FSDAX vs. VTES

Last updated Jun 13, 2026

FSDAX (Fidelity Select Defense & Aerospace Portfolio) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF) are both funds - FSDAX is a Aerospace & Defense fund actively managed by Fidelity, while VTES is a Municipal Bonds fund tracking the S&P 0-7 Year National AMT-Free Municipal Bond Index. FSDAX is actively managed, while VTES is passively managed. Over the past 3 years, FSDAX returned 28.86%/yr vs 3.18%/yr for VTES. At a 0.08 correlation, their price movements are largely independent. FSDAX charges 0.63%/yr vs 0.07%/yr for VTES.

Performance

FSDAX vs. VTES - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Select Defense & Aerospace Portfolio (FSDAX) 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, FSDAX achieves a 10.72% return, which is significantly higher than VTES's 0.67% return.

FSDAX

• 1D: 5.04%
• 1M: 6.21%
• YTD: 10.72%
• 6M: 14.07%
• 1Y: 31.26%
• 3Y*: 28.86%
• 5Y*: 16.94%
• 10Y*: 15.96%

VTES

• 1D: -0.03%
• 1M: 0.42%
• YTD: 0.67%
• 6M: 0.96%
• 1Y: 3.39%
• 3Y*: 3.18%
• 5Y*: —
• 10Y*: —

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

FSDAX vs. VTES - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FSDAX Fidelity Select Defense & Aerospace Portfolio	10.72%	50.03%	15.83%	12.53%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	0.67%	4.19%	1.85%	3.32%

Correlation

The correlation between FSDAX and VTES is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.12
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023	0.08

The correlation between FSDAX and VTES shifts across timeframes, from 0.08 (all time) to 0.21 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FSDAX vs. VTES — Risk / Return Rank

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

FSDAX

FSDAX Risk / Return Rank: 36
FSDAX Sharpe Ratio Rank: 37
FSDAX Sortino Ratio Rank: 39
FSDAX Omega Ratio Rank: 35
FSDAX Calmar Ratio Rank: 38
FSDAX Martin Ratio Rank: 29

VTES

VTES Risk / Return Rank: 75
VTES Sharpe Ratio Rank: 90
VTES Sortino Ratio Rank: 92
VTES Omega Ratio Rank: 94
VTES Calmar Ratio Rank: 52
VTES Martin Ratio Rank: 46

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.

FSDAX vs. VTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Select Defense & Aerospace Portfolio (FSDAX) 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.

	FSDAX	VTES	Difference
Sharpe ratio: Return per unit of total volatility	1.38	2.70	-1.31
Sortino ratio: Return per unit of downside risk	2.06	3.88	-1.82
Omega ratio: Gain probability vs. loss probability	1.25	1.62	-0.38
Calmar ratio: Return relative to maximum drawdown	1.89	2.28	-0.39
Martin ratio: Return relative to average drawdown	5.40	6.62	-1.22

FSDAX vs. VTES - Sharpe Ratio Comparison

The current FSDAX Sharpe Ratio is 1.38, which is lower than the VTES Sharpe Ratio of 2.70. The chart below compares the historical Sharpe Ratios of FSDAX 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

FSDAX vs. VTES - Drawdown Comparison

The maximum FSDAX drawdown since its inception was -60.59%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for FSDAX and VTES.

Drawdown Indicators

	FSDAX	VTES	Difference
Max Drawdown Largest peak-to-trough decline	-60.59%	-2.42%	-58.17%
Max Drawdown (1Y) Largest decline over 1 year	-16.13%	-1.47%	-14.66%
Max Drawdown (3Y) Largest decline over 3 years	-16.13%	-1.80%	-14.33%
Max Drawdown (5Y) Largest decline over 5 years	-22.48%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-47.08%	—	—
Current Drawdown Current decline from peak	-3.72%	-0.60%	-3.12%
Average Drawdown Average peak-to-trough decline	-10.45%	-0.50%	-9.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.63%	0.50%	+5.13%

Volatility

FSDAX vs. VTES - Volatility Comparison

Fidelity Select Defense & Aerospace Portfolio (FSDAX) has a higher volatility of 9.17% compared to Vanguard Short-Term Tax-Exempt Bond ETF (VTES) at 0.35%. This indicates that FSDAX'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

	FSDAX	VTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.17%	0.35%	+8.82%
Volatility (6M) Calculated over the trailing 6-month period	19.00%	0.98%	+18.02%
Volatility (1Y) Calculated over the trailing 1-year period	22.00%	1.24%	+20.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.63%	1.71%	+18.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.44%	1.71%	+20.73%

FSDAX vs. VTES - Expense Ratio Comparison

FSDAX has a 0.63% expense ratio, which is higher than VTES's 0.07% expense ratio.

Dividends

FSDAX vs. VTES - Dividend Comparison

FSDAX's dividend yield for the trailing twelve months is around 2.06%, less than VTES's 2.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FSDAX Fidelity Select Defense & Aerospace Portfolio	2.06%	4.48%	7.68%	6.47%	8.87%	8.38%	2.11%	2.62%	11.45%	3.57%	4.87%	6.30%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	2.75%	2.77%	2.99%	2.03%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FSDAX and VTES in my portfolio?

FSDAX and VTES have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FSDAX or VTES?

FSDAX has higher volatility (9.17%) compared to VTES (0.35%). In terms of maximum drawdown, FSDAX dropped -60.59% vs VTES's -2.42%.

Which has better risk-adjusted returns?

VTES currently has the higher Sharpe Ratio (2.70 vs 1.38), 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.