VSDB vs. ZTWO

Last updated Apr 2, 2026

Compare and contrast key facts about Vanguard Short Duration Bond ETF Shares (VSDB) and F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO).

VSDB and ZTWO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VSDB is an actively managed fund by Vanguard. It was launched on Apr 1, 2025. ZTWO is a passively managed fund by F/m that tracks the performance of the ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross. It was launched on Jan 10, 2024.

Performance

VSDB vs. ZTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short Duration Bond ETF Shares (VSDB) and F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO). The values are adjusted to include any dividend payments, if applicable.

VSDB vs. ZTWO - Yearly Performance Comparison

	2026 (YTD)	2025
VSDB Vanguard Short Duration Bond ETF Shares	0.31%	4.85%
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	0.29%	3.67%

Returns By Period

In the year-to-date period, VSDB achieves a 0.31% return, which is significantly higher than ZTWO's 0.29% return.

VSDB

• 1D: 0.10%
• 1M: -0.57%
• YTD: 0.31%
• 6M: 1.55%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

ZTWO

• 1D: 0.03%
• 1M: -0.39%
• YTD: 0.29%
• 6M: 1.28%
• 1Y: 4.18%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VSDB vs. ZTWO - Expense Ratio Comparison

Both VSDB and ZTWO 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%.

VSDB

Vanguard Short Duration Bond ETF Shares

ZTWO

F/M 2-Year Investment Grade Corporate Bond ETF

Return for Risk

VSDB vs. ZTWO — Risk / Return Rank

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

ZTWO

ZTWO Risk / Return Rank: 97
ZTWO Sharpe Ratio Rank: 96
ZTWO Sortino Ratio Rank: 98
ZTWO Omega Ratio Rank: 97
ZTWO Calmar Ratio Rank: 96
ZTWO Martin Ratio Rank: 97

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. ZTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short Duration Bond ETF Shares (VSDB) and F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	VSDB	ZTWO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.74	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.75	3.24	-0.49

Correlation

The correlation between VSDB and ZTWO is 0.76, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

VSDB vs. ZTWO - Dividend Comparison

VSDB's dividend yield for the trailing twelve months is around 4.20%, which matches ZTWO's 4.19% yield.

	TTM	2025	2024
VSDB Vanguard Short Duration Bond ETF Shares	4.20%	3.30%	0.00%
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	4.19%	4.31%	0.39%

Drawdowns

VSDB vs. ZTWO - Drawdown Comparison

The maximum VSDB drawdown since its inception was -1.42%, which is greater than ZTWO's maximum drawdown of -0.93%. Use the drawdown chart below to compare losses from any high point for VSDB and ZTWO.

Drawdown Indicators

	VSDB	ZTWO	Difference
Max Drawdown Largest peak-to-trough decline	-1.42%	-0.93%	-0.49%
Max Drawdown (1Y) Largest decline over 1 year	—	-0.93%	—
Current Drawdown Current decline from peak	-0.79%	-0.49%	-0.30%
Average Drawdown Average peak-to-trough decline	-0.17%	-0.10%	-0.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.21%	—

Volatility

Volatility by Period

	VSDB	ZTWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.61%	—
Volatility (6M) Calculated over the trailing 6-month period	—	0.89%	—
Volatility (1Y) Calculated over the trailing 1-year period	1.91%	1.53%	+0.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.91%	1.50%	+0.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.91%	1.50%	+0.41%