VSDM vs. PDBC

Last updated Jul 11, 2026

VSDM (Vanguard Short Duration Tax-Exempt Bond ETF) and PDBC (Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF) are both exchange-traded funds - VSDM is a Municipal Bonds fund actively managed by Vanguard, while PDBC is a Commodities fund actively managed by Invesco. Both are actively managed. Over the past year, VSDM returned 4.04% vs 27.16% for PDBC. At a correlation of -0.16, they often move in opposite directions. VSDM charges 0.12%/yr vs 0.58%/yr for PDBC.

Performance

VSDM vs. PDBC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSDM achieves a 1.46% return, which is significantly lower than PDBC's 24.08% return.

VSDM

• 1D: 0.02%
• 1M: 0.22%
• 6M: 1.04%
• YTD: 1.46%
• 1Y: 4.04%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PDBC

• 1D: 0.12%
• 1M: -3.63%
• 6M: 21.24%
• YTD: 24.08%
• 1Y: 27.16%
• 3Y*: 9.96%
• 5Y*: 10.22%
• 10Y*: 7.69%

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

VSDM vs. PDBC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	1.46%	5.39%	-0.10%
PDBC Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF	24.08%	5.96%	0.43%

Correlation

The correlation between VSDM and PDBC is -0.18, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.18
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	-0.16

Return for Risk

VSDM vs. PDBC — Risk / Return Rank

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

VSDM

VSDM Risk / Return Rank: 85
VSDM Sharpe Ratio Rank: 95
VSDM Sortino Ratio Rank: 95
VSDM Omega Ratio Rank: 97
VSDM Calmar Ratio Rank: 70
VSDM Martin Ratio Rank: 67

PDBC

PDBC Risk / Return Rank: 51
PDBC Sharpe Ratio Rank: 57
PDBC Sortino Ratio Rank: 54
PDBC Omega Ratio Rank: 53
PDBC Calmar Ratio Rank: 43
PDBC Martin Ratio Rank: 47

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.

VSDM vs. PDBC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC). 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	PDBC	Difference
Sharpe ratio: Return per unit of total volatility	3.05	1.55	+1.50
Sortino ratio: Return per unit of downside risk	4.38	2.13	+2.25
Omega ratio: Gain probability vs. loss probability	1.74	1.27	+0.48
Calmar ratio: Return relative to maximum drawdown	2.82	1.75	+1.06
Martin ratio: Return relative to average drawdown	9.81	6.25	+3.57

VSDM vs. PDBC - Sharpe Ratio Comparison

The current VSDM Sharpe Ratio is 3.05, which is higher than the PDBC Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of VSDM and PDBC, 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. PDBC - Drawdown Comparison

The maximum VSDM drawdown since its inception was -1.81%, smaller than the maximum PDBC drawdown of -49.52%. Use the drawdown chart below to compare losses from any high point for VSDM and PDBC.

Drawdown Indicators

	VSDM	PDBC	Difference
Max Drawdown Largest peak-to-trough decline	-1.81%	-49.52%	+47.71%
Max Drawdown (1Y) Largest decline over 1 year	-1.46%	-16.55%	+15.09%
Max Drawdown (3Y) Largest decline over 3 years	—	-16.55%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-27.63%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-40.73%	—
Current Drawdown Current decline from peak	-0.14%	-13.06%	+12.92%
Average Drawdown Average peak-to-trough decline	-0.31%	-23.11%	+22.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.42%	4.64%	-4.22%

Volatility

VSDM vs. PDBC - Volatility Comparison

The current volatility for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) is 0.23%, while Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) has a volatility of 5.48%. This indicates that VSDM experiences smaller price fluctuations and is considered to be less risky than PDBC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSDM	PDBC	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.23%	5.48%	-5.25%
Volatility (6M) Calculated over the trailing 6-month period	1.04%	16.59%	-15.55%
Volatility (1Y) Calculated over the trailing 1-year period	1.35%	18.72%	-17.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.90%	19.19%	-17.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.90%	17.75%	-15.85%

VSDM vs. PDBC - Expense Ratio Comparison

VSDM has a 0.12% expense ratio, which is lower than PDBC's 0.58% expense ratio.

Dividends

VSDM vs. PDBC - Dividend Comparison

VSDM's dividend yield for the trailing twelve months is around 3.11%, which matches PDBC's 3.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
PDBC Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF	3.09%	3.84%	4.42%	4.21%	13.05%	50.83%	0.01%	1.40%	1.00%	3.83%	6.51%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	3.11%	3.06%	0.35%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VSDM and PDBC in my portfolio?

VSDM and PDBC have a correlation of -0.18, 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 PDBC?

PDBC has higher volatility (5.48%) compared to VSDM (0.23%). In terms of maximum drawdown, VSDM dropped -1.81% vs PDBC's -49.52%.

Which ETF is better, VSDM or PDBC?

On 1-year performance, PDBC leads with 27.16% vs 4.04% for VSDM. On fees, VSDM is cheaper at 0.12% per year. On volatility, VSDM has been the lower-risk option at 0.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSDM or PDBC?

Over the 1-year period, PDBC has performed better with a 27.16% return vs 4.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSDM or PDBC?

VSDM is cheaper with a 0.12% expense ratio, compared with 0.58% for PDBC.

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

VSDM has the higher dividend yield at 3.11%, compared with 3.09% for PDBC.

What is the main difference between VSDM and PDBC?

VSDM is categorized as Municipal Bonds, while PDBC is Commodities. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.12% for VSDM and 0.58% for PDBC.

Which has better risk-adjusted returns?

VSDM currently has the higher Sharpe Ratio (3.05 vs 1.55), 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.