FSAJX vs. VSDM

Last updated Jun 24, 2026

FSAJX (Fidelity SAI Tax-Free Bond Fund) and VSDM (Vanguard Short Duration Tax-Exempt Bond ETF) are both Municipal Bonds funds. Over the past year, FSAJX returned 6.98% vs 4.47% for VSDM. A 0.66 correlation means they provide meaningful diversification when combined. FSAJX charges 0.25%/yr vs 0.12%/yr for VSDM.

Performance

FSAJX vs. VSDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity SAI Tax-Free Bond Fund (FSAJX) and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FSAJX achieves a 1.68% return, which is significantly higher than VSDM's 1.37% return.

FSAJX

• 1D: -0.10%
• 1M: 1.59%
• YTD: 1.68%
• 6M: 2.07%
• 1Y: 6.98%
• 3Y*: 4.43%
• 5Y*: 1.25%
• 10Y*: —

VSDM

• 1D: 0.00%
• 1M: 0.75%
• YTD: 1.37%
• 6M: 1.53%
• 1Y: 4.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FSAJX vs. VSDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FSAJX Fidelity SAI Tax-Free Bond Fund	1.68%	5.25%	-0.10%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	1.37%	5.39%	-0.10%

Correlation

The correlation between FSAJX and VSDM is 0.60, 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	0.60
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	0.66

The correlation between FSAJX and VSDM has been stable across timeframes, ranging from 0.60 to 0.66 - a consistent structural relationship.

Return for Risk

FSAJX vs. VSDM — Risk / Return Rank

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

FSAJX

FSAJX Risk / Return Rank: 69
FSAJX Sharpe Ratio Rank: 85
FSAJX Sortino Ratio Rank: 89
FSAJX Omega Ratio Rank: 90
FSAJX Calmar Ratio Rank: 42
FSAJX Martin Ratio Rank: 41

VSDM

VSDM Risk / Return Rank: 82
VSDM Sharpe Ratio Rank: 94
VSDM Sortino Ratio Rank: 95
VSDM Omega Ratio Rank: 96
VSDM Calmar Ratio Rank: 65
VSDM Martin Ratio Rank: 62

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.

FSAJX vs. VSDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity SAI Tax-Free Bond Fund (FSAJX) and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM). 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.

	FSAJX	VSDM	Difference
Sharpe ratio: Return per unit of total volatility	2.56	3.32	-0.75
Sortino ratio: Return per unit of downside risk	4.01	4.80	-0.79
Omega ratio: Gain probability vs. loss probability	1.62	1.82	-0.20
Calmar ratio: Return relative to maximum drawdown	2.37	3.07	-0.70
Martin ratio: Return relative to average drawdown	8.26	10.72	-2.45

FSAJX vs. VSDM - Sharpe Ratio Comparison

The current FSAJX Sharpe Ratio is 2.56, which is comparable to the VSDM Sharpe Ratio of 3.32. The chart below compares the historical Sharpe Ratios of FSAJX and VSDM, 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

FSAJX vs. VSDM - Drawdown Comparison

The maximum FSAJX drawdown since its inception was -15.16%, which is greater than VSDM's maximum drawdown of -1.81%. Use the drawdown chart below to compare losses from any high point for FSAJX and VSDM.

Drawdown Indicators

	FSAJX	VSDM	Difference
Max Drawdown Largest peak-to-trough decline	-15.16%	-1.81%	-13.35%
Max Drawdown (1Y) Largest decline over 1 year	-3.02%	-1.46%	-1.56%
Max Drawdown (3Y) Largest decline over 3 years	-5.86%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-15.16%	—	—
Current Drawdown Current decline from peak	-0.52%	-0.19%	-0.33%
Average Drawdown Average peak-to-trough decline	-3.30%	-0.32%	-2.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.86%	0.42%	+0.44%

Volatility

FSAJX vs. VSDM - Volatility Comparison

Fidelity SAI Tax-Free Bond Fund (FSAJX) has a higher volatility of 0.79% compared to Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) at 0.32%. This indicates that FSAJX's price experiences larger fluctuations and is considered to be riskier than VSDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FSAJX	VSDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.79%	0.32%	+0.47%
Volatility (6M) Calculated over the trailing 6-month period	2.14%	1.07%	+1.07%
Volatility (1Y) Calculated over the trailing 1-year period	2.80%	1.36%	+1.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.12%	1.92%	+2.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.61%	1.92%	+2.69%

FSAJX vs. VSDM - Expense Ratio Comparison

FSAJX has a 0.25% expense ratio, which is higher than VSDM's 0.12% 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

FSAJX vs. VSDM - Dividend Comparison

FSAJX's dividend yield for the trailing twelve months is around 3.30%, more than VSDM's 3.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
FSAJX Fidelity SAI Tax-Free Bond Fund	3.30%	4.25%	3.08%	2.75%	1.72%	1.50%	2.03%	2.79%	0.44%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	3.10%	3.06%	0.35%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FSAJX and VSDM in my portfolio?

FSAJX and VSDM have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FSAJX or VSDM?

FSAJX has higher volatility (0.79%) compared to VSDM (0.32%). In terms of maximum drawdown, FSAJX dropped -15.16% vs VSDM's -1.81%.

Which has better risk-adjusted returns?

VSDM currently has the higher Sharpe Ratio (3.32 vs 2.56), 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.