VSDM vs. TAXI
VSDM (Vanguard Short Duration Tax-Exempt Bond ETF) and TAXI (Northern Trust Intermediate Tax-Exempt Bond ETF) are both Municipal Bonds funds. VSDM is actively managed, while TAXI is passively managed. A 0.71 correlation means they provide meaningful diversification when combined. VSDM charges 0.12%/yr vs 0.05%/yr for TAXI.
Performance
VSDM vs. TAXI - Performance Comparison
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Returns By Period
In the year-to-date period, VSDM achieves a 1.22% return, which is significantly higher than TAXI's 0.94% return.
VSDM
- 1D
- 0.00%
- 1M
- 0.47%
- YTD
- 1.22%
- 6M
- 1.63%
- 1Y
- 4.98%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
TAXI
- 1D
- -0.03%
- 1M
- 0.46%
- YTD
- 0.94%
- 6M
- 1.55%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VSDM vs. TAXI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
VSDM Vanguard Short Duration Tax-Exempt Bond ETF | 1.22% | 1.71% |
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF | 0.94% | 3.35% |
Correlation
The correlation between VSDM and TAXI is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (All Time) Calculated using the full available price history since Aug 20, 2025 | 0.71 |
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Return for Risk
VSDM vs. TAXI — Risk / Return Rank
VSDM
TAXI
VSDM vs. TAXI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI). 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.
| VSDM | TAXI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | — | — | |
| Sortino ratioReturn per unit of downside risk | — | — | |
| Omega ratioGain probability vs. loss probability | 1.92 | — | — |
| Calmar ratioReturn relative to maximum drawdown | 3.42 | — | — |
| Martin ratioReturn relative to average drawdown | 12.07 | — | — |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VSDM | TAXI | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.67 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 2.19 | 2.92 | -0.73 |
Drawdowns
VSDM vs. TAXI - Drawdown Comparison
The maximum VSDM drawdown since its inception was -1.81%, smaller than the maximum TAXI drawdown of -2.23%. Use the drawdown chart below to compare losses from any high point for VSDM and TAXI.
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Drawdown Indicators
| VSDM | TAXI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.81% | -2.23% | +0.42% |
Max Drawdown (1Y)Largest decline over 1 year | -1.46% | — | — |
Current DrawdownCurrent decline from peak | -0.33% | -0.79% | +0.46% |
Average DrawdownAverage peak-to-trough decline | -0.32% | -0.46% | +0.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.41% | — | — |
Volatility
VSDM vs. TAXI - Volatility Comparison
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Volatility by Period
| VSDM | TAXI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.44% | — | — |
Volatility (6M)Calculated over the trailing 6-month period | 1.07% | — | — |
Volatility (1Y)Calculated over the trailing 1-year period | 1.36% | 1.90% | -0.54% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.95% | 1.90% | +0.05% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.95% | 1.90% | +0.05% |
VSDM vs. TAXI - Expense Ratio Comparison
VSDM has a 0.12% expense ratio, which is higher than TAXI'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
VSDM vs. TAXI - Dividend Comparison
VSDM's dividend yield for the trailing twelve months is around 3.11%, more than TAXI's 2.00% yield.
| Position | TTM | 2025 | 2024 |
|---|---|---|---|
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF | 2.00% | 0.85% | 0.00% |
VSDM Vanguard Short Duration Tax-Exempt Bond ETF | 3.11% | 3.06% | 0.35% |
Frequently Asked Questions
VSDM and TAXI have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, TAXI is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.
TAXI is cheaper with a 0.05% expense ratio, compared with 0.12% for VSDM.
VSDM has the higher dividend yield at 3.11%, compared with 2.00% for TAXI.
They also come from different issuers: Vanguard and Northern Trust. Their fees differ too: 0.12% for VSDM and 0.05% for TAXI.
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