VSDM vs. VYM
VSDM (Vanguard Short Duration Tax-Exempt Bond ETF) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - VSDM is a Municipal Bonds fund actively managed by Vanguard, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. VSDM is actively managed, while VYM is passively managed. Over the past year, VSDM returned 4.98% vs 26.16% for VYM. At a 0.21 correlation, their price movements are largely independent. VSDM charges 0.12%/yr vs 0.04%/yr for VYM.
Performance
VSDM vs. VYM - Performance Comparison
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Returns By Period
In the year-to-date period, VSDM achieves a 1.22% return, which is significantly lower than VYM's 12.47% return.
VSDM
- 1D
- 0.00%
- 1M
- 0.47%
- YTD
- 1.22%
- 6M
- 1.63%
- 1Y
- 4.98%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VYM
- 1D
- -0.43%
- 1M
- 3.38%
- YTD
- 12.47%
- 6M
- 12.01%
- 1Y
- 26.16%
- 3Y*
- 18.88%
- 5Y*
- 11.48%
- 10Y*
- 11.90%
VSDM vs. VYM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
VSDM Vanguard Short Duration Tax-Exempt Bond ETF | 1.22% | 5.39% | -0.15% |
VYM Vanguard High Dividend Yield ETF | 12.47% | 15.42% | -2.97% |
Correlation
The correlation between VSDM and VYM is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.23 |
Correlation (All Time) Calculated using the full available price history since Nov 22, 2024 | 0.21 |
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Return for Risk
VSDM vs. VYM — Risk / Return Rank
VSDM
VYM
VSDM vs. VYM - 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 High Dividend Yield ETF (VYM). 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 | VYM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.11 | ||
| Sortino ratioReturn per unit of downside risk | +1.70 | ||
| Omega ratioGain probability vs. loss probability | 1.92 | 1.46 | +0.46 |
| Calmar ratioReturn relative to maximum drawdown | 3.42 | 3.93 | -0.50 |
| Martin ratioReturn relative to average drawdown | 12.07 | 14.76 | -2.69 |
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 | VYM | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.67 | 2.56 | +1.11 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.83 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.73 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 2.19 | 0.51 | +1.68 |
Drawdowns
VSDM vs. VYM - Drawdown Comparison
The maximum VSDM drawdown since its inception was -1.81%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for VSDM and VYM.
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Drawdown Indicators
| VSDM | VYM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.81% | -56.98% | +55.17% |
Max Drawdown (1Y)Largest decline over 1 year | -1.46% | -6.69% | +5.23% |
Max Drawdown (3Y)Largest decline over 3 years | — | -14.46% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -15.84% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -35.21% | — |
Current DrawdownCurrent decline from peak | -0.33% | -0.43% | +0.10% |
Average DrawdownAverage peak-to-trough decline | -0.32% | -7.19% | +6.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.41% | 1.78% | -1.37% |
Volatility
VSDM vs. VYM - Volatility Comparison
The current volatility for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) is 0.44%, while Vanguard High Dividend Yield ETF (VYM) has a volatility of 2.77%. This indicates that VSDM experiences smaller price fluctuations and is considered to be less risky than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VSDM | VYM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.44% | 2.77% | -2.33% |
Volatility (6M)Calculated over the trailing 6-month period | 1.07% | 7.67% | -6.60% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.36% | 10.28% | -8.92% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.95% | 13.96% | -12.01% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.95% | 16.34% | -14.39% |
VSDM vs. VYM - Expense Ratio Comparison
VSDM has a 0.12% expense ratio, which is higher than VYM's 0.04% 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. VYM - Dividend Comparison
VSDM's dividend yield for the trailing twelve months is around 3.11%, more than VYM's 2.19% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VSDM Vanguard Short Duration Tax-Exempt Bond ETF | 3.11% | 3.06% | 0.35% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VYM Vanguard High Dividend Yield ETF | 2.19% | 2.44% | 2.74% | 3.12% | 3.01% | 2.76% | 3.18% | 3.03% | 3.40% | 2.80% | 2.91% | 3.22% |
Frequently Asked Questions
VSDM and VYM have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VYM has higher volatility (2.77%) compared to VSDM (0.44%). In terms of maximum drawdown, VSDM dropped -1.81% vs VYM's -56.98%.
On 1-year performance, VYM leads with 26.16% vs 4.98% for VSDM. On fees, VYM is cheaper at 0.04% 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.
Over the 1-year period, VYM has performed better with a 26.16% return vs 4.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VYM is cheaper with a 0.04% expense ratio, compared with 0.12% for VSDM.
VSDM has the higher dividend yield at 3.11%, compared with 2.19% for VYM.
VSDM is categorized as Municipal Bonds, while VYM is Dividend. Their fees differ too: 0.12% for VSDM and 0.04% for VYM.
VSDM currently has the higher Sharpe Ratio (3.67 vs 2.56), 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.
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