DFNM vs. VTES

Last updated Apr 1, 2026

Compare and contrast key facts about Dimensional National Municipal Bond ETF (DFNM) and Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES).

DFNM and VTES are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. DFNM is an actively managed fund by Dimensional. It was launched on Nov 15, 2021. VTES is a passively managed fund by Vanguard that tracks the performance of the S&P 0-7 Yr National AMT-Free Municipal Bond Index - Benchmark TR Gross. It was launched on Mar 8, 2023.

Performance

DFNM vs. VTES - Performance Comparison

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

DFNM vs. VTES - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
DFNM Dimensional National Municipal Bond ETF	0.08%	3.87%	1.19%	4.10%
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	0.02%	4.19%	1.85%	3.32%

Returns By Period

In the year-to-date period, DFNM achieves a 0.08% return, which is significantly higher than VTES's 0.02% return.

DFNM

• 1D: 0.17%
• 1M: -1.55%
• YTD: 0.08%
• 6M: 1.40%
• 1Y: 3.80%
• 3Y*: 2.47%
• 5Y*: —
• 10Y*: —

VTES

• 1D: 0.11%
• 1M: -1.24%
• YTD: 0.02%
• 6M: 0.60%
• 1Y: 3.45%
• 3Y*: 2.61%
• 5Y*: —
• 10Y*: —

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

DFNM vs. VTES - Expense Ratio Comparison

DFNM has a 0.17% 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%.

DFNM

Dimensional National Municipal Bond ETF

VTES

Vanguard Short-Term Tax-Exempt Bond ETF Shares

Return for Risk

DFNM vs. VTES — Risk / Return Rank

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

DFNM

DFNM Risk / Return Rank: 73
DFNM Sharpe Ratio Rank: 78
DFNM Sortino Ratio Rank: 73
DFNM Omega Ratio Rank: 87
DFNM Calmar Ratio Rank: 68
DFNM Martin Ratio Rank: 61

VTES

VTES Risk / Return Rank: 87
VTES Sharpe Ratio Rank: 90
VTES Sortino Ratio Rank: 89
VTES Omega Ratio Rank: 96
VTES Calmar Ratio Rank: 83
VTES Martin Ratio Rank: 75

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.

DFNM vs. VTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional National Municipal Bond ETF (DFNM) 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.

	DFNM	VTES	Difference
Sharpe ratio Return per unit of total volatility	1.46	1.91	-0.44
Sortino ratio Return per unit of downside risk	1.85	2.43	-0.58
Omega ratio Gain probability vs. loss probability	1.35	1.49	-0.14
Calmar ratio Return relative to maximum drawdown	1.72	2.30	-0.58
Martin ratio Return relative to average drawdown	6.02	7.44	-1.42
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFNM vs. VTES - Sharpe Ratio Comparison

The current DFNM Sharpe Ratio is 1.46, which is comparable to the VTES Sharpe Ratio of 1.91. The chart below compares the historical Sharpe Ratios of DFNM and VTES, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	DFNM	VTES	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.46	1.91	-0.44
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	1.76	-1.28

Correlation

The correlation between DFNM and VTES is 0.72, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

DFNM vs. VTES - Dividend Comparison

DFNM's dividend yield for the trailing twelve months is around 2.97%, more than VTES's 2.77% yield.

	TTM	2025	2024	2023	2022	2021
DFNM Dimensional National Municipal Bond ETF	2.97%	2.94%	2.74%	2.39%	1.16%	0.05%
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	2.77%	2.77%	2.99%	2.03%	0.00%	0.00%

Drawdowns

DFNM vs. VTES - Drawdown Comparison

The maximum DFNM drawdown since its inception was -6.99%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for DFNM and VTES.

Drawdown Indicators

	DFNM	VTES	Difference
Max Drawdown Largest peak-to-trough decline	-6.99%	-2.42%	-4.57%
Max Drawdown (1Y) Largest decline over 1 year	-2.34%	-1.59%	-0.75%
Current Drawdown Current decline from peak	-1.55%	-1.24%	-0.31%
Average Drawdown Average peak-to-trough decline	-2.01%	-0.48%	-1.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.67%	0.49%	+0.18%

Volatility

DFNM vs. VTES - Volatility Comparison

Dimensional National Municipal Bond ETF (DFNM) has a higher volatility of 0.86% compared to Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES) at 0.69%. This indicates that DFNM'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

	DFNM	VTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.86%	0.69%	+0.17%
Volatility (6M) Calculated over the trailing 6-month period	1.22%	0.96%	+0.26%
Volatility (1Y) Calculated over the trailing 1-year period	2.62%	1.83%	+0.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.57%	1.75%	+0.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.57%	1.75%	+0.82%