VSDM vs. VCRM

Last updated Aug 1, 2026

VSDM (Vanguard Short Duration Tax-Exempt Bond ETF) and VCRM (Vanguard Core Tax-Exempt Bond ETF) are both Municipal Bonds funds from Vanguard. VSDM is actively managed, while VCRM is passively managed. Over the past year, VSDM returned 2.98% vs 5.74% for VCRM. Their 0.71 correlation means they have sometimes moved together and sometimes differently. Both charge a 0.12% expense ratio.

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.

Returns By Period

In the year-to-date period, VSDM achieves a 0.99% return, which is significantly lower than VCRM's 1.09% return.

VSDM

• 1D: -0.03%
• 1M: -0.56%
• 6M: 0.25%
• YTD: 0.99%
• 1Y: 2.98%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.70%

VCRM

• 1D: -0.02%
• 1M: -1.65%
• 6M: 0.34%
• YTD: 1.09%
• 1Y: 5.74%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.26%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VCRM Vanguard Core Tax-Exempt Bond ETF	$17.32M	$17.04M	$19.24M
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	$8.89M	$8.72M	$8.51M

VSDM vs. VCRM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	0.99%	5.39%	-0.10%
VCRM Vanguard Core Tax-Exempt Bond ETF	1.09%	4.91%	-0.45%

Correlation

The correlation between VSDM and VCRM is 0.70, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.70
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	0.71

The correlation between VSDM and VCRM has been stable across timeframes, ranging from 0.70 to 0.71 - a consistent structural relationship.

Return for Risk

VSDM vs. VCRM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VSDM

VSDM Risk / Return Rank: 81
VSDM Sharpe Ratio Rank: 92
VSDM Sortino Ratio Rank: 92
VSDM Omega Ratio Rank: 95
VSDM Calmar Ratio Rank: 65
VSDM Martin Ratio Rank: 63

VCRM

VCRM Risk / Return Rank: 82
VCRM Sharpe Ratio Rank: 88
VCRM Sortino Ratio Rank: 89
VCRM Omega Ratio Rank: 93
VCRM Calmar Ratio Rank: 70
VCRM Martin Ratio Rank: 70

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

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.

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	VCRM	Difference
Sharpe ratio: Return per unit of total volatility	2.38	2.15	+0.22
Sortino ratio: Return per unit of downside risk	3.33	3.09	+0.24
Omega ratio: Gain probability vs. loss probability	1.55	1.47	+0.08
Calmar ratio: Return relative to maximum drawdown	2.27	2.43	-0.17
Martin ratio: Return relative to average drawdown	7.63	8.53	-0.90

VSDM vs. VCRM - Sharpe Ratio Comparison

The current VSDM Sharpe Ratio is 2.38, which is comparable to the VCRM Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of VSDM and VCRM, 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. 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	-1.46%	-2.72%	+1.26%
Current Drawdown Current decline from peak	-0.60%	-1.65%	+1.05%
Average Drawdown Average peak-to-trough decline	-0.31%	-1.07%	+0.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.43%	0.78%	-0.35%

Volatility

VSDM vs. VCRM - Volatility Comparison

The current volatility for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) is 0.41%, while Vanguard Core Tax-Exempt Bond ETF (VCRM) has a volatility of 1.04%. 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	0.41%	1.04%	-0.63%
Volatility (6M) Calculated over the trailing 6-month period	1.11%	2.39%	-1.28%
Volatility (1Y) Calculated over the trailing 1-year period	1.40%	3.08%	-1.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.89%	3.81%	-1.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.89%	3.81%	-1.92%

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%.

Dividends

VSDM vs. VCRM - Dividend Comparison

VSDM's dividend yield for the trailing twelve months is around 3.12%, less than VCRM's 3.69% yield.

Position	TTM	2025	2024
VCRM Vanguard Core Tax-Exempt Bond ETF	3.41%	3.42%	0.40%
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	2.87%	3.06%	0.35%

Frequently Asked Questions

Can I hold both VSDM and VCRM in my portfolio?

VSDM and VCRM have a correlation of 0.70, 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 VCRM?

VCRM has higher volatility (1.04%) compared to VSDM (0.41%). In terms of maximum drawdown, VSDM dropped -1.81% vs VCRM's -4.12%.

Which ETF is better, VSDM or VCRM?

On 1-year performance, VCRM leads with 5.74% vs 2.98% for VSDM. Both ETFs have the same 0.12% expense ratio. On volatility, VSDM has been the lower-risk option at 0.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSDM or VCRM?

Over the 1-year period, VCRM has performed better with a 5.74% return vs 2.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSDM or VCRM?

VSDM and VCRM have the same expense ratio: 0.12% per year.

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

VCRM has the higher dividend yield at 3.41%, compared with 2.87% for VSDM.

Which has better risk-adjusted returns?

VSDM currently has the higher Sharpe Ratio (2.38 vs 2.15), 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.