PMIO vs. VTES

Last updated Aug 2, 2026

PMIO (PGIM Municipal Income Opportunities ETF) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds. PMIO is actively managed, while VTES is passively managed. Over the past year, PMIO returned 4.62% vs 1.66% for VTES. Their 0.65 correlation means they have sometimes moved together and sometimes differently. PMIO charges 0.25%/yr vs 0.07%/yr for VTES.

Performance

PMIO vs. VTES - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM Municipal Income Opportunities ETF (PMIO) 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, PMIO achieves a 0.66% return, which is significantly higher than VTES's 0.37% return.

PMIO

• 1D: -0.09%
• 1M: -1.50%
• 6M: -0.12%
• YTD: 0.66%
• 1Y: 4.62%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 4.01%

VTES

• 1D: -0.04%
• 1M: -0.61%
• 6M: -0.36%
• YTD: 0.37%
• 1Y: 1.66%
• 3Y*: 2.94%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 2.86%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
PMIO PGIM Municipal Income Opportunities ETF	$97.75K	$113.78K	$210.24K
VTES Vanguard Short-Term Tax-Exempt Bond ETF	$19.78M	$19.18M	$17.67M

PMIO vs. VTES - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PMIO PGIM Municipal Income Opportunities ETF	0.66%	5.30%	2.41%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	0.37%	4.19%	1.96%

Correlation

The correlation between PMIO and VTES is 0.62, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.62
Correlation (All Time) Calculated using the full available price history since Jun 28, 2024	0.65

The correlation between PMIO and VTES has been stable across timeframes, ranging from 0.62 to 0.65 - a consistent structural relationship.

Return for Risk

PMIO vs. VTES — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

PMIO

PMIO Risk / Return Rank: 81
PMIO Sharpe Ratio Rank: 91
PMIO Sortino Ratio Rank: 92
PMIO Omega Ratio Rank: 94
PMIO Calmar Ratio Rank: 66
PMIO Martin Ratio Rank: 60

VTES

VTES Risk / Return Rank: 58
VTES Sharpe Ratio Rank: 69
VTES Sortino Ratio Rank: 65
VTES Omega Ratio Rank: 78
VTES Calmar Ratio Rank: 39
VTES Martin Ratio Rank: 37

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

PMIO vs. VTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM Municipal Income Opportunities ETF (PMIO) 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.

	PMIO	VTES	Difference
Sharpe ratio: Return per unit of total volatility	2.36	1.55	+0.81
Sortino ratio: Return per unit of downside risk	3.41	2.15	+1.26
Omega ratio: Gain probability vs. loss probability	1.51	1.32	+0.19
Calmar ratio: Return relative to maximum drawdown	2.33	1.38	+0.95
Martin ratio: Return relative to average drawdown	7.32	3.68	+3.65

PMIO vs. VTES - Sharpe Ratio Comparison

The current PMIO Sharpe Ratio is 2.36, which is higher than the VTES Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of PMIO 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

PMIO vs. VTES - Drawdown Comparison

The maximum PMIO drawdown since its inception was -3.39%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for PMIO and VTES.

Drawdown Indicators

	PMIO	VTES	Difference
Max Drawdown Largest peak-to-trough decline	-3.39%	-2.42%	-0.97%
Max Drawdown (1Y) Largest decline over 1 year	-2.24%	-1.47%	-0.77%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.59%	—
Current Drawdown Current decline from peak	-1.60%	-0.90%	-0.70%
Average Drawdown Average peak-to-trough decline	-0.65%	-0.50%	-0.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.71%	0.55%	+0.16%

Volatility

PMIO vs. VTES - Volatility Comparison

PGIM Municipal Income Opportunities ETF (PMIO) has a higher volatility of 0.65% compared to Vanguard Short-Term Tax-Exempt Bond ETF (VTES) at 0.45%. This indicates that PMIO'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

	PMIO	VTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.65%	0.45%	+0.20%
Volatility (6M) Calculated over the trailing 6-month period	1.74%	1.03%	+0.71%
Volatility (1Y) Calculated over the trailing 1-year period	2.22%	1.31%	+0.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.02%	1.70%	+1.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.02%	1.70%	+1.32%

PMIO vs. VTES - Expense Ratio Comparison

PMIO has a 0.25% expense ratio, which is higher than VTES's 0.07% 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

PMIO vs. VTES - Dividend Comparison

PMIO's dividend yield for the trailing twelve months is around 4.29%, more than VTES's 2.75% yield.

Position	TTM	2025	2024	2023
PMIO PGIM Municipal Income Opportunities ETF	3.94%	4.00%	2.11%	0.00%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	2.52%	2.77%	2.99%	2.03%

Frequently Asked Questions

Can I hold both PMIO and VTES in my portfolio?

PMIO and VTES have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PMIO or VTES?

PMIO has higher volatility (0.65%) compared to VTES (0.45%). In terms of maximum drawdown, PMIO dropped -3.39% vs VTES's -2.42%.

Which ETF is better, PMIO or VTES?

On 1-year performance, PMIO leads with 4.62% vs 1.66% for VTES. On fees, VTES is cheaper at 0.07% per year. On volatility, VTES has been the lower-risk option at 0.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PMIO or VTES?

Over the 1-year period, PMIO has performed better with a 4.62% return vs 1.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PMIO or VTES?

VTES is cheaper with a 0.07% expense ratio, compared with 0.25% for PMIO.

Which ETF pays a higher dividend yield, PMIO or VTES?

PMIO has the higher dividend yield at 3.94%, compared with 2.52% for VTES.

What is the main difference between PMIO and VTES?

They also come from different issuers: PGIM and Vanguard. Their fees differ too: 0.25% for PMIO and 0.07% for VTES.

Which has better risk-adjusted returns?

PMIO currently has the higher Sharpe Ratio (2.36 vs 1.55), 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.