GSMIX vs. VTEB

Last updated Jun 4, 2026

GSMIX (Goldman Sachs Dynamic Municipal Income Fund) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds. Over the past 10 years, GSMIX returned 2.50%/yr vs 2.09%/yr for VTEB. A 0.57 correlation means they provide meaningful diversification when combined. GSMIX charges 0.73%/yr vs 0.05%/yr for VTEB.

Performance

GSMIX vs. VTEB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Goldman Sachs Dynamic Municipal Income Fund (GSMIX) and Vanguard Tax-Exempt Bond ETF (VTEB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, GSMIX achieves a 1.66% return, which is significantly higher than VTEB's 1.46% return. Over the past 10 years, GSMIX has outperformed VTEB with an annualized return of 2.50%, while VTEB has yielded a comparatively lower 2.09% annualized return.

GSMIX

• 1D: 0.13%
• 1M: 0.69%
• YTD: 1.66%
• 6M: 2.03%
• 1Y: 6.30%
• 3Y*: 4.28%
• 5Y*: 1.04%
• 10Y*: 2.50%

VTEB

• 1D: -0.06%
• 1M: 0.66%
• YTD: 1.46%
• 6M: 1.89%
• 1Y: 7.14%
• 3Y*: 3.57%
• 5Y*: 0.88%
• 10Y*: 2.09%

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

GSMIX vs. VTEB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
GSMIX Goldman Sachs Dynamic Municipal Income Fund	1.66%	4.12%	3.03%	6.41%	-9.77%	2.80%	3.57%	7.49%	2.83%	5.55%
VTEB Vanguard Tax-Exempt Bond ETF	1.46%	3.72%	1.31%	6.15%	-7.99%	1.14%	5.19%	7.35%	1.04%	4.87%

Correlation

The correlation between GSMIX and VTEB 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	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.70
Correlation (10Y) Calculated over the trailing 10-year period	0.58
Correlation (All Time) Calculated using the full available price history since Aug 26, 2015	0.57

The correlation between GSMIX and VTEB shifts across timeframes, from 0.57 (all time) to 0.72 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

GSMIX vs. VTEB — Risk / Return Rank

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

GSMIX

GSMIX Risk / Return Rank: 69
GSMIX Sharpe Ratio Rank: 82
GSMIX Sortino Ratio Rank: 89
GSMIX Omega Ratio Rank: 90
GSMIX Calmar Ratio Rank: 45
GSMIX Martin Ratio Rank: 41

VTEB

VTEB Risk / Return Rank: 72
VTEB Sharpe Ratio Rank: 80
VTEB Sortino Ratio Rank: 85
VTEB Omega Ratio Rank: 89
VTEB Calmar Ratio Rank: 52
VTEB Martin Ratio Rank: 54

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.

GSMIX vs. VTEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Goldman Sachs Dynamic Municipal Income Fund (GSMIX) and Vanguard Tax-Exempt Bond ETF (VTEB). 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.

	GSMIX	VTEB	Difference
Sharpe ratio Return per unit of total volatility	2.65	2.64	+0.01
Sortino ratio Return per unit of downside risk	4.29	3.92	+0.37
Omega ratio Gain probability vs. loss probability	1.64	1.58	+0.07
Calmar ratio Return relative to maximum drawdown	2.56	2.65	-0.09
Martin ratio Return relative to average drawdown	8.71	9.41	-0.70
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GSMIX vs. VTEB - Sharpe Ratio Comparison

The current GSMIX Sharpe Ratio is 2.65, which is comparable to the VTEB Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of GSMIX and VTEB, 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

	GSMIX	VTEB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.65	2.64	+0.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.23	+0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.64	0.40	+0.24
Sharpe Ratio (All Time) Calculated using the full available price history	0.96	0.47	+0.49

Drawdowns

GSMIX vs. VTEB - Drawdown Comparison

The maximum GSMIX drawdown since its inception was -15.43%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for GSMIX and VTEB.

Drawdown Indicators

	GSMIX	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	-15.43%	-17.00%	+1.57%
Max Drawdown (1Y) Largest decline over 1 year	-2.46%	-2.71%	+0.25%
Max Drawdown (3Y) Largest decline over 3 years	-5.37%	-5.53%	+0.16%
Max Drawdown (5Y) Largest decline over 5 years	-14.33%	-12.64%	-1.69%
Max Drawdown (10Y) Largest decline over 10 years	-14.33%	-17.00%	+2.67%
Current Drawdown Current decline from peak	-0.28%	-0.52%	+0.24%
Average Drawdown Average peak-to-trough decline	-2.40%	-2.33%	-0.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.72%	0.76%	-0.04%

Volatility

GSMIX vs. VTEB - Volatility Comparison

Goldman Sachs Dynamic Municipal Income Fund (GSMIX) and Vanguard Tax-Exempt Bond ETF (VTEB) have volatilities of 0.86% and 0.89%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GSMIX	VTEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.86%	0.89%	-0.03%
Volatility (6M) Calculated over the trailing 6-month period	1.78%	2.01%	-0.23%
Volatility (1Y) Calculated over the trailing 1-year period	2.38%	2.72%	-0.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.67%	3.90%	-0.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.92%	5.26%	-1.34%

GSMIX vs. VTEB - Expense Ratio Comparison

GSMIX has a 0.73% expense ratio, which is higher than VTEB's 0.05% expense ratio.

Dividends

GSMIX vs. VTEB - Dividend Comparison

GSMIX's dividend yield for the trailing twelve months is around 3.49%, more than VTEB's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GSMIX Goldman Sachs Dynamic Municipal Income Fund	3.49%	4.32%	3.31%	2.82%	1.86%	1.92%	2.11%	2.57%	2.79%	2.99%	3.35%	3.43%
VTEB Vanguard Tax-Exempt Bond ETF	3.35%	3.29%	3.14%	2.79%	2.09%	1.64%	1.99%	2.30%	2.25%	1.96%	1.66%	0.58%

Frequently Asked Questions

Can I hold both GSMIX and VTEB in my portfolio?

GSMIX and VTEB 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, GSMIX or VTEB?

VTEB has higher volatility (0.89%) compared to GSMIX (0.86%). In terms of maximum drawdown, GSMIX dropped -15.43% vs VTEB's -17.00%.

Which has better risk-adjusted returns?

GSMIX currently has the higher Sharpe Ratio (2.65 vs 2.64), 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.