VSDM vs. TAXS

Last updated Jun 24, 2026

VSDM (Vanguard Short Duration Tax-Exempt Bond ETF) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds. VSDM is actively managed, while TAXS is passively managed. A 0.63 correlation means they provide meaningful diversification when combined. VSDM charges 0.12%/yr vs 0.05%/yr for TAXS.

Performance

VSDM vs. TAXS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSDM achieves a 1.37% return, which is significantly higher than TAXS's 1.03% return.

VSDM

• 1D: 0.00%
• 1M: 0.75%
• YTD: 1.37%
• 6M: 1.53%
• 1Y: 4.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAXS

• 1D: -0.02%
• 1M: 0.62%
• YTD: 1.03%
• 6M: 1.18%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VSDM vs. TAXS - Yearly Performance Comparison

	2026 (YTD)	2025
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	1.37%	1.70%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.03%	1.22%

Correlation

The correlation between VSDM and TAXS is 0.63, 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 19, 2025	0.63

Return for Risk

VSDM vs. TAXS — Risk / Return Rank

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

VSDM

VSDM Risk / Return Rank: 82
VSDM Sharpe Ratio Rank: 94
VSDM Sortino Ratio Rank: 95
VSDM Omega Ratio Rank: 96
VSDM Calmar Ratio Rank: 65
VSDM Martin Ratio Rank: 62

TAXS

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

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. TAXS - 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 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.

	VSDM	TAXS	Difference
Sharpe ratio: Return per unit of total volatility	3.32	—	—
Sortino ratio: Return per unit of downside risk	4.80	—	—
Omega ratio: Gain probability vs. loss probability	1.82	—	—
Calmar ratio: Return relative to maximum drawdown	3.07	—	—
Martin ratio: Return relative to average drawdown	10.72	—	—

Drawdowns

VSDM vs. TAXS - Drawdown Comparison

The maximum VSDM drawdown since its inception was -1.81%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for VSDM and TAXS.

Drawdown Indicators

	VSDM	TAXS	Difference
Max Drawdown Largest peak-to-trough decline	-1.81%	-0.84%	-0.97%
Max Drawdown (1Y) Largest decline over 1 year	-1.46%	—	—
Current Drawdown Current decline from peak	-0.19%	-0.04%	-0.15%
Average Drawdown Average peak-to-trough decline	-0.32%	-0.22%	-0.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.42%	—	—

Volatility

Volatility by Period

	VSDM	TAXS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.32%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.07%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.36%	0.99%	+0.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.92%	0.99%	+0.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.92%	0.99%	+0.93%

VSDM vs. TAXS - Expense Ratio Comparison

VSDM has a 0.12% 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

VSDM vs. TAXS - Dividend Comparison

VSDM's dividend yield for the trailing twelve months is around 3.10%, more than TAXS's 1.82% yield.

Position	TTM	2025	2024
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.82%	0.74%	0.00%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	3.10%	3.06%	0.35%

Frequently Asked Questions

Can I hold both VSDM and TAXS in my portfolio?

VSDM and TAXS have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VSDM or TAXS?

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.

Which ETF is cheaper, VSDM or TAXS?

TAXS is cheaper with a 0.05% expense ratio, compared with 0.12% for VSDM.

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

VSDM has the higher dividend yield at 3.10%, compared with 1.82% for TAXS.

What is the main difference between VSDM and TAXS?

They also come from different issuers: Vanguard and Northern Trust. Their fees differ too: 0.12% for VSDM and 0.05% for TAXS.