FTBD vs. VFSTX

Last updated Jun 5, 2026

FTBD (Fidelity Tactical Bond ETF) and VFSTX (Vanguard Short-Term Investment-Grade Fund Investor Shares) are both funds - FTBD is a Nontraditional Bonds fund actively managed by Fidelity, while VFSTX is a Total Bond Market fund managed by Vanguard. Over the past 3 years, FTBD returned 5.19%/yr vs 5.49%/yr for VFSTX. A 0.77 correlation means they provide meaningful diversification when combined. FTBD charges 0.55%/yr vs 0.20%/yr for VFSTX.

Performance

FTBD vs. VFSTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Tactical Bond ETF (FTBD) and Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTBD achieves a 1.15% return, which is significantly higher than VFSTX's 0.67% return.

FTBD

• 1D: 0.16%
• 1M: 0.34%
• YTD: 1.15%
• 6M: 1.17%
• 1Y: 5.91%
• 3Y*: 5.19%
• 5Y*: —
• 10Y*: —

VFSTX

• 1D: -0.10%
• 1M: 0.20%
• YTD: 0.67%
• 6M: 1.05%
• 1Y: 4.39%
• 3Y*: 5.49%
• 5Y*: 2.26%
• 10Y*: 2.53%

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

FTBD vs. VFSTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FTBD Fidelity Tactical Bond ETF	1.15%	8.35%	1.77%	3.73%
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares	0.67%	6.75%	4.98%	4.80%

Correlation

The correlation between FTBD and VFSTX is 0.72, 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	0.72
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (All Time) Calculated using the full available price history since Jan 27, 2023	0.77

The correlation between FTBD and VFSTX has been stable across timeframes, ranging from 0.72 to 0.77 - a consistent structural relationship.

FTBD vs. VFSTX - Sectors Allocation Comparison

Sectors	FTBD	VFSTX
Energy	100.0%	-
Basic Materials	-	-
Communication Services	-	100.0%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	100.0%
Industrials	-	-
Real Estate	-	0.0%
Technology	-	0.1%
Utilities	-	-

Return for Risk

FTBD vs. VFSTX — Risk / Return Rank

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

FTBD

FTBD Risk / Return Rank: 40
FTBD Sharpe Ratio Rank: 40
FTBD Sortino Ratio Rank: 40
FTBD Omega Ratio Rank: 38
FTBD Calmar Ratio Rank: 41
FTBD Martin Ratio Rank: 43

VFSTX

VFSTX Risk / Return Rank: 57
VFSTX Sharpe Ratio Rank: 46
VFSTX Sortino Ratio Rank: 71
VFSTX Omega Ratio Rank: 64
VFSTX Calmar Ratio Rank: 50
VFSTX Martin Ratio Rank: 52

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.

FTBD vs. VFSTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Tactical Bond ETF (FTBD) and Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX). 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.

	FTBD	VFSTX	Difference
Sharpe ratio: Return per unit of total volatility	1.39	2.00	-0.61
Sortino ratio: Return per unit of downside risk	2.03	3.53	-1.49
Omega ratio: Gain probability vs. loss probability	1.24	1.45	-0.20
Calmar ratio: Return relative to maximum drawdown	1.99	2.70	-0.71
Martin ratio: Return relative to average drawdown	6.83	10.57	-3.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FTBD vs. VFSTX - Sharpe Ratio Comparison

The current FTBD Sharpe Ratio is 1.39, which is lower than the VFSTX Sharpe Ratio of 2.00. The chart below compares the historical Sharpe Ratios of FTBD and VFSTX, 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

	FTBD	VFSTX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.39	2.00	-0.61
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.76	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.02	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.76	1.51	-0.75

Drawdowns

FTBD vs. VFSTX - Drawdown Comparison

The maximum FTBD drawdown since its inception was -6.98%, smaller than the maximum VFSTX drawdown of -9.35%. Use the drawdown chart below to compare losses from any high point for FTBD and VFSTX.

Drawdown Indicators

	FTBD	VFSTX	Difference
Max Drawdown Largest peak-to-trough decline	-6.98%	-9.35%	+2.37%
Max Drawdown (1Y) Largest decline over 1 year	-2.98%	-1.71%	-1.27%
Max Drawdown (3Y) Largest decline over 3 years	-6.56%	-1.71%	-4.85%
Max Drawdown (5Y) Largest decline over 5 years	—	-9.35%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-9.35%	—
Current Drawdown Current decline from peak	-0.99%	-0.36%	-0.63%
Average Drawdown Average peak-to-trough decline	-1.57%	-1.12%	-0.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.87%	0.43%	+0.44%

Volatility

FTBD vs. VFSTX - Volatility Comparison

Fidelity Tactical Bond ETF (FTBD) has a higher volatility of 1.46% compared to Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) at 0.74%. This indicates that FTBD's price experiences larger fluctuations and is considered to be riskier than VFSTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTBD	VFSTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.46%	0.74%	+0.72%
Volatility (6M) Calculated over the trailing 6-month period	3.17%	1.65%	+1.52%
Volatility (1Y) Calculated over the trailing 1-year period	4.32%	2.31%	+2.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.86%	2.98%	+2.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.86%	2.48%	+3.38%

FTBD vs. VFSTX - Expense Ratio Comparison

FTBD has a 0.55% expense ratio, which is higher than VFSTX's 0.20% expense ratio.

Dividends

FTBD vs. VFSTX - Dividend Comparison

FTBD's dividend yield for the trailing twelve months is around 5.03%, more than VFSTX's 4.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTBD Fidelity Tactical Bond ETF	5.03%	5.04%	4.76%	4.69%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares	4.61%	4.48%	4.06%	3.05%	1.93%	1.70%	2.24%	2.83%	2.68%	2.00%	2.04%	1.99%

Frequently Asked Questions

Can I hold both FTBD and VFSTX in my portfolio?

FTBD and VFSTX have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTBD or VFSTX?

FTBD has higher volatility (1.46%) compared to VFSTX (0.74%). In terms of maximum drawdown, FTBD dropped -6.98% vs VFSTX's -9.35%.

Which has better risk-adjusted returns?

VFSTX currently has the higher Sharpe Ratio (2.00 vs 1.39), 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.