VSDB vs. LODI

Last updated Jul 14, 2026

VSDB (Vanguard Short Duration Bond ETF Shares) and LODI (AAM SLC Low Duration Income ETF) are both Short-Term Bond funds. Both are actively managed. Over the past year, VSDB returned 4.36% vs 5.05% for LODI. At a 0.49 correlation, their price movements are largely independent. Both charge a 0.15% expense ratio.

Performance

VSDB vs. LODI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short Duration Bond ETF Shares (VSDB) and AAM SLC Low Duration Income ETF (LODI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSDB achieves a 1.02% return, which is significantly lower than LODI's 2.22% return.

VSDB

• 1D: -0.16%
• 1M: -0.07%
• 6M: 0.97%
• YTD: 1.02%
• 1Y: 4.36%
• 3Y*: —
• 5Y*: —
• 10Y*: —

LODI

• 1D: -0.02%
• 1M: 0.30%
• 6M: 2.12%
• YTD: 2.22%
• 1Y: 5.05%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VSDB vs. LODI - Yearly Performance Comparison

	2026 (YTD)	2025
VSDB Vanguard Short Duration Bond ETF Shares	1.02%	4.88%
LODI AAM SLC Low Duration Income ETF	2.22%	4.74%

Correlation

The correlation between VSDB and LODI is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.49
Correlation (All Time) Calculated using the full available price history since Apr 3, 2025	0.49

Return for Risk

VSDB vs. LODI — Risk / Return Rank

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

VSDB

VSDB Risk / Return Rank: 88
VSDB Sharpe Ratio Rank: 92
VSDB Sortino Ratio Rank: 94
VSDB Omega Ratio Rank: 92
VSDB Calmar Ratio Rank: 75
VSDB Martin Ratio Rank: 84

LODI

LODI Risk / Return Rank: 92
LODI Sharpe Ratio Rank: 87
LODI Sortino Ratio Rank: 90
LODI Omega Ratio Rank: 94
LODI Calmar Ratio Rank: 96
LODI Martin Ratio Rank: 92

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.

VSDB vs. LODI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short Duration Bond ETF Shares (VSDB) and AAM SLC Low Duration Income ETF (LODI). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VSDB	LODI	Difference
Sharpe ratio: Return per unit of total volatility	2.52	2.23	+0.29
Sortino ratio: Return per unit of downside risk	3.86	3.33	+0.54
Omega ratio: Gain probability vs. loss probability	1.50	1.56	-0.06
Calmar ratio: Return relative to maximum drawdown	3.08	6.78	-3.70
Martin ratio: Return relative to average drawdown	13.47	17.86	-4.39

VSDB vs. LODI - Sharpe Ratio Comparison

The current VSDB Sharpe Ratio is 2.52, which is comparable to the LODI Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of VSDB and LODI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VSDB vs. LODI - Drawdown Comparison

The maximum VSDB drawdown since its inception was -1.42%, which is greater than LODI's maximum drawdown of -1.01%. Use the drawdown chart below to compare losses from any high point for VSDB and LODI.

Drawdown Indicators

	VSDB	LODI	Difference
Max Drawdown Largest peak-to-trough decline	-1.42%	-1.01%	-0.41%
Max Drawdown (1Y) Largest decline over 1 year	-1.42%	-0.75%	-0.67%
Current Drawdown Current decline from peak	-0.33%	-0.08%	-0.25%
Average Drawdown Average peak-to-trough decline	-0.19%	-0.20%	+0.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.32%	0.28%	+0.04%

Volatility

VSDB vs. LODI - Volatility Comparison

Vanguard Short Duration Bond ETF Shares (VSDB) has a higher volatility of 0.52% compared to AAM SLC Low Duration Income ETF (LODI) at 0.38%. This indicates that VSDB's price experiences larger fluctuations and is considered to be riskier than LODI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSDB	LODI	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.52%	0.38%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	1.41%	1.14%	+0.27%
Volatility (1Y) Calculated over the trailing 1-year period	1.75%	2.28%	-0.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.89%	2.29%	-0.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.89%	2.29%	-0.40%

VSDB vs. LODI - Expense Ratio Comparison

Both VSDB and LODI have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VSDB vs. LODI - Dividend Comparison

VSDB's dividend yield for the trailing twelve months is around 4.18%, less than LODI's 4.97% yield.

Position	TTM	2025	2024
LODI AAM SLC Low Duration Income ETF	4.97%	5.11%	0.38%
VSDB Vanguard Short Duration Bond ETF Shares	4.18%	3.30%	0.00%

Frequently Asked Questions

Can I hold both VSDB and LODI in my portfolio?

VSDB and LODI have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VSDB or LODI?

VSDB has higher volatility (0.52%) compared to LODI (0.38%). In terms of maximum drawdown, VSDB dropped -1.42% vs LODI's -1.01%.

Which ETF is better, VSDB or LODI?

On 1-year performance, LODI leads with 5.05% vs 4.36% for VSDB. Both ETFs have the same 0.15% expense ratio. On volatility, LODI has been the lower-risk option at 0.38%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSDB or LODI?

Over the 1-year period, LODI has performed better with a 5.05% return vs 4.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSDB or LODI?

VSDB and LODI have the same expense ratio: 0.15% per year.

Which ETF pays a higher dividend yield, VSDB or LODI?

LODI has the higher dividend yield at 4.97%, compared with 4.18% for VSDB.

What is the main difference between VSDB and LODI?

They also come from different issuers: Vanguard and AAM.

Which has better risk-adjusted returns?

VSDB currently has the higher Sharpe Ratio (2.52 vs 2.23), 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.