provide meaningful diversification when combined. BSMR charges 0.18%/yr vs 0.07%/yr for VTES.

Performance

BSMR vs. VTES - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco BulletShares 2027 Municipal Bond ETF (BSMR) and Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BSMR achieves a 1.04% return, which is significantly higher than VTES's 0.66% return.

BSMR

• 1D: 0.05%
• 1M: 0.41%
• YTD: 1.04%
• 6M: 1.31%
• 1Y: 4.16%
• 3Y*: 3.03%
• 5Y*: 0.48%
• 10Y*: —

VTES

• 1D: 0.01%
• 1M: 0.29%
• YTD: 0.66%
• 6M: 1.02%
• 1Y: 3.63%
• 3Y*: 3.23%
• 5Y*: —
• 10Y*: —

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

BSMR vs. VTES - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
BSMR Invesco BulletShares 2027 Municipal Bond ETF	1.04%	3.10%	1.51%	4.01%
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	0.66%	4.19%	1.85%	3.32%

Correlation

The correlation between BSMR and VTES is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (All Time) Calculated using the full available price history since Mar 10, 2023	0.64

The correlation between BSMR and VTES shifts across timeframes, from 0.44 (1 year) to 0.64 (all time), reflecting how their relationship changes across market environments.

Return for Risk

BSMR vs. VTES — Risk / Return Rank

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

BSMR

BSMR Risk / Return Rank: 94
BSMR Sharpe Ratio Rank: 92
BSMR Sortino Ratio Rank: 96
BSMR Omega Ratio Rank: 95
BSMR Calmar Ratio Rank: 94
BSMR Martin Ratio Rank: 92

VTES

VTES Risk / Return Rank: 73
VTES Sharpe Ratio Rank: 87
VTES Sortino Ratio Rank: 90
VTES Omega Ratio Rank: 94
VTES Calmar Ratio Rank: 49
VTES Martin Ratio Rank: 44

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.

BSMR vs. VTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco BulletShares 2027 Municipal Bond ETF (BSMR) and Vanguard Short-Term Tax-Exempt Bond ETF Shares (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.

	BSMR	VTES	Difference
Sharpe ratio Return per unit of total volatility	3.33	2.94	+0.39
Sortino ratio Return per unit of downside risk	5.57	4.26	+1.31
Omega ratio Gain probability vs. loss probability	1.74	1.70	+0.04
Calmar ratio Return relative to maximum drawdown	7.37	2.48	+4.89
Martin ratio Return relative to average drawdown	23.41	7.36	+16.04
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BSMR vs. VTES - Sharpe Ratio Comparison

The current BSMR Sharpe Ratio is 3.33, which is comparable to the VTES Sharpe Ratio of 2.94. The chart below compares the historical Sharpe Ratios of BSMR and VTES, 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

	BSMR	VTES	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.33	2.94	+0.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.16	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.22	1.81	-1.59

Drawdowns

BSMR vs. VTES - Drawdown Comparison

The maximum BSMR drawdown since its inception was -13.49%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for BSMR and VTES.

Drawdown Indicators

	BSMR	VTES	Difference
Max Drawdown Largest peak-to-trough decline	-13.49%	-2.42%	-11.07%
Max Drawdown (1Y) Largest decline over 1 year	-0.57%	-1.47%	+0.90%
Max Drawdown (3Y) Largest decline over 3 years	-3.50%	-1.80%	-1.70%
Max Drawdown (5Y) Largest decline over 5 years	-12.02%	—	—
Current Drawdown Current decline from peak	0.00%	-0.62%	+0.62%
Average Drawdown Average peak-to-trough decline	-3.49%	-0.50%	-2.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.18%	0.49%	-0.31%

Volatility

BSMR vs. VTES - Volatility Comparison

Invesco BulletShares 2027 Municipal Bond ETF (BSMR) and Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES) have volatilities of 0.34% and 0.35%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BSMR	VTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.34%	0.35%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	0.92%	0.97%	-0.05%
Volatility (1Y) Calculated over the trailing 1-year period	1.25%	1.24%	+0.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.03%	1.72%	+1.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.72%	1.72%	+4.00%

BSMR vs. VTES - Expense Ratio Comparison

BSMR has a 0.18% 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

BSMR vs. VTES - Dividend Comparison

BSMR's dividend yield for the trailing twelve months is around 2.72%, less than VTES's 2.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
BSMR Invesco BulletShares 2027 Municipal Bond ETF	2.72%	2.77%	2.78%	2.72%	1.40%	1.00%	1.49%	0.45%
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	2.75%	2.77%	2.99%	2.03%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BSMR and VTES in my portfolio?

BSMR and VTES have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BSMR or VTES?

VTES has higher volatility (0.35%) compared to BSMR (0.34%). In terms of maximum drawdown, BSMR dropped -13.49% vs VTES's -2.42%.

Which ETF is better, BSMR or VTES?

On 3-year performance, VTES leads with 3.23% vs 3.03% for BSMR. On fees, VTES is cheaper at 0.07% 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, BSMR or VTES?

Over the 3-year period, VTES has performed better with a 3.23% return vs 3.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BSMR or VTES?

VTES is cheaper with a 0.07% expense ratio, compared with 0.18% for BSMR.

Which ETF pays a higher dividend yield, BSMR or VTES?

VTES has the higher dividend yield at 2.75%, compared with 2.72% for BSMR.

What is the main difference between BSMR and VTES?

BSMR tracks Invesco BulletShares Municipal Bond 2027 Index, while VTES tracks S&P 0-7 Yr National AMT-Free Municipal Bond Index - Benchmark TR Gross. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.18% for BSMR and 0.07% for VTES.

Which has better risk-adjusted returns?

BSMR currently has the higher Sharpe Ratio (3.33 vs 2.94), 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.