VCRM vs. VSDM

Last updated Apr 2, 2026

Compare and contrast key facts about Vanguard Core Tax-Exempt Bond ETF (VCRM) and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM).

VCRM and VSDM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VCRM is a passively managed fund by Vanguard that tracks the performance of the S&P Broad AMT-Free Municipal Bond Index. It was launched on Nov 21, 2024. VSDM is an actively managed fund by Vanguard. It was launched on Nov 21, 2024.

Performance

VCRM vs. VSDM - Performance Comparison

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

VCRM vs. VSDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VCRM Vanguard Core Tax-Exempt Bond ETF	0.34%	4.91%	-0.58%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	0.47%	5.39%	-0.15%

Returns By Period

In the year-to-date period, VCRM achieves a 0.34% return, which is significantly lower than VSDM's 0.47% return.

VCRM

• 1D: 0.30%
• 1M: -1.55%
• YTD: 0.34%
• 6M: 1.86%
• 1Y: 4.77%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VSDM

• 1D: 0.17%
• 1M: -0.94%
• YTD: 0.47%
• 6M: 1.20%
• 1Y: 4.31%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VCRM vs. VSDM - Expense Ratio Comparison

Both VCRM and VSDM have an expense ratio of 0.12%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

VCRM

Vanguard Core Tax-Exempt Bond ETF

VSDM

Vanguard Short Duration Tax-Exempt Bond ETF

Return for Risk

VCRM vs. VSDM — Risk / Return Rank

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

VCRM

VCRM Risk / Return Rank: 59
VCRM Sharpe Ratio Rank: 65
VCRM Sortino Ratio Rank: 56
VCRM Omega Ratio Rank: 68
VCRM Calmar Ratio Rank: 59
VCRM Martin Ratio Rank: 45

VSDM

VSDM Risk / Return Rank: 88
VSDM Sharpe Ratio Rank: 91
VSDM Sortino Ratio Rank: 90
VSDM Omega Ratio Rank: 97
VSDM Calmar Ratio Rank: 82
VSDM Martin Ratio Rank: 78

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. VSDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Core Tax-Exempt Bond ETF (VCRM) and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM). 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	VSDM	Difference
Sharpe ratio Return per unit of total volatility	1.20	2.09	-0.89
Sortino ratio Return per unit of downside risk	1.53	2.62	-1.09
Omega ratio Gain probability vs. loss probability	1.26	1.56	-0.29
Calmar ratio Return relative to maximum drawdown	1.63	2.53	-0.90
Martin ratio Return relative to average drawdown	4.63	9.01	-4.38
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCRM vs. VSDM - Sharpe Ratio Comparison

The current VCRM Sharpe Ratio is 1.20, which is lower than the VSDM Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of VCRM and VSDM, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	VCRM	VSDM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.20	2.09	-0.89
Sharpe Ratio (All Time) Calculated using the full available price history	0.86	2.10	-1.24

Correlation

The correlation between VCRM and VSDM is 0.68, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

VCRM vs. VSDM - Dividend Comparison

VCRM's dividend yield for the trailing twelve months is around 3.59%, more than VSDM's 3.11% yield.

	TTM	2025	2024
VCRM Vanguard Core Tax-Exempt Bond ETF	3.59%	3.42%	0.40%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	3.11%	3.06%	0.35%

Drawdowns

VCRM vs. VSDM - Drawdown Comparison

The maximum VCRM drawdown since its inception was -4.12%, which is greater than VSDM's maximum drawdown of -1.81%. Use the drawdown chart below to compare losses from any high point for VCRM and VSDM.

Drawdown Indicators

	VCRM	VSDM	Difference
Max Drawdown Largest peak-to-trough decline	-4.12%	-1.81%	-2.31%
Max Drawdown (1Y) Largest decline over 1 year	-3.22%	-1.81%	-1.41%
Current Drawdown Current decline from peak	-1.83%	-1.08%	-0.75%
Average Drawdown Average peak-to-trough decline	-1.15%	-0.27%	-0.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.13%	0.51%	+0.62%

Volatility

VCRM vs. VSDM - Volatility Comparison

Vanguard Core Tax-Exempt Bond ETF (VCRM) has a higher volatility of 1.49% compared to Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) at 0.73%. This indicates that VCRM's price experiences larger fluctuations and is considered to be riskier than VSDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCRM	VSDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.49%	0.73%	+0.76%
Volatility (6M) Calculated over the trailing 6-month period	2.07%	1.01%	+1.06%
Volatility (1Y) Calculated over the trailing 1-year period	4.02%	2.09%	+1.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.00%	2.02%	+1.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.00%	2.02%	+1.98%