MUNY vs. BSMQ

Last updated Jun 25, 2026

MUNY (Vanguard New York Tax-Exempt Bond ETF) and BSMQ (Invesco BulletShares 2026 Municipal Bond ETF) are both Municipal Bonds funds - MUNY tracks the S&P New York AMT-Free Municipal USD10 Million Par Bond Index while BSMQ tracks the Invesco BulletShares Municipal Bond 2026 Index. Both are passively managed. Over the past year, MUNY returned 6.50% vs 2.94% for BSMQ. At a 0.18 correlation, their price movements are largely independent. MUNY charges 0.09%/yr vs 0.18%/yr for BSMQ.

Performance

MUNY vs. BSMQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard New York Tax-Exempt Bond ETF (MUNY) and Invesco BulletShares 2026 Municipal Bond ETF (BSMQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MUNY achieves a 1.79% return, which is significantly higher than BSMQ's 1.01% return.

MUNY

• 1D: 0.09%
• 1M: 1.50%
• YTD: 1.79%
• 6M: 1.75%
• 1Y: 6.50%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BSMQ

• 1D: -0.08%
• 1M: 0.27%
• YTD: 1.01%
• 6M: 1.09%
• 1Y: 2.94%
• 3Y*: 2.79%
• 5Y*: 0.38%
• 10Y*: —

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

MUNY vs. BSMQ - Yearly Performance Comparison

	2026 (YTD)	2025
MUNY Vanguard New York Tax-Exempt Bond ETF	1.79%	5.60%
BSMQ Invesco BulletShares 2026 Municipal Bond ETF	1.01%	2.37%

Correlation

The correlation between MUNY and BSMQ is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.16
Correlation (All Time) Calculated using the full available price history since May 22, 2025	0.18

Return for Risk

MUNY vs. BSMQ — Risk / Return Rank

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

MUNY

MUNY Risk / Return Rank: 72
MUNY Sharpe Ratio Rank: 81
MUNY Sortino Ratio Rank: 83
MUNY Omega Ratio Rank: 90
MUNY Calmar Ratio Rank: 56
MUNY Martin Ratio Rank: 53

BSMQ

BSMQ Risk / Return Rank: 89
BSMQ Sharpe Ratio Rank: 80
BSMQ Sortino Ratio Rank: 89
BSMQ Omega Ratio Rank: 86
BSMQ Calmar Ratio Rank: 97
BSMQ Martin Ratio Rank: 94

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.

MUNY vs. BSMQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard New York Tax-Exempt Bond ETF (MUNY) and Invesco BulletShares 2026 Municipal Bond ETF (BSMQ). 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.

	MUNY	BSMQ	Difference
Sharpe ratio: Return per unit of total volatility	2.26	2.24	+0.02
Sortino ratio: Return per unit of downside risk	3.25	3.57	-0.33
Omega ratio: Gain probability vs. loss probability	1.51	1.46	+0.05
Calmar ratio: Return relative to maximum drawdown	2.42	9.00	-6.58
Martin ratio: Return relative to average drawdown	8.11	23.77	-15.66

MUNY vs. BSMQ - Sharpe Ratio Comparison

The current MUNY Sharpe Ratio is 2.26, which is comparable to the BSMQ Sharpe Ratio of 2.24. The chart below compares the historical Sharpe Ratios of MUNY and BSMQ, 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

MUNY vs. BSMQ - Drawdown Comparison

The maximum MUNY drawdown since its inception was -2.70%, smaller than the maximum BSMQ drawdown of -13.18%. Use the drawdown chart below to compare losses from any high point for MUNY and BSMQ.

Drawdown Indicators

	MUNY	BSMQ	Difference
Max Drawdown Largest peak-to-trough decline	-2.70%	-13.18%	+10.48%
Max Drawdown (1Y) Largest decline over 1 year	-2.70%	-0.33%	-2.37%
Max Drawdown (3Y) Largest decline over 3 years	—	-2.53%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-11.50%	—
Current Drawdown Current decline from peak	-0.20%	-0.08%	-0.12%
Average Drawdown Average peak-to-trough decline	-0.65%	-3.44%	+2.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.80%	0.12%	+0.68%

Volatility

MUNY vs. BSMQ - Volatility Comparison

Vanguard New York Tax-Exempt Bond ETF (MUNY) has a higher volatility of 0.75% compared to Invesco BulletShares 2026 Municipal Bond ETF (BSMQ) at 0.41%. This indicates that MUNY's price experiences larger fluctuations and is considered to be riskier than BSMQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MUNY	BSMQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.75%	0.41%	+0.34%
Volatility (6M) Calculated over the trailing 6-month period	2.35%	0.94%	+1.41%
Volatility (1Y) Calculated over the trailing 1-year period	2.89%	1.32%	+1.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.86%	2.66%	+1.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.86%	4.77%	-0.91%

MUNY vs. BSMQ - Expense Ratio Comparison

MUNY has a 0.09% expense ratio, which is lower than BSMQ's 0.18% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

MUNY vs. BSMQ - Dividend Comparison

MUNY's dividend yield for the trailing twelve months is around 3.10%, more than BSMQ's 2.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
BSMQ Invesco BulletShares 2026 Municipal Bond ETF	2.75%	2.74%	2.75%	2.47%	1.60%	1.14%	1.57%	0.44%
MUNY Vanguard New York Tax-Exempt Bond ETF	3.10%	1.80%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MUNY and BSMQ in my portfolio?

MUNY and BSMQ have a correlation of 0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MUNY or BSMQ?

MUNY has higher volatility (0.75%) compared to BSMQ (0.41%). In terms of maximum drawdown, MUNY dropped -2.70% vs BSMQ's -13.18%.

Which ETF is better, MUNY or BSMQ?

On 1-year performance, MUNY leads with 6.50% vs 2.94% for BSMQ. On fees, MUNY is cheaper at 0.09% per year. On volatility, BSMQ has been the lower-risk option at 0.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MUNY or BSMQ?

Over the 1-year period, MUNY has performed better with a 6.50% return vs 2.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MUNY or BSMQ?

MUNY is cheaper with a 0.09% expense ratio, compared with 0.18% for BSMQ.

Which ETF pays a higher dividend yield, MUNY or BSMQ?

MUNY has the higher dividend yield at 3.10%, compared with 2.75% for BSMQ.

What is the main difference between MUNY and BSMQ?

MUNY tracks S&P New York AMT-Free Municipal USD10 Million Par Bond Index, while BSMQ tracks Invesco BulletShares Municipal Bond 2026 Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.09% for MUNY and 0.18% for BSMQ.

Which has better risk-adjusted returns?

MUNY currently has the higher Sharpe Ratio (2.26 vs 2.24), 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.