VSDM vs. VCRM

Last updated Apr 2, 2026

Compare and contrast key facts about Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and Vanguard Core Tax-Exempt Bond ETF (VCRM).

VSDM and VCRM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VSDM is an actively managed fund by Vanguard. It was launched on Nov 21, 2024. VCRM is a passively managed fund by Vanguard that tracks the performance of the S&P Broad AMT-Free Municipal Bond Index. It was launched on Nov 21, 2024.

Performance

VSDM vs. VCRM - Performance Comparison

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

VSDM vs. VCRM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	0.47%	5.39%	-0.15%
VCRM Vanguard Core Tax-Exempt Bond ETF	0.34%	4.91%	-0.58%

Returns By Period

In the year-to-date period, VSDM achieves a 0.47% return, which is significantly higher than VCRM's 0.34% return.

VSDM

• 1D: 0.17%
• 1M: -0.94%
• YTD: 0.47%
• 6M: 1.20%
• 1Y: 4.31%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VCRM

• 1D: 0.30%
• 1M: -1.55%
• YTD: 0.34%
• 6M: 1.86%
• 1Y: 4.77%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VSDM vs. VCRM - Expense Ratio Comparison

Both VSDM and VCRM have an expense ratio of 0.12%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

VSDM

Vanguard Short Duration Tax-Exempt Bond ETF

VCRM

Vanguard Core Tax-Exempt Bond ETF

Return for Risk

VSDM vs. VCRM — Risk / Return Rank

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

VSDM

VSDM Risk / Return Rank: 88
VSDM Sharpe Ratio Rank: 91
VSDM Sortino Ratio Rank: 90
VSDM Omega Ratio Rank: 97
VSDM Calmar Ratio Rank: 82
VSDM Martin Ratio Rank: 78

VCRM

VCRM Risk / Return Rank: 59
VCRM Sharpe Ratio Rank: 65
VCRM Sortino Ratio Rank: 56
VCRM Omega Ratio Rank: 68
VCRM Calmar Ratio Rank: 59
VCRM Martin Ratio Rank: 45

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. VCRM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) and Vanguard Core Tax-Exempt Bond ETF (VCRM). 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	VCRM	Difference
Sharpe ratio Return per unit of total volatility	2.09	1.20	+0.89
Sortino ratio Return per unit of downside risk	2.62	1.53	+1.09
Omega ratio Gain probability vs. loss probability	1.56	1.26	+0.29
Calmar ratio Return relative to maximum drawdown	2.53	1.63	+0.90
Martin ratio Return relative to average drawdown	9.01	4.63	+4.38
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. VCRM - Sharpe Ratio Comparison

The current VSDM Sharpe Ratio is 2.09, which is higher than the VCRM Sharpe Ratio of 1.20. The chart below compares the historical Sharpe Ratios of VSDM and VCRM, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	VSDM	VCRM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.09	1.20	+0.89
Sharpe Ratio (All Time) Calculated using the full available price history	2.10	0.86	+1.24

Correlation

The correlation between VSDM and VCRM is 0.68, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

VSDM vs. VCRM - Dividend Comparison

VSDM's dividend yield for the trailing twelve months is around 3.11%, less than VCRM's 3.59% yield.

	TTM	2025	2024
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	3.11%	3.06%	0.35%
VCRM Vanguard Core Tax-Exempt Bond ETF	3.59%	3.42%	0.40%

Drawdowns

VSDM vs. VCRM - Drawdown Comparison

The maximum VSDM drawdown since its inception was -1.81%, smaller than the maximum VCRM drawdown of -4.12%. Use the drawdown chart below to compare losses from any high point for VSDM and VCRM.

Drawdown Indicators

	VSDM	VCRM	Difference
Max Drawdown Largest peak-to-trough decline	-1.81%	-4.12%	+2.31%
Max Drawdown (1Y) Largest decline over 1 year	-1.81%	-3.22%	+1.41%
Current Drawdown Current decline from peak	-1.08%	-1.83%	+0.75%
Average Drawdown Average peak-to-trough decline	-0.27%	-1.15%	+0.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.51%	1.13%	-0.62%

Volatility

VSDM vs. VCRM - Volatility Comparison

The current volatility for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) is 0.73%, while Vanguard Core Tax-Exempt Bond ETF (VCRM) has a volatility of 1.49%. This indicates that VSDM experiences smaller price fluctuations and is considered to be less risky than VCRM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSDM	VCRM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.73%	1.49%	-0.76%
Volatility (6M) Calculated over the trailing 6-month period	1.01%	2.07%	-1.06%
Volatility (1Y) Calculated over the trailing 1-year period	2.09%	4.02%	-1.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.02%	4.00%	-1.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.02%	4.00%	-1.98%