SHYD vs. VTEB
SHYD (VanEck Short High Yield Muni ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds - SHYD tracks the Bloomberg Municipal High Yield Short Duration while VTEB tracks the S&P National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 10 years, SHYD returned 2.07%/yr vs 2.12%/yr for VTEB. At a 0.40 correlation, their price movements are largely independent. SHYD charges 0.35%/yr vs 0.03%/yr for VTEB.
Performance
SHYD vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, SHYD achieves a 0.97% return, which is significantly lower than VTEB's 1.60% return. Both investments have delivered pretty close results over the past 10 years, with SHYD having a 2.07% annualized return and VTEB not far ahead at 2.12%.
SHYD
- 1D
- 0.22%
- 1M
- 0.70%
- YTD
- 0.97%
- 6M
- 1.71%
- 1Y
- 5.18%
- 3Y*
- 4.46%
- 5Y*
- 0.97%
- 10Y*
- 2.07%
VTEB
- 1D
- 0.14%
- 1M
- 0.75%
- YTD
- 1.60%
- 6M
- 2.05%
- 1Y
- 7.03%
- 3Y*
- 3.54%
- 5Y*
- 0.91%
- 10Y*
- 2.12%
SHYD vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHYD VanEck Short High Yield Muni ETF | 0.97% | 5.58% | 4.85% | 2.39% | -9.11% | 4.04% | 1.56% | 7.55% | 3.26% | 4.89% |
VTEB Vanguard Tax-Exempt Bond ETF | 1.60% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
Correlation
The correlation between SHYD and VTEB is 0.54, 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 | 0.54 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.45 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.47 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.41 |
Correlation (All Time) Calculated using the full available price history since Aug 26, 2015 | 0.40 |
The correlation between SHYD and VTEB shifts across timeframes, from 0.40 (all time) to 0.54 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
SHYD vs. VTEB — Risk / Return Rank
SHYD
VTEB
SHYD vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for VanEck Short High Yield Muni ETF (SHYD) 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.
| SHYD | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.86 | ||
| Sortino ratioReturn per unit of downside risk | -1.25 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.57 | -0.22 |
| Calmar ratioReturn relative to maximum drawdown | 2.40 | 2.60 | -0.21 |
| Martin ratioReturn relative to average drawdown | 7.88 | 9.25 | -1.38 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SHYD | VTEB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.74 | 2.61 | -0.86 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.18 | 0.23 | -0.05 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.21 | 0.40 | -0.19 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.26 | 0.48 | -0.22 |
Drawdowns
SHYD vs. VTEB - Drawdown Comparison
The maximum SHYD drawdown since its inception was -31.22%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for SHYD and VTEB.
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Drawdown Indicators
| SHYD | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -31.22% | -17.00% | -14.22% |
Max Drawdown (1Y)Largest decline over 1 year | -2.17% | -2.71% | +0.54% |
Max Drawdown (3Y)Largest decline over 3 years | -4.17% | -5.53% | +1.36% |
Max Drawdown (5Y)Largest decline over 5 years | -13.32% | -12.64% | -0.68% |
Max Drawdown (10Y)Largest decline over 10 years | -31.22% | -17.00% | -14.22% |
Current DrawdownCurrent decline from peak | -0.17% | -0.38% | +0.21% |
Average DrawdownAverage peak-to-trough decline | -3.03% | -2.33% | -0.70% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.66% | 0.76% | -0.10% |
Volatility
SHYD vs. VTEB - Volatility Comparison
VanEck Short High Yield Muni ETF (SHYD) and Vanguard Tax-Exempt Bond ETF (VTEB) have volatilities of 0.86% and 0.90%, 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.
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Volatility by Period
| SHYD | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.86% | 0.90% | -0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 1.93% | 2.01% | -0.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.00% | 2.72% | +0.28% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.37% | 3.90% | +1.47% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.69% | 5.26% | +4.43% |
SHYD vs. VTEB - Expense Ratio Comparison
SHYD has a 0.35% expense ratio, which is higher than VTEB's 0.03% expense ratio.
Dividends
SHYD vs. VTEB - Dividend Comparison
SHYD's dividend yield for the trailing twelve months is around 3.50%, more than VTEB's 3.35% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SHYD VanEck Short High Yield Muni ETF | 3.50% | 3.50% | 3.16% | 2.99% | 2.66% | 2.56% | 3.05% | 3.19% | 3.17% | 3.11% | 2.97% | 3.26% |
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
SHYD and VTEB have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEB has higher volatility (0.90%) compared to SHYD (0.86%). In terms of maximum drawdown, SHYD dropped -31.22% vs VTEB's -17.00%.
On 10-year performance, VTEB leads with 2.12% vs 2.07% for SHYD. On fees, VTEB is cheaper at 0.03% per year. Their volatility is very similar. 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 2.12% return vs 2.07%. 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 0.35% for SHYD.
SHYD has the higher dividend yield at 3.50%, compared with 3.35% for VTEB.
SHYD tracks Bloomberg Municipal High Yield Short Duration, while VTEB tracks S&P National AMT-Free Municipal Bond Index. They also come from different issuers: VanEck and Vanguard. Their fees differ too: 0.35% for SHYD and 0.03% for VTEB.
VTEB currently has the higher Sharpe Ratio (2.61 vs 1.74), 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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