VDE vs. BSMW

Last updated Jun 5, 2026

VDE (Vanguard Energy ETF) and BSMW (Invesco BulletShares 2032 Municipal Bond ETF) are both exchange-traded funds - VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index, while BSMW is a Municipal Bonds fund tracking the Invesco BulletShares USD Municipal Bond 2032 Index. Both are passively managed. Over the past 3 years, VDE returned 18.32%/yr vs 3.23%/yr for BSMW. At a correlation of -0.12, they often move in opposite directions. VDE charges 0.09%/yr vs 0.18%/yr for BSMW.

Performance

VDE vs. BSMW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Energy ETF (VDE) and Invesco BulletShares 2032 Municipal Bond ETF (BSMW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VDE achieves a 32.48% return, which is significantly higher than BSMW's 1.28% return.

VDE

• 1D: 0.18%
• 1M: -1.99%
• YTD: 32.48%
• 6M: 28.99%
• 1Y: 48.54%
• 3Y*: 18.32%
• 5Y*: 20.47%
• 10Y*: 9.47%

BSMW

• 1D: -0.02%
• 1M: 0.65%
• YTD: 1.28%
• 6M: 1.64%
• 1Y: 6.54%
• 3Y*: 3.23%
• 5Y*: —
• 10Y*: —

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

VDE vs. BSMW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VDE Vanguard Energy ETF	32.48%	7.11%	6.75%	2.01%
BSMW Invesco BulletShares 2032 Municipal Bond ETF	1.28%	3.42%	-0.35%	7.00%

Correlation

The correlation between VDE and BSMW is -0.30, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.30
Correlation (3Y) Calculated over the trailing 3-year period	-0.10
Correlation (All Time) Calculated using the full available price history since Mar 2, 2023	-0.12

The correlation between VDE and BSMW shifts across timeframes, from -0.30 (1 year) to -0.10 (3 years), reflecting how their relationship changes across market environments.

VDE vs. BSMW - Sectors Allocation Comparison

Sectors	VDE	BSMW
Energy	99.5%	-
Basic Materials	0.4%	-
Industrials	0.1%	-
Communication Services	-	-
Consumer Cyclical	-	0.3%
Consumer Defensive	-	-
Financial Services	-	1.7%
Healthcare	-	-
Real Estate	-	-
Technology	-	0.1%
Utilities	-	-

Return for Risk

VDE vs. BSMW — Risk / Return Rank

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

VDE

VDE Risk / Return Rank: 71
VDE Sharpe Ratio Rank: 75
VDE Sortino Ratio Rank: 68
VDE Omega Ratio Rank: 65
VDE Calmar Ratio Rank: 81
VDE Martin Ratio Rank: 67

BSMW

BSMW Risk / Return Rank: 64
BSMW Sharpe Ratio Rank: 74
BSMW Sortino Ratio Rank: 76
BSMW Omega Ratio Rank: 81
BSMW Calmar Ratio Rank: 47
BSMW Martin Ratio Rank: 45

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.

VDE vs. BSMW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) and Invesco BulletShares 2032 Municipal Bond ETF (BSMW). 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.

	VDE	BSMW	Difference
Sharpe ratio: Return per unit of total volatility	2.41	2.35	+0.06
Sortino ratio: Return per unit of downside risk	3.06	3.37	-0.31
Omega ratio: Gain probability vs. loss probability	1.39	1.47	-0.09
Calmar ratio: Return relative to maximum drawdown	4.13	2.25	+1.88
Martin ratio: Return relative to average drawdown	12.11	7.09	+5.02
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VDE vs. BSMW - Sharpe Ratio Comparison

The current VDE Sharpe Ratio is 2.41, which is comparable to the BSMW Sharpe Ratio of 2.35. The chart below compares the historical Sharpe Ratios of VDE and BSMW, 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

	VDE	BSMW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.41	2.35	+0.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.78	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.32	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.69	-0.41

Drawdowns

VDE vs. BSMW - Drawdown Comparison

The maximum VDE drawdown since its inception was -74.20%, which is greater than BSMW's maximum drawdown of -7.57%. Use the drawdown chart below to compare losses from any high point for VDE and BSMW.

Drawdown Indicators

	VDE	BSMW	Difference
Max Drawdown Largest peak-to-trough decline	-74.20%	-7.57%	-66.63%
Max Drawdown (1Y) Largest decline over 1 year	-11.80%	-2.92%	-8.88%
Max Drawdown (3Y) Largest decline over 3 years	-21.41%	-7.34%	-14.07%
Max Drawdown (5Y) Largest decline over 5 years	-26.58%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-69.29%	—	—
Current Drawdown Current decline from peak	-6.27%	-1.00%	-5.27%
Average Drawdown Average peak-to-trough decline	-19.96%	-1.72%	-18.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.02%	0.92%	+3.10%

Volatility

VDE vs. BSMW - Volatility Comparison

Vanguard Energy ETF (VDE) has a higher volatility of 7.99% compared to Invesco BulletShares 2032 Municipal Bond ETF (BSMW) at 0.92%. This indicates that VDE's price experiences larger fluctuations and is considered to be riskier than BSMW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDE	BSMW	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.99%	0.92%	+7.07%
Volatility (6M) Calculated over the trailing 6-month period	16.27%	1.97%	+14.30%
Volatility (1Y) Calculated over the trailing 1-year period	20.34%	2.81%	+17.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.40%	5.00%	+21.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.93%	5.00%	+24.93%

VDE vs. BSMW - Expense Ratio Comparison

VDE has a 0.09% expense ratio, which is lower than BSMW'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

VDE vs. BSMW - Dividend Comparison

VDE's dividend yield for the trailing twelve months is around 2.37%, less than BSMW's 3.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BSMW Invesco BulletShares 2032 Municipal Bond ETF	3.20%	3.24%	3.48%	2.36%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VDE Vanguard Energy ETF	2.37%	3.11%	3.23%	3.34%	3.65%	4.13%	4.76%	3.42%	3.35%	2.90%	2.31%	3.17%

Frequently Asked Questions

Can I hold both VDE and BSMW in my portfolio?

VDE and BSMW have a correlation of -0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VDE or BSMW?

VDE has higher volatility (7.99%) compared to BSMW (0.92%). In terms of maximum drawdown, VDE dropped -74.20% vs BSMW's -7.57%.

Which ETF is better, VDE or BSMW?

On 3-year performance, VDE leads with 18.32% vs 3.23% for BSMW. On fees, VDE is cheaper at 0.09% per year. On volatility, BSMW has been the lower-risk option at 0.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VDE or BSMW?

Over the 3-year period, VDE has performed better with a 18.32% return vs 3.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VDE or BSMW?

VDE is cheaper with a 0.09% expense ratio, compared with 0.18% for BSMW.

Which ETF pays a higher dividend yield, VDE or BSMW?

BSMW has the higher dividend yield at 3.20%, compared with 2.37% for VDE.

What is the main difference between VDE and BSMW?

VDE is categorized as Energy Equities, while BSMW is Municipal Bonds. VDE tracks MSCI US Investable Market Energy 25/50 Index, while BSMW tracks Invesco BulletShares USD Municipal Bond 2032 Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.09% for VDE and 0.18% for BSMW.

Which has better risk-adjusted returns?

VDE currently has the higher Sharpe Ratio (2.41 vs 2.35), 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.