VSDB vs. TAXS
VSDB (Vanguard Short Duration Bond ETF Shares) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both exchange-traded funds - VSDB is a Short-Term Bond fund actively managed by Vanguard, while TAXS is a Municipal Bonds fund tracking the ICE Short Term Focused Municipal Bond Index. VSDB is actively managed, while TAXS is passively managed. Their 0.56 correlation means they have sometimes moved together and sometimes differently. VSDB charges 0.15%/yr vs 0.05%/yr for TAXS.
Performance
VSDB vs. TAXS - Performance Comparison
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Returns By Period
In the year-to-date period, VSDB achieves a 1.15% return, which is significantly higher than TAXS's 0.84% return.
VSDB
- 1D
- -0.02%
- 1M
- -0.12%
- 6M
- 0.79%
- YTD
- 1.15%
- 1Y
- 3.82%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 4.56%
TAXS
- 1D
- 0.00%
- 1M
- -0.36%
- 6M
- 0.30%
- YTD
- 0.84%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- —
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $619.80K | $883.25K | $948.95K | |
| $3.32M | $3.59M | $9.34M |
VSDB vs. TAXS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
VSDB Vanguard Short Duration Bond ETF Shares | 1.15% | 2.29% |
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF | 0.84% | 1.22% |
Correlation
The correlation between VSDB and TAXS is 0.56, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025 | 0.56 |
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Return for Risk
VSDB vs. TAXS — Risk / Return Rank
VSDB
TAXS
Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.
VSDB vs. TAXS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short Duration Bond ETF Shares (VSDB) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). 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 | TAXS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | — | — | |
| Sortino ratioReturn per unit of downside risk | — | — | |
| Omega ratioGain probability vs. loss probability | 1.47 | — | — |
| Calmar ratioReturn relative to maximum drawdown | 2.96 | — | — |
| Martin ratioReturn relative to average drawdown | 12.72 | — | — |
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Drawdowns
VSDB vs. TAXS - Drawdown Comparison
The maximum VSDB drawdown since its inception was -1.42%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for VSDB and TAXS.
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Drawdown Indicators
| VSDB | TAXS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.42% | -0.84% | -0.58% |
Max Drawdown (1Y)Largest decline over 1 year | -1.42% | — | — |
Current DrawdownCurrent decline from peak | -0.20% | -0.39% | +0.19% |
Average DrawdownAverage peak-to-trough decline | -0.19% | -0.22% | +0.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.33% | — | — |
Volatility
VSDB vs. TAXS - Volatility Comparison
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Volatility by Period
| VSDB | TAXS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.46% | — | — |
Volatility (6M)Calculated over the trailing 6-month period | 1.43% | — | — |
Volatility (1Y)Calculated over the trailing 1-year period | 1.76% | 1.03% | +0.73% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.87% | 1.03% | +0.84% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.87% | 1.03% | +0.84% |
VSDB vs. TAXS - Expense Ratio Comparison
VSDB has a 0.15% expense ratio, which is higher than TAXS's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VSDB vs. TAXS - Dividend Comparison
VSDB's dividend yield for the trailing twelve months is around 4.18%, more than TAXS's 2.04% yield.
| Position | TTM | 2025 |
|---|---|---|
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF | 2.04% | 0.74% |
VSDB Vanguard Short Duration Bond ETF Shares | 3.82% | 3.30% |
Frequently Asked Questions
VSDB and TAXS have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, TAXS is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.
TAXS is cheaper with a 0.05% expense ratio, compared with 0.15% for VSDB.
VSDB has the higher dividend yield at 3.82%, compared with 2.04% for TAXS.
VSDB is categorized as Short-Term Bond, while TAXS is Municipal Bonds. They also come from different issuers: Vanguard and Northern Trust. Their fees differ too: 0.15% for VSDB and 0.05% for TAXS.
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