VSDM vs. UCO

Last updated Jun 5, 2026

VSDM (Vanguard Short Duration Tax-Exempt Bond ETF) and UCO (ProShares Ultra Bloomberg Crude Oil) are both exchange-traded funds - VSDM is a Municipal Bonds fund actively managed by Vanguard, while UCO is a Leveraged Commodities fund tracking the Dow Jones-UBS Crude Oil Sub-Index (200%). VSDM is actively managed, while UCO is passively managed. Over the past year, VSDM returned 4.92% vs 115.57% for UCO. At a correlation of -0.20, they often move in opposite directions. VSDM charges 0.12%/yr vs 0.95%/yr for UCO.

Performance

VSDM vs. UCO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and ProShares Ultra Bloomberg Crude Oil (UCO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSDM achieves a 1.29% return, which is significantly lower than UCO's 139.34% return.

VSDM

• 1D: 0.07%
• 1M: 0.49%
• YTD: 1.29%
• 6M: 1.67%
• 1Y: 4.92%
• 3Y*: —
• 5Y*: —
• 10Y*: —

UCO

• 1D: -3.93%
• 1M: -5.57%
• YTD: 139.34%
• 6M: 124.58%
• 1Y: 115.57%
• 3Y*: 24.38%
• 5Y*: 21.18%
• 10Y*: -11.98%

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

VSDM vs. UCO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	1.29%	5.39%	-0.15%
UCO ProShares Ultra Bloomberg Crude Oil	139.34%	-29.75%	3.23%

Correlation

The correlation between VSDM and UCO is -0.20, 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	-0.20
Correlation (All Time) Calculated using the full available price history since Nov 22, 2024	-0.20

Return for Risk

VSDM vs. UCO — Risk / Return Rank

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

VSDM

VSDM Risk / Return Rank: 84
VSDM Sharpe Ratio Rank: 94
VSDM Sortino Ratio Rank: 95
VSDM Omega Ratio Rank: 97
VSDM Calmar Ratio Rank: 68
VSDM Martin Ratio Rank: 66

UCO

UCO Risk / Return Rank: 54
UCO Sharpe Ratio Rank: 62
UCO Sortino Ratio Rank: 50
UCO Omega Ratio Rank: 51
UCO Calmar Ratio Rank: 68
UCO Martin Ratio Rank: 40

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. UCO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and ProShares Ultra Bloomberg Crude Oil (UCO). 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	UCO	Difference
Sharpe ratio: Return per unit of total volatility	3.64	2.03	+1.60
Sortino ratio: Return per unit of downside risk	5.29	2.39	+2.89
Omega ratio: Gain probability vs. loss probability	1.91	1.31	+0.60
Calmar ratio: Return relative to maximum drawdown	3.38	3.34	+0.04
Martin ratio: Return relative to average drawdown	11.92	6.32	+5.60
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSDM vs. UCO - Sharpe Ratio Comparison

The current VSDM Sharpe Ratio is 3.64, which is higher than the UCO Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of VSDM and UCO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VSDM	UCO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.64	2.03	+1.60
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.36	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	-0.17	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.21	-0.34	+2.55

Drawdowns

VSDM vs. UCO - Drawdown Comparison

The maximum VSDM drawdown since its inception was -1.81%, smaller than the maximum UCO drawdown of -99.95%. Use the drawdown chart below to compare losses from any high point for VSDM and UCO.

Drawdown Indicators

	VSDM	UCO	Difference
Max Drawdown Largest peak-to-trough decline	-1.81%	-99.95%	+98.14%
Max Drawdown (1Y) Largest decline over 1 year	-1.46%	-34.77%	+33.31%
Max Drawdown (3Y) Largest decline over 3 years	—	-50.38%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-67.24%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-98.75%	—
Current Drawdown Current decline from peak	-0.27%	-99.26%	+98.99%
Average Drawdown Average peak-to-trough decline	-0.32%	-85.49%	+85.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.41%	18.34%	-17.93%

Volatility

VSDM vs. UCO - Volatility Comparison

The current volatility for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) is 0.44%, while ProShares Ultra Bloomberg Crude Oil (UCO) has a volatility of 20.99%. This indicates that VSDM experiences smaller price fluctuations and is considered to be less risky than UCO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSDM	UCO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.44%	20.99%	-20.55%
Volatility (6M) Calculated over the trailing 6-month period	1.07%	46.57%	-45.50%
Volatility (1Y) Calculated over the trailing 1-year period	1.36%	57.26%	-55.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.95%	59.81%	-57.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.95%	71.35%	-69.40%

VSDM vs. UCO - Expense Ratio Comparison

VSDM has a 0.12% expense ratio, which is lower than UCO's 0.95% expense ratio.

Dividends

VSDM vs. UCO - Dividend Comparison

VSDM's dividend yield for the trailing twelve months is around 3.10%, while UCO has not paid dividends to shareholders.

Position	TTM	2025	2024
UCO ProShares Ultra Bloomberg Crude Oil	0.00%	0.00%	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 UCO in my portfolio?

VSDM and UCO have a correlation of -0.20, 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 UCO?

UCO has higher volatility (20.99%) compared to VSDM (0.44%). In terms of maximum drawdown, VSDM dropped -1.81% vs UCO's -99.95%.

Which ETF is better, VSDM or UCO?

On 1-year performance, UCO leads with 115.57% vs 4.92% for VSDM. On fees, VSDM is cheaper at 0.12% per year. On volatility, VSDM has been the lower-risk option at 0.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSDM or UCO?

Over the 1-year period, UCO has performed better with a 115.57% return vs 4.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSDM or UCO?

VSDM is cheaper with a 0.12% expense ratio, compared with 0.95% for UCO.

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

VSDM has the higher dividend yield at 3.10%, compared with 0.00% for UCO.

What is the main difference between VSDM and UCO?

VSDM is categorized as Municipal Bonds, while UCO is Leveraged Commodities. They also come from different issuers: Vanguard and ProShares. Their fees differ too: 0.12% for VSDM and 0.95% for UCO.

Which has better risk-adjusted returns?

VSDM currently has the higher Sharpe Ratio (3.64 vs 2.03), 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.