BSMS vs. VTES

Last updated Jun 23, 2026

BSMS (Invesco BulletShares 2028 Municipal Bond ETF) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds - BSMS tracks the Invesco BulletShares Municipal Bond 2028 Index while VTES tracks the S&P 0-7 Year National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 3 years, BSMS returned 2.90%/yr vs 3.09%/yr for VTES. A 0.67 correlation means they provide meaningful diversification when combined. BSMS charges 0.18%/yr vs 0.07%/yr for VTES.

Performance

BSMS vs. VTES - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco BulletShares 2028 Municipal Bond ETF (BSMS) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BSMS achieves a 1.11% return, which is significantly higher than VTES's 0.75% return.

BSMS

• 1D: -0.04%
• 1M: 0.67%
• YTD: 1.11%
• 6M: 1.26%
• 1Y: 4.06%
• 3Y*: 2.90%
• 5Y*: 0.12%
• 10Y*: —

VTES

• 1D: -0.01%
• 1M: 0.57%
• YTD: 0.75%
• 6M: 0.95%
• 1Y: 3.30%
• 3Y*: 3.09%
• 5Y*: —
• 10Y*: —

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

BSMS vs. VTES - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
BSMS Invesco BulletShares 2028 Municipal Bond ETF	1.11%	3.61%	1.00%	4.66%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	0.75%	4.19%	1.85%	3.32%

Correlation

The correlation between BSMS and VTES is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023	0.67

The correlation between BSMS and VTES shifts across timeframes, from 0.51 (1 year) to 0.67 (all time), reflecting how their relationship changes across market environments.

Return for Risk

BSMS vs. VTES — Risk / Return Rank

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

BSMS

BSMS Risk / Return Rank: 82
BSMS Sharpe Ratio Rank: 86
BSMS Sortino Ratio Rank: 91
BSMS Omega Ratio Rank: 92
BSMS Calmar Ratio Rank: 78
BSMS Martin Ratio Rank: 63

VTES

VTES Risk / Return Rank: 71
VTES Sharpe Ratio Rank: 86
VTES Sortino Ratio Rank: 88
VTES Omega Ratio Rank: 93
VTES Calmar Ratio Rank: 47
VTES Martin Ratio Rank: 42

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.

BSMS vs. VTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco BulletShares 2028 Municipal Bond ETF (BSMS) 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.

	BSMS	VTES	Difference
Sharpe ratio: Return per unit of total volatility	2.69	2.67	+0.02
Sortino ratio: Return per unit of downside risk	4.16	3.85	+0.31
Omega ratio: Gain probability vs. loss probability	1.58	1.62	-0.03
Calmar ratio: Return relative to maximum drawdown	3.89	2.25	+1.64
Martin ratio: Return relative to average drawdown	10.99	6.47	+4.51

BSMS vs. VTES - Sharpe Ratio Comparison

The current BSMS Sharpe Ratio is 2.69, which is comparable to the VTES Sharpe Ratio of 2.67. The chart below compares the historical Sharpe Ratios of BSMS 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.

Drawdowns

BSMS vs. VTES - Drawdown Comparison

The maximum BSMS drawdown since its inception was -14.95%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for BSMS and VTES.

Drawdown Indicators

	BSMS	VTES	Difference
Max Drawdown Largest peak-to-trough decline	-14.95%	-2.42%	-12.53%
Max Drawdown (1Y) Largest decline over 1 year	-1.05%	-1.47%	+0.42%
Max Drawdown (3Y) Largest decline over 3 years	-4.25%	-1.80%	-2.45%
Max Drawdown (5Y) Largest decline over 5 years	-14.95%	—	—
Current Drawdown Current decline from peak	-0.81%	-0.53%	-0.28%
Average Drawdown Average peak-to-trough decline	-4.94%	-0.50%	-4.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.37%	0.51%	-0.14%

Volatility

BSMS vs. VTES - Volatility Comparison

Invesco BulletShares 2028 Municipal Bond ETF (BSMS) has a higher volatility of 0.51% compared to Vanguard Short-Term Tax-Exempt Bond ETF (VTES) at 0.27%. This indicates that BSMS'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.

Volatility by Period

	BSMS	VTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.51%	0.27%	+0.24%
Volatility (6M) Calculated over the trailing 6-month period	1.01%	0.98%	+0.03%
Volatility (1Y) Calculated over the trailing 1-year period	1.52%	1.24%	+0.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.59%	1.71%	+1.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.18%	1.71%	+4.47%

BSMS vs. VTES - Expense Ratio Comparison

BSMS 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

BSMS vs. VTES - Dividend Comparison

BSMS's dividend yield for the trailing twelve months is around 3.01%, more than VTES's 2.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
BSMS Invesco BulletShares 2028 Municipal Bond ETF	2.77%	2.79%	2.81%	2.58%	1.56%	1.49%	1.61%	0.46%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	2.75%	2.77%	2.99%	2.03%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BSMS and VTES in my portfolio?

BSMS and VTES have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BSMS or VTES?

BSMS has higher volatility (0.51%) compared to VTES (0.27%). In terms of maximum drawdown, BSMS dropped -14.95% vs VTES's -2.42%.

Which ETF is better, BSMS or VTES?

On 3-year performance, VTES leads with 3.09% vs 2.90% for BSMS. On fees, VTES is cheaper at 0.07% per year. On volatility, VTES has been the lower-risk option at 0.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BSMS or VTES?

Over the 3-year period, VTES has performed better with a 3.09% return vs 2.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BSMS or VTES?

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

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

BSMS has the higher dividend yield at 3.01%, compared with 2.75% for VTES.

What is the main difference between BSMS and VTES?

BSMS tracks Invesco BulletShares Municipal Bond 2028 Index, while VTES tracks S&P 0-7 Year National AMT-Free Municipal Bond Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.18% for BSMS and 0.07% for VTES.

Which has better risk-adjusted returns?

BSMS currently has the higher Sharpe Ratio (2.69 vs 2.67), 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.