VKQ vs. VTES

Last updated Jun 4, 2026

VKQ (Invesco Municipal Trust) is a stock, while VTES (Vanguard Short-Term Tax-Exempt Bond ETF Shares) is Municipal Bonds fund tracking the S&P 0-7 Yr National AMT-Free Municipal Bond Index - Benchmark TR Gross. Over the past 3 years, VKQ returned 8.25%/yr vs 3.23%/yr for VTES. At a 0.45 correlation, their price movements are largely independent.

Performance

VKQ vs. VTES - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Municipal Trust (VKQ) and Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VKQ achieves a 4.02% return, which is significantly higher than VTES's 0.66% return.

VKQ

• 1D: -0.51%
• 1M: 2.55%
• YTD: 4.02%
• 6M: 5.35%
• 1Y: 14.31%
• 3Y*: 8.25%
• 5Y*: -0.88%
• 10Y*: 2.27%

VTES

• 1D: 0.01%
• 1M: 0.29%
• YTD: 0.66%
• 6M: 1.02%
• 1Y: 3.63%
• 3Y*: 3.23%
• 5Y*: —
• 10Y*: —

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

VKQ vs. VTES - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VKQ Invesco Municipal Trust	4.02%	6.47%	9.70%	5.06%
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	0.66%	4.19%	1.85%	3.32%

Correlation

The correlation between VKQ and VTES is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.33
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (All Time) Calculated using the full available price history since Mar 10, 2023	0.45

The correlation between VKQ and VTES shifts across timeframes, from 0.33 (1 year) to 0.45 (all time), reflecting how their relationship changes across market environments.

Return for Risk

VKQ vs. VTES — Risk / Return Rank

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

VKQ

VKQ Risk / Return Rank: 83
VKQ Sharpe Ratio Rank: 84
VKQ Sortino Ratio Rank: 84
VKQ Omega Ratio Rank: 81
VKQ Calmar Ratio Rank: 79
VKQ Martin Ratio Rank: 87

VTES

VTES Risk / Return Rank: 73
VTES Sharpe Ratio Rank: 87
VTES Sortino Ratio Rank: 90
VTES Omega Ratio Rank: 94
VTES Calmar Ratio Rank: 49
VTES Martin Ratio Rank: 44

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.

VKQ vs. VTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Municipal Trust (VKQ) and Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES). 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.

	VKQ	VTES	Difference
Sharpe ratio: Return per unit of total volatility	1.73	2.94	-1.22
Sortino ratio: Return per unit of downside risk	2.60	4.26	-1.66
Omega ratio: Gain probability vs. loss probability	1.32	1.70	-0.37
Calmar ratio: Return relative to maximum drawdown	2.66	2.48	+0.17
Martin ratio: Return relative to average drawdown	10.07	7.36	+2.70
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VKQ vs. VTES - Sharpe Ratio Comparison

The current VKQ Sharpe Ratio is 1.73, which is lower than the VTES Sharpe Ratio of 2.94. The chart below compares the historical Sharpe Ratios of VKQ and VTES, 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

	VKQ	VTES	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.73	2.94	-1.22
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.08	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.18	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	1.81	-1.56

Drawdowns

VKQ vs. VTES - Drawdown Comparison

The maximum VKQ drawdown since its inception was -51.05%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for VKQ and VTES.

Drawdown Indicators

	VKQ	VTES	Difference
Max Drawdown Largest peak-to-trough decline	-51.05%	-2.42%	-48.63%
Max Drawdown (1Y) Largest decline over 1 year	-5.41%	-1.47%	-3.94%
Max Drawdown (3Y) Largest decline over 3 years	-16.49%	-1.80%	-14.69%
Max Drawdown (5Y) Largest decline over 5 years	-37.29%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-37.29%	—	—
Current Drawdown Current decline from peak	-7.96%	-0.62%	-7.34%
Average Drawdown Average peak-to-trough decline	-9.86%	-0.50%	-9.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.43%	0.49%	+0.94%

Volatility

VKQ vs. VTES - Volatility Comparison

Invesco Municipal Trust (VKQ) has a higher volatility of 3.09% compared to Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES) at 0.35%. This indicates that VKQ's price experiences larger fluctuations and is considered to be riskier than VTES based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VKQ	VTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.09%	0.35%	+2.74%
Volatility (6M) Calculated over the trailing 6-month period	6.12%	0.97%	+5.15%
Volatility (1Y) Calculated over the trailing 1-year period	8.37%	1.24%	+7.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.64%	1.72%	+9.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.78%	1.72%	+11.06%

Dividends

VKQ vs. VTES - Dividend Comparison

VKQ's dividend yield for the trailing twelve months is around 7.75%, more than VTES's 2.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VKQ Invesco Municipal Trust	7.75%	7.81%	6.43%	4.60%	5.63%	4.71%	4.65%	4.96%	5.98%	5.78%	6.44%	6.39%
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	2.75%	2.77%	2.99%	2.03%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VKQ and VTES in my portfolio?

VKQ and VTES have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VKQ or VTES?

VKQ has higher volatility (3.09%) compared to VTES (0.35%). In terms of maximum drawdown, VKQ dropped -51.05% vs VTES's -2.42%.

Which has better risk-adjusted returns?

VTES currently has the higher Sharpe Ratio (2.94 vs 1.73), 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.