VCRM vs. JAAA

Last updated Jun 4, 2026

VCRM (Vanguard Core Tax-Exempt Bond ETF) and JAAA (Janus Henderson AAA CLO ETF) are both exchange-traded funds - VCRM is a Municipal Bonds fund tracking the S&P Broad AMT-Free Municipal Bond Index, while JAAA is a CLO fund actively managed by Janus Henderson. VCRM is passively managed, while JAAA is actively managed. Over the past year, VCRM returned 8.18% vs 5.06% for JAAA. At a 0.08 correlation, their price movements are largely independent. VCRM charges 0.12%/yr vs 0.21%/yr for JAAA.

Performance

VCRM vs. JAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Core Tax-Exempt Bond ETF (VCRM) and Janus Henderson AAA CLO ETF (JAAA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with VCRM having a 1.95% return and JAAA slightly lower at 1.87%.

VCRM

• 1D: -0.06%
• 1M: 0.74%
• YTD: 1.95%
• 6M: 2.36%
• 1Y: 8.18%
• 3Y*: —
• 5Y*: —
• 10Y*: —

JAAA

• 1D: -0.02%
• 1M: 0.39%
• YTD: 1.87%
• 6M: 2.45%
• 1Y: 5.06%
• 3Y*: 6.71%
• 5Y*: 4.79%
• 10Y*: —

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

VCRM vs. JAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VCRM Vanguard Core Tax-Exempt Bond ETF	1.95%	4.91%	-0.58%
JAAA Janus Henderson AAA CLO ETF	1.87%	5.16%	0.62%

Correlation

The correlation between VCRM and JAAA is 0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.07
Correlation (All Time) Calculated using the full available price history since Nov 22, 2024	0.08

Return for Risk

VCRM vs. JAAA — Risk / Return Rank

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

VCRM

VCRM Risk / Return Rank: 76
VCRM Sharpe Ratio Rank: 82
VCRM Sortino Ratio Rank: 87
VCRM Omega Ratio Rank: 90
VCRM Calmar Ratio Rank: 60
VCRM Martin Ratio Rank: 62

JAAA

JAAA Risk / Return Rank: 98
JAAA Sharpe Ratio Rank: 98
JAAA Sortino Ratio Rank: 99
JAAA Omega Ratio Rank: 99
JAAA Calmar Ratio Rank: 98
JAAA Martin Ratio Rank: 98

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.

VCRM vs. JAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Core Tax-Exempt Bond ETF (VCRM) and Janus Henderson AAA CLO ETF (JAAA). 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	JAAA	Difference
Sharpe ratio: Return per unit of total volatility	2.70	5.98	-3.29
Sortino ratio: Return per unit of downside risk	3.99	10.04	-6.06
Omega ratio: Gain probability vs. loss probability	1.59	2.69	-1.10
Calmar ratio: Return relative to maximum drawdown	3.02	13.07	-10.06
Martin ratio: Return relative to average drawdown	11.19	70.18	-58.98
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCRM vs. JAAA - Sharpe Ratio Comparison

The current VCRM Sharpe Ratio is 2.70, which is lower than the JAAA Sharpe Ratio of 5.98. The chart below compares the historical Sharpe Ratios of VCRM and JAAA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VCRM	JAAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.70	5.98	-3.29
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	2.87	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.07	2.77	-1.71

Drawdowns

VCRM vs. JAAA - Drawdown Comparison

The maximum VCRM drawdown since its inception was -4.12%, which is greater than JAAA's maximum drawdown of -2.64%. Use the drawdown chart below to compare losses from any high point for VCRM and JAAA.

Drawdown Indicators

	VCRM	JAAA	Difference
Max Drawdown Largest peak-to-trough decline	-4.12%	-2.64%	-1.48%
Max Drawdown (1Y) Largest decline over 1 year	-2.72%	-0.39%	-2.33%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.46%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-2.64%	—
Current Drawdown Current decline from peak	-0.26%	-0.02%	-0.24%
Average Drawdown Average peak-to-trough decline	-1.13%	-0.25%	-0.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.73%	0.07%	+0.66%

Volatility

VCRM vs. JAAA - Volatility Comparison

Vanguard Core Tax-Exempt Bond ETF (VCRM) has a higher volatility of 0.98% compared to Janus Henderson AAA CLO ETF (JAAA) at 0.13%. This indicates that VCRM's price experiences larger fluctuations and is considered to be riskier than JAAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCRM	JAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.98%	0.13%	+0.85%
Volatility (6M) Calculated over the trailing 6-month period	2.17%	0.64%	+1.53%
Volatility (1Y) Calculated over the trailing 1-year period	3.05%	0.85%	+2.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.89%	1.68%	+2.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.89%	1.64%	+2.25%

VCRM vs. JAAA - Expense Ratio Comparison

VCRM has a 0.12% expense ratio, which is lower than JAAA's 0.21% 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. JAAA - Dividend Comparison

VCRM's dividend yield for the trailing twelve months is around 3.64%, less than JAAA's 5.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
JAAA Janus Henderson AAA CLO ETF	5.00%	5.30%	6.35%	6.11%	2.74%	1.21%	0.26%
VCRM Vanguard Core Tax-Exempt Bond ETF	3.64%	3.42%	0.40%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VCRM and JAAA in my portfolio?

VCRM and JAAA have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VCRM or JAAA?

VCRM has higher volatility (0.98%) compared to JAAA (0.13%). In terms of maximum drawdown, VCRM dropped -4.12% vs JAAA's -2.64%.

Which ETF is better, VCRM or JAAA?

On 1-year performance, VCRM leads with 8.18% vs 5.06% for JAAA. On fees, VCRM is cheaper at 0.12% per year. On volatility, JAAA has been the lower-risk option at 0.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VCRM or JAAA?

Over the 1-year period, VCRM has performed better with a 8.18% return vs 5.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VCRM or JAAA?

VCRM is cheaper with a 0.12% expense ratio, compared with 0.21% for JAAA.

Which ETF pays a higher dividend yield, VCRM or JAAA?

JAAA has the higher dividend yield at 5.00%, compared with 3.64% for VCRM.

What is the main difference between VCRM and JAAA?

VCRM is categorized as Municipal Bonds, while JAAA is CLO. They also come from different issuers: Vanguard and Janus Henderson. Their fees differ too: 0.12% for VCRM and 0.21% for JAAA.

Which has better risk-adjusted returns?

JAAA currently has the higher Sharpe Ratio (5.98 vs 2.70), 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.