VSDM vs. BNO

Last updated Aug 1, 2026

VSDM (Vanguard Short Duration Tax-Exempt Bond ETF) and BNO (United States Brent Oil Fund LP) are both exchange-traded funds - VSDM is a Municipal Bonds fund actively managed by Vanguard, while BNO is a Oil & Gas fund tracking the Crude Oil Brent ICE Near Term Futures. VSDM is actively managed, while BNO is passively managed. Over the past year, VSDM returned 2.98% vs 62.83% for BNO. Their -0.21 correlation means they have often moved in opposite directions in the past. VSDM charges 0.12%/yr vs 1.00%/yr for BNO.

Performance

VSDM vs. BNO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and United States Brent Oil Fund LP (BNO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSDM achieves a 0.99% return, which is significantly lower than BNO's 77.90% return.

VSDM

• 1D: -0.03%
• 1M: -0.56%
• 6M: 0.25%
• YTD: 0.99%
• 1Y: 2.98%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.70%

BNO

• 1D: 1.45%
• 1M: 27.00%
• 6M: 52.90%
• YTD: 77.90%
• 1Y: 62.83%
• 3Y*: 20.31%
• 5Y*: 20.89%
• 10Y*: 15.06%
• ALL TIME*: 4.31%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
BNO United States Brent Oil Fund LP	$107.13M	$97.34M	$147.52M
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	$8.89M	$8.72M	$8.51M

VSDM vs. BNO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	0.99%	5.39%	-0.10%
BNO United States Brent Oil Fund LP	77.90%	-5.44%	2.85%

Correlation

The correlation between VSDM and BNO is -0.28, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.28
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	-0.21

Return for Risk

VSDM vs. BNO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VSDM

VSDM Risk / Return Rank: 81
VSDM Sharpe Ratio Rank: 92
VSDM Sortino Ratio Rank: 92
VSDM Omega Ratio Rank: 95
VSDM Calmar Ratio Rank: 65
VSDM Martin Ratio Rank: 63

BNO

BNO Risk / Return Rank: 52
BNO Sharpe Ratio Rank: 55
BNO Sortino Ratio Rank: 55
BNO Omega Ratio Rank: 55
BNO Calmar Ratio Rank: 47
BNO Martin Ratio Rank: 45

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VSDM vs. BNO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and United States Brent Oil Fund LP (BNO). 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.

	VSDM	BNO	Difference
Sharpe ratio: Return per unit of total volatility	2.38	1.32	+1.06
Sortino ratio: Return per unit of downside risk	3.33	1.90	+1.43
Omega ratio: Gain probability vs. loss probability	1.55	1.24	+0.30
Calmar ratio: Return relative to maximum drawdown	2.27	1.70	+0.57
Martin ratio: Return relative to average drawdown	7.63	5.15	+2.48

VSDM vs. BNO - Sharpe Ratio Comparison

The current VSDM Sharpe Ratio is 2.38, which is higher than the BNO Sharpe Ratio of 1.32. The chart below compares the historical Sharpe Ratios of VSDM and BNO, 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

VSDM vs. BNO - Drawdown Comparison

The maximum VSDM drawdown since its inception was -1.81%, smaller than the maximum BNO drawdown of -87.06%. Use the drawdown chart below to compare losses from any high point for VSDM and BNO.

Drawdown Indicators

	VSDM	BNO	Difference
Max Drawdown Largest peak-to-trough decline	-1.81%	-87.06%	+85.25%
Max Drawdown (1Y) Largest decline over 1 year	-1.46%	-34.46%	+33.00%
Max Drawdown (3Y) Largest decline over 3 years	—	-34.46%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-34.46%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-75.18%	—
Current Drawdown Current decline from peak	-0.60%	-16.21%	+15.61%
Average Drawdown Average peak-to-trough decline	-0.31%	-39.99%	+39.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.43%	11.86%	-11.43%

Volatility

VSDM vs. BNO - Volatility Comparison

The current volatility for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) is 0.41%, while United States Brent Oil Fund LP (BNO) has a volatility of 17.47%. This indicates that VSDM experiences smaller price fluctuations and is considered to be less risky than BNO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSDM	BNO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.41%	17.47%	-17.06%
Volatility (6M) Calculated over the trailing 6-month period	1.11%	40.96%	-39.85%
Volatility (1Y) Calculated over the trailing 1-year period	1.40%	44.54%	-43.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.89%	36.41%	-34.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.89%	36.98%	-35.09%

VSDM vs. BNO - Expense Ratio Comparison

VSDM has a 0.12% expense ratio, which is lower than BNO's 1.00% expense ratio.

Dividends

VSDM vs. BNO - Dividend Comparison

VSDM's dividend yield for the trailing twelve months is around 3.12%, while BNO has not paid dividends to shareholders.

Position	TTM	2025	2024
BNO United States Brent Oil Fund LP	0.00%	0.00%	0.00%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	2.87%	3.06%	0.35%

Frequently Asked Questions

Can I hold both VSDM and BNO in my portfolio?

VSDM and BNO have a correlation of -0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VSDM or BNO?

BNO has higher volatility (17.47%) compared to VSDM (0.41%). In terms of maximum drawdown, VSDM dropped -1.81% vs BNO's -87.06%.

Which ETF is better, VSDM or BNO?

On 1-year performance, BNO leads with 62.83% vs 2.98% for VSDM. On fees, VSDM is cheaper at 0.12% per year. On volatility, VSDM has been the lower-risk option at 0.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSDM or BNO?

Over the 1-year period, BNO has performed better with a 62.83% return vs 2.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSDM or BNO?

VSDM is cheaper with a 0.12% expense ratio, compared with 1.00% for BNO.

Which ETF pays a higher dividend yield, VSDM or BNO?

VSDM has the higher dividend yield at 2.87%, compared with 0.00% for BNO.

What is the main difference between VSDM and BNO?

VSDM is categorized as Municipal Bonds, while BNO is Oil & Gas. They also come from different issuers: Vanguard and USCF. Their fees differ too: 0.12% for VSDM and 1.00% for BNO.

Which has better risk-adjusted returns?

VSDM currently has the higher Sharpe Ratio (2.38 vs 1.32), 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.