FMNY vs. VTES

Last updated Jun 26, 2026

FMNY (First Trust New York High Income Municipal ETF) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds. FMNY is actively managed, while VTES is passively managed. Over the past 3 years, FMNY returned 3.98%/yr vs 3.13%/yr for VTES. A 0.62 correlation means they provide meaningful diversification when combined. FMNY charges 0.65%/yr vs 0.07%/yr for VTES.

Performance

FMNY vs. VTES - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust New York High Income Municipal ETF (FMNY) 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, FMNY achieves a 2.34% return, which is significantly higher than VTES's 0.86% return.

FMNY

• 1D: 0.16%
• 1M: 1.15%
• YTD: 2.34%
• 6M: 2.34%
• 1Y: 7.47%
• 3Y*: 3.98%
• 5Y*: 0.67%
• 10Y*: —

VTES

• 1D: 0.09%
• 1M: 0.50%
• YTD: 0.86%
• 6M: 0.97%
• 1Y: 3.29%
• 3Y*: 3.13%
• 5Y*: —
• 10Y*: —

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

FMNY vs. VTES - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FMNY First Trust New York High Income Municipal ETF	2.34%	3.94%	1.74%	5.64%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	0.86%	4.19%	1.85%	3.32%

Correlation

The correlation between FMNY and VTES is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023	0.62

Over the past year, the correlation between FMNY and VTES has dropped to 0.41 - well below their long-term average of 0.62, suggesting their price drivers have been diverging.

Return for Risk

FMNY vs. VTES — Risk / Return Rank

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

FMNY

FMNY Risk / Return Rank: 75
FMNY Sharpe Ratio Rank: 82
FMNY Sortino Ratio Rank: 85
FMNY Omega Ratio Rank: 89
FMNY Calmar Ratio Rank: 61
FMNY Martin Ratio Rank: 55

VTES

VTES Risk / Return Rank: 75
VTES Sharpe Ratio Rank: 91
VTES Sortino Ratio Rank: 92
VTES Omega Ratio Rank: 95
VTES Calmar Ratio Rank: 52
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.

FMNY vs. VTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust New York High Income Municipal ETF (FMNY) 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.

	FMNY	VTES	Difference
Sharpe ratio: Return per unit of total volatility	2.31	2.66	-0.35
Sortino ratio: Return per unit of downside risk	3.35	3.83	-0.48
Omega ratio: Gain probability vs. loss probability	1.49	1.61	-0.13
Calmar ratio: Return relative to maximum drawdown	2.65	2.25	+0.40
Martin ratio: Return relative to average drawdown	8.47	6.42	+2.06

FMNY vs. VTES - Sharpe Ratio Comparison

The current FMNY Sharpe Ratio is 2.31, which is comparable to the VTES Sharpe Ratio of 2.66. The chart below compares the historical Sharpe Ratios of FMNY 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

FMNY vs. VTES - Drawdown Comparison

The maximum FMNY drawdown since its inception was -15.90%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for FMNY and VTES.

Drawdown Indicators

	FMNY	VTES	Difference
Max Drawdown Largest peak-to-trough decline	-15.90%	-2.42%	-13.48%
Max Drawdown (1Y) Largest decline over 1 year	-2.83%	-1.47%	-1.36%
Max Drawdown (3Y) Largest decline over 3 years	-5.88%	-1.80%	-4.08%
Max Drawdown (5Y) Largest decline over 5 years	-15.90%	—	—
Current Drawdown Current decline from peak	-0.26%	-0.42%	+0.16%
Average Drawdown Average peak-to-trough decline	-5.62%	-0.50%	-5.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	0.51%	+0.37%

Volatility

FMNY vs. VTES - Volatility Comparison

First Trust New York High Income Municipal ETF (FMNY) has a higher volatility of 0.40% compared to Vanguard Short-Term Tax-Exempt Bond ETF (VTES) at 0.22%. This indicates that FMNY'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

	FMNY	VTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.40%	0.22%	+0.18%
Volatility (6M) Calculated over the trailing 6-month period	2.35%	0.98%	+1.37%
Volatility (1Y) Calculated over the trailing 1-year period	3.25%	1.24%	+2.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.00%	1.71%	+2.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.97%	1.71%	+2.26%

FMNY vs. VTES - Expense Ratio Comparison

FMNY has a 0.65% expense ratio, which is higher than VTES's 0.07% expense ratio.

Dividends

FMNY vs. VTES - Dividend Comparison

FMNY's dividend yield for the trailing twelve months is around 3.99%, more than VTES's 2.74% yield.

Position	TTM	2025	2024	2023	2022	2021
FMNY First Trust New York High Income Municipal ETF	3.99%	3.64%	3.56%	3.25%	2.34%	0.72%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	2.74%	2.77%	2.99%	2.03%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FMNY and VTES in my portfolio?

FMNY and VTES have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FMNY or VTES?

FMNY has higher volatility (0.40%) compared to VTES (0.22%). In terms of maximum drawdown, FMNY dropped -15.90% vs VTES's -2.42%.

Which ETF is better, FMNY or VTES?

On 3-year performance, FMNY leads with 3.98% vs 3.13% for VTES. On fees, VTES is cheaper at 0.07% per year. On volatility, VTES has been the lower-risk option at 0.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FMNY or VTES?

Over the 3-year period, FMNY has performed better with a 3.98% return vs 3.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FMNY or VTES?

VTES is cheaper with a 0.07% expense ratio, compared with 0.65% for FMNY.

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

FMNY has the higher dividend yield at 3.99%, compared with 2.74% for VTES.

What is the main difference between FMNY and VTES?

They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.65% for FMNY and 0.07% for VTES.

Which has better risk-adjusted returns?

VTES currently has the higher Sharpe Ratio (2.66 vs 2.31), 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.