BSMT vs. VTES

Last updated Jun 4, 2026

BSMT (Invesco BulletShares 2029 Municipal Bond ETF) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF Shares) are both Municipal Bonds funds - BSMT tracks the Invesco BulletShares Municipal Bond 2029 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, BSMT returned 3.19%/yr vs 3.23%/yr for VTES. A 0.72 correlation means they provide meaningful diversification when combined. BSMT charges 0.18%/yr vs 0.07%/yr for VTES.

Performance

BSMT vs. VTES - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco BulletShares 2029 Municipal Bond ETF (BSMT) 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, BSMT achieves a 0.98% return, which is significantly higher than VTES's 0.66% return.

BSMT

• 1D: -0.04%
• 1M: 0.44%
• YTD: 0.98%
• 6M: 1.37%
• 1Y: 5.29%
• 3Y*: 3.19%
• 5Y*: -0.12%
• 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)

BSMT vs. VTES - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
BSMT Invesco BulletShares 2029 Municipal Bond ETF	0.98%	3.79%	0.38%	4.82%
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	0.66%	4.19%	1.85%	3.32%

Correlation

The correlation between BSMT and VTES is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (All Time) Calculated using the full available price history since Mar 10, 2023	0.72

The correlation between BSMT and VTES shifts across timeframes, from 0.62 (1 year) to 0.72 (all time), reflecting how their relationship changes across market environments.

Return for Risk

BSMT vs. VTES — Risk / Return Rank

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

BSMT

BSMT Risk / Return Rank: 80
BSMT Sharpe Ratio Rank: 87
BSMT Sortino Ratio Rank: 93
BSMT Omega Ratio Rank: 93
BSMT Calmar Ratio Rank: 67
BSMT Martin Ratio Rank: 61

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.

BSMT vs. VTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco BulletShares 2029 Municipal Bond ETF (BSMT) 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.

	BSMT	VTES	Difference
Sharpe ratio: Return per unit of total volatility	2.87	2.94	-0.07
Sortino ratio: Return per unit of downside risk	4.66	4.26	+0.40
Omega ratio: Gain probability vs. loss probability	1.65	1.70	-0.05
Calmar ratio: Return relative to maximum drawdown	3.33	2.48	+0.84
Martin ratio: Return relative to average drawdown	10.84	7.36	+3.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BSMT vs. VTES - Sharpe Ratio Comparison

The current BSMT Sharpe Ratio is 2.87, which is comparable to the VTES Sharpe Ratio of 2.94. The chart below compares the historical Sharpe Ratios of BSMT 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

	BSMT	VTES	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.87	2.94	-0.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.03	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.15	1.81	-1.66

Drawdowns

BSMT vs. VTES - Drawdown Comparison

The maximum BSMT drawdown since its inception was -16.20%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for BSMT and VTES.

Drawdown Indicators

	BSMT	VTES	Difference
Max Drawdown Largest peak-to-trough decline	-16.20%	-2.42%	-13.78%
Max Drawdown (1Y) Largest decline over 1 year	-1.60%	-1.47%	-0.13%
Max Drawdown (3Y) Largest decline over 3 years	-4.79%	-1.80%	-2.99%
Max Drawdown (5Y) Largest decline over 5 years	-16.20%	—	—
Current Drawdown Current decline from peak	-2.05%	-0.62%	-1.43%
Average Drawdown Average peak-to-trough decline	-5.65%	-0.50%	-5.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.49%	0.49%	0.00%

Volatility

BSMT vs. VTES - Volatility Comparison

Invesco BulletShares 2029 Municipal Bond ETF (BSMT) has a higher volatility of 0.62% compared to Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES) at 0.35%. This indicates that BSMT'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

	BSMT	VTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.62%	0.35%	+0.27%
Volatility (6M) Calculated over the trailing 6-month period	1.22%	0.97%	+0.25%
Volatility (1Y) Calculated over the trailing 1-year period	1.85%	1.24%	+0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.25%	1.72%	+2.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.42%	1.72%	+4.70%

BSMT vs. VTES - Expense Ratio Comparison

BSMT 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

BSMT vs. VTES - Dividend Comparison

BSMT's dividend yield for the trailing twelve months is around 2.74%, which matches VTES's 2.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
BSMT Invesco BulletShares 2029 Municipal Bond ETF	2.74%	2.78%	2.80%	2.62%	1.65%	1.31%	1.82%	0.48%
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 BSMT and VTES in my portfolio?

BSMT and VTES have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BSMT or VTES?

BSMT has higher volatility (0.62%) compared to VTES (0.35%). In terms of maximum drawdown, BSMT dropped -16.20% vs VTES's -2.42%.

Which ETF is better, BSMT or VTES?

On 3-year performance, VTES leads with 3.23% vs 3.19% for BSMT. 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.

Which ETF has performed better, BSMT or VTES?

Over the 3-year period, VTES has performed better with a 3.23% return vs 3.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BSMT or VTES?

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

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

BSMT and VTES have nearly identical dividend yields, around 2.74%.

What is the main difference between BSMT and VTES?

BSMT tracks Invesco BulletShares Municipal Bond 2029 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 BSMT and 0.07% for VTES.

Which has better risk-adjusted returns?

VTES currently has the higher Sharpe Ratio (2.94 vs 2.87), 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.