VCRM vs. BSMR
VCRM (Vanguard Core Tax-Exempt Bond ETF) and BSMR (Invesco BulletShares 2027 Municipal Bond ETF) are both Municipal Bonds funds - VCRM tracks the S&P Broad AMT-Free Municipal Bond Index while BSMR tracks the Invesco BulletShares Municipal Bond 2027 Index. Both are passively managed. Over the past year, VCRM returned 8.13% vs 3.90% for BSMR. A 0.55 correlation means they provide meaningful diversification when combined. VCRM charges 0.12%/yr vs 0.18%/yr for BSMR.
Performance
VCRM vs. BSMR - Performance Comparison
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Returns By Period
In the year-to-date period, VCRM achieves a 2.08% return, which is significantly higher than BSMR's 0.93% return.
VCRM
- 1D
- 0.13%
- 1M
- 0.80%
- YTD
- 2.08%
- 6M
- 2.57%
- 1Y
- 8.13%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
BSMR
- 1D
- -0.11%
- 1M
- 0.23%
- YTD
- 0.93%
- 6M
- 1.19%
- 1Y
- 3.90%
- 3Y*
- 2.93%
- 5Y*
- 0.45%
- 10Y*
- —
VCRM vs. BSMR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
VCRM Vanguard Core Tax-Exempt Bond ETF | 2.08% | 4.91% | -0.58% |
BSMR Invesco BulletShares 2027 Municipal Bond ETF | 0.93% | 3.10% | -0.15% |
Correlation
The correlation between VCRM and BSMR is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Nov 22, 2024 | 0.55 |
The correlation between VCRM and BSMR has been stable across timeframes, ranging from 0.47 to 0.55 - a consistent structural relationship.
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Return for Risk
VCRM vs. BSMR — Risk / Return Rank
VCRM
BSMR
VCRM vs. BSMR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Core Tax-Exempt Bond ETF (VCRM) and Invesco BulletShares 2027 Municipal Bond ETF (BSMR). 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.
| VCRM | BSMR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.45 | ||
| Sortino ratioReturn per unit of downside risk | -1.22 | ||
| Omega ratioGain probability vs. loss probability | 1.58 | 1.68 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 3.00 | 6.93 | -3.93 |
| Martin ratioReturn relative to average drawdown | 11.11 | 21.96 | -10.85 |
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
| VCRM | BSMR | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.68 | 3.12 | -0.45 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.15 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.09 | 0.21 | +0.88 |
Drawdowns
VCRM vs. BSMR - Drawdown Comparison
The maximum VCRM drawdown since its inception was -4.12%, smaller than the maximum BSMR drawdown of -13.49%. Use the drawdown chart below to compare losses from any high point for VCRM and BSMR.
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Drawdown Indicators
| VCRM | BSMR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -4.12% | -13.49% | +9.37% |
Max Drawdown (1Y)Largest decline over 1 year | -2.72% | -0.57% | -2.15% |
Max Drawdown (3Y)Largest decline over 3 years | — | -3.50% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -12.02% | — |
Current DrawdownCurrent decline from peak | -0.13% | -0.11% | -0.02% |
Average DrawdownAverage peak-to-trough decline | -1.13% | -3.49% | +2.36% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.73% | 0.18% | +0.55% |
Volatility
VCRM vs. BSMR - Volatility Comparison
Vanguard Core Tax-Exempt Bond ETF (VCRM) has a higher volatility of 0.98% compared to Invesco BulletShares 2027 Municipal Bond ETF (BSMR) at 0.37%. This indicates that VCRM's price experiences larger fluctuations and is considered to be riskier than BSMR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCRM | BSMR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.98% | 0.37% | +0.61% |
Volatility (6M)Calculated over the trailing 6-month period | 2.17% | 0.93% | +1.24% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.05% | 1.26% | +1.79% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.89% | 3.03% | +0.86% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.89% | 5.72% | -1.83% |
VCRM vs. BSMR - Expense Ratio Comparison
VCRM has a 0.12% expense ratio, which is lower than BSMR'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
VCRM vs. BSMR - Dividend Comparison
VCRM's dividend yield for the trailing twelve months is around 3.63%, more than BSMR's 2.72% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|---|---|
BSMR Invesco BulletShares 2027 Municipal Bond ETF | 2.72% | 2.77% | 2.78% | 2.72% | 1.40% | 1.00% | 1.49% | 0.45% |
VCRM Vanguard Core Tax-Exempt Bond ETF | 3.63% | 3.42% | 0.40% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
VCRM and BSMR have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCRM has higher volatility (0.98%) compared to BSMR (0.37%). In terms of maximum drawdown, VCRM dropped -4.12% vs BSMR's -13.49%.
On 1-year performance, VCRM leads with 8.13% vs 3.90% for BSMR. On fees, VCRM is cheaper at 0.12% per year. On volatility, BSMR has been the lower-risk option at 0.37%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, VCRM has performed better with a 8.13% return vs 3.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCRM is cheaper with a 0.12% expense ratio, compared with 0.18% for BSMR.
VCRM has the higher dividend yield at 3.63%, compared with 2.72% for BSMR.
VCRM tracks S&P Broad AMT-Free Municipal Bond Index, while BSMR tracks Invesco BulletShares Municipal Bond 2027 Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.12% for VCRM and 0.18% for BSMR.
BSMR currently has the higher Sharpe Ratio (3.12 vs 2.68), 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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