EVSM vs. VTES

Last updated Jun 4, 2026

EVSM (Eaton Vance Short Duration Municipal Income ETF) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF Shares) are both Municipal Bonds funds - EVSM tracks the ICE BofA 1-3 Year Municipal Securities 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 year, EVSM returned 4.06% vs 3.63% for VTES. A 0.54 correlation means they provide meaningful diversification when combined. EVSM charges 0.19%/yr vs 0.07%/yr for VTES.

Performance

EVSM vs. VTES - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Eaton Vance Short Duration Municipal Income ETF (EVSM) 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, EVSM achieves a 1.15% return, which is significantly higher than VTES's 0.66% return.

EVSM

• 1D: 0.06%
• 1M: 0.42%
• YTD: 1.15%
• 6M: 1.48%
• 1Y: 4.06%
• 3Y*: —
• 5Y*: —
• 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)

EVSM vs. VTES - Yearly Performance Comparison

	2026 (YTD)	2025	2024
EVSM Eaton Vance Short Duration Municipal Income ETF	1.15%	4.24%	2.52%
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	0.66%	4.19%	1.96%

Correlation

The correlation between EVSM and VTES is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (All Time) Calculated using the full available price history since Mar 26, 2024	0.54

The correlation between EVSM and VTES has been stable across timeframes, ranging from 0.46 to 0.54 - a consistent structural relationship.

Return for Risk

EVSM vs. VTES — Risk / Return Rank

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

EVSM

EVSM Risk / Return Rank: 86
EVSM Sharpe Ratio Rank: 91
EVSM Sortino Ratio Rank: 95
EVSM Omega Ratio Rank: 94
EVSM Calmar Ratio Rank: 76
EVSM Martin Ratio Rank: 73

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.

EVSM vs. VTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Eaton Vance Short Duration Municipal Income ETF (EVSM) 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.

	EVSM	VTES	Difference
Sharpe ratio: Return per unit of total volatility	3.23	2.94	+0.29
Sortino ratio: Return per unit of downside risk	5.13	4.26	+0.87
Omega ratio: Gain probability vs. loss probability	1.70	1.70	+0.01
Calmar ratio: Return relative to maximum drawdown	3.79	2.48	+1.31
Martin ratio: Return relative to average drawdown	13.52	7.36	+6.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EVSM vs. VTES - Sharpe Ratio Comparison

The current EVSM Sharpe Ratio is 3.23, which is comparable to the VTES Sharpe Ratio of 2.94. The chart below compares the historical Sharpe Ratios of EVSM 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

	EVSM	VTES	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.23	2.94	+0.29
Sharpe Ratio (All Time) Calculated using the full available price history	1.89	1.81	+0.08

Drawdowns

EVSM vs. VTES - Drawdown Comparison

The maximum EVSM drawdown since its inception was -1.50%, smaller than the maximum VTES drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for EVSM and VTES.

Drawdown Indicators

	EVSM	VTES	Difference
Max Drawdown Largest peak-to-trough decline	-1.50%	-2.42%	+0.92%
Max Drawdown (1Y) Largest decline over 1 year	-1.07%	-1.47%	+0.40%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.80%	—
Current Drawdown Current decline from peak	-0.06%	-0.62%	+0.56%
Average Drawdown Average peak-to-trough decline	-0.24%	-0.50%	+0.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.30%	0.49%	-0.19%

Volatility

EVSM vs. VTES - Volatility Comparison

The current volatility for Eaton Vance Short Duration Municipal Income ETF (EVSM) is 0.33%, while Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES) has a volatility of 0.35%. This indicates that EVSM experiences smaller price fluctuations and is considered to be less risky than VTES based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EVSM	VTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.33%	0.35%	-0.02%
Volatility (6M) Calculated over the trailing 6-month period	0.83%	0.97%	-0.14%
Volatility (1Y) Calculated over the trailing 1-year period	1.27%	1.24%	+0.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.92%	1.72%	+0.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.92%	1.72%	+0.20%

EVSM vs. VTES - Expense Ratio Comparison

EVSM has a 0.19% 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

EVSM vs. VTES - Dividend Comparison

EVSM's dividend yield for the trailing twelve months is around 3.00%, more than VTES's 2.75% yield.

Position	TTM	2025	2024	2023
EVSM Eaton Vance Short Duration Municipal Income ETF	3.00%	3.12%	2.99%	0.00%
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	2.75%	2.77%	2.99%	2.03%

Frequently Asked Questions

Can I hold both EVSM and VTES in my portfolio?

EVSM and VTES have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EVSM or VTES?

VTES has higher volatility (0.35%) compared to EVSM (0.33%). In terms of maximum drawdown, EVSM dropped -1.50% vs VTES's -2.42%.

Which ETF is better, EVSM or VTES?

On 1-year performance, EVSM leads with 4.06% vs 3.63% for VTES. 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, EVSM or VTES?

Over the 1-year period, EVSM has performed better with a 4.06% return vs 3.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EVSM or VTES?

VTES is cheaper with a 0.07% expense ratio, compared with 0.19% for EVSM.

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

EVSM has the higher dividend yield at 3.00%, compared with 2.75% for VTES.

What is the main difference between EVSM and VTES?

EVSM tracks ICE BofA 1-3 Year Municipal Securities Index, while VTES tracks S&P 0-7 Yr National AMT-Free Municipal Bond Index - Benchmark TR Gross. They also come from different issuers: Eaton Vance and Vanguard. Their fees differ too: 0.19% for EVSM and 0.07% for VTES.

Which has better risk-adjusted returns?

EVSM currently has the higher Sharpe Ratio (3.23 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.