SHM vs. VTEB
SHM (SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds - SHM tracks the Bloomberg Municipal Managed Money Short while VTEB tracks the S&P National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 10 years, SHM returned 1.10%/yr vs 1.88%/yr for VTEB. Their 0.54 correlation means they have sometimes moved together and sometimes differently. SHM charges 0.20%/yr vs 0.03%/yr for VTEB.
Performance
SHM vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, SHM achieves a 0.54% return, which is significantly higher than VTEB's 0.31% return. Over the past 10 years, SHM has underperformed VTEB with an annualized return of 1.10%, while VTEB has yielded a comparatively higher 1.88% annualized return.
SHM
- 1D
- 0.00%
- 1M
- -0.61%
- 6M
- -0.17%
- YTD
- 0.54%
- 1Y
- 1.54%
- 3Y*
- 2.72%
- 5Y*
- 0.82%
- 10Y*
- 1.10%
- ALL TIME*
- 1.76%
VTEB
- 1D
- -0.10%
- 1M
- -1.84%
- 6M
- -0.23%
- YTD
- 0.31%
- 1Y
- 4.77%
- 3Y*
- 2.92%
- 5Y*
- 0.53%
- 10Y*
- 1.88%
- ALL TIME*
- 2.28%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $9.50M | $14.07M | $11.05M | |
| $377.87M | $352.76M | $360.69M |
SHM vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHM SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF | 0.54% | 3.95% | 1.22% | 2.92% | -3.82% | -0.37% | 2.65% | 3.64% | 1.56% | 0.99% |
VTEB Vanguard Tax-Exempt Bond ETF | 0.31% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
Correlation
The correlation between SHM and VTEB is 0.55, 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. | 0.55 |
Correlation (3Y) Balances recent behavior with more history. | 0.67 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.64 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.56 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.54 |
The correlation between SHM and VTEB shifts across timeframes, from 0.54 (all time) to 0.67 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
SHM vs. VTEB — Risk / Return Rank
SHM
VTEB
SHM vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF (SHM) 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.
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.
| SHM | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.54 | ||
| Sortino ratioReturn per unit of downside risk | -0.74 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.41 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 1.67 | 2.00 | -0.33 |
| Martin ratioReturn relative to average drawdown | 4.09 | 6.62 | -2.52 |
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Drawdowns
SHM vs. VTEB - Drawdown Comparison
The maximum SHM drawdown since its inception was -11.61%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for SHM and VTEB.
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Drawdown Indicators
| SHM | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -11.61% | -17.00% | +5.39% |
Max Drawdown (1Y)Largest decline over 1 year | -1.13% | -2.71% | +1.58% |
Max Drawdown (3Y)Largest decline over 3 years | -1.67% | -4.76% | +3.09% |
Max Drawdown (5Y)Largest decline over 5 years | -6.67% | -12.56% | +5.89% |
Max Drawdown (10Y)Largest decline over 10 years | -11.61% | -17.00% | +5.39% |
Current DrawdownCurrent decline from peak | -0.63% | -1.86% | +1.23% |
Average DrawdownAverage peak-to-trough decline | -0.96% | -2.30% | +1.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.46% | 0.82% | -0.36% |
Volatility
SHM vs. VTEB - Volatility Comparison
The current volatility for SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF (SHM) is 0.52%, while Vanguard Tax-Exempt Bond ETF (VTEB) has a volatility of 0.88%. This indicates that SHM experiences smaller price fluctuations and is considered to be less risky than VTEB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHM | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.52% | 0.88% | -0.36% |
Volatility (6M)Calculated over the trailing 6-month period | 0.96% | 2.22% | -1.26% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.34% | 2.79% | -1.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.08% | 3.92% | -1.84% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.31% | 5.25% | -1.94% |
SHM vs. VTEB - Expense Ratio Comparison
SHM has a 0.20% expense ratio, which is higher than VTEB's 0.03% 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
SHM vs. VTEB - Dividend Comparison
SHM's dividend yield for the trailing twelve months is around 2.68%, less than VTEB's 3.42% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SHM SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF | 2.47% | 2.61% | 2.06% | 1.15% | 0.69% | 0.86% | 1.24% | 1.40% | 1.23% | 1.06% | 0.94% | 0.92% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.14% | 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
SHM and VTEB have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEB has higher volatility (0.88%) compared to SHM (0.52%). In terms of maximum drawdown, SHM dropped -11.61% vs VTEB's -17.00%.
On 10-year performance, VTEB leads with 1.88% vs 1.10% for SHM. On fees, VTEB is cheaper at 0.03% per year. On volatility, SHM has been the lower-risk option at 0.52%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VTEB has performed better with a 1.88% return vs 1.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTEB is cheaper with a 0.03% expense ratio, compared with 0.20% for SHM.
VTEB has the higher dividend yield at 3.14%, compared with 2.47% for SHM.
SHM tracks Bloomberg Municipal Managed Money Short, while VTEB tracks S&P National AMT-Free Municipal Bond Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.20% for SHM and 0.03% for VTEB.
VTEB currently has the higher Sharpe Ratio (1.95 vs 1.41), 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.
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