VSDM vs. YCS

Last updated Jun 23, 2026

VSDM (Vanguard Short Duration Tax-Exempt Bond ETF) and YCS (ProShares UltraShort Yen) are both exchange-traded funds - VSDM is a Municipal Bonds fund actively managed by Vanguard, while YCS is a Leveraged Currency fund tracking the USD/JPY Exchange Rate (-200%). VSDM is actively managed, while YCS is passively managed. Over the past year, VSDM returned 4.62% vs 31.36% for YCS. At a correlation of -0.21, they often move in opposite directions. VSDM charges 0.12%/yr vs 1.00%/yr for YCS.

Performance

VSDM vs. YCS - 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 UltraShort Yen (YCS). 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 lower than YCS's 9.78% return.

VSDM

• 1D: 0.00%
• 1M: 0.75%
• YTD: 1.37%
• 6M: 1.53%
• 1Y: 4.62%
• 3Y*: —
• 5Y*: —
• 10Y*: —

YCS

• 1D: 0.40%
• 1M: 3.71%
• YTD: 9.78%
• 6M: 9.63%
• 1Y: 31.36%
• 3Y*: 18.43%
• 5Y*: 23.50%
• 10Y*: 13.63%

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

VSDM vs. YCS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	1.37%	5.39%	-0.10%
YCS ProShares UltraShort Yen	9.78%	9.04%	1.29%

Correlation

The correlation between VSDM and YCS is -0.16, 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	-0.16
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	-0.21

Return for Risk

VSDM vs. YCS — Risk / Return Rank

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

VSDM

VSDM Risk / Return Rank: 83
VSDM Sharpe Ratio Rank: 94
VSDM Sortino Ratio Rank: 95
VSDM Omega Ratio Rank: 97
VSDM Calmar Ratio Rank: 66
VSDM Martin Ratio Rank: 63

YCS

YCS Risk / Return Rank: 61
YCS Sharpe Ratio Rank: 57
YCS Sortino Ratio Rank: 49
YCS Omega Ratio Rank: 57
YCS Calmar Ratio Rank: 77
YCS Martin Ratio Rank: 67

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. YCS - 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 UltraShort Yen (YCS). 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	YCS	Difference
Sharpe ratio: Return per unit of total volatility	3.41	1.86	+1.55
Sortino ratio: Return per unit of downside risk	4.96	2.37	+2.59
Omega ratio: Gain probability vs. loss probability	1.84	1.35	+0.50
Calmar ratio: Return relative to maximum drawdown	3.17	3.79	-0.62
Martin ratio: Return relative to average drawdown	11.07	11.86	-0.79

VSDM vs. YCS - Sharpe Ratio Comparison

The current VSDM Sharpe Ratio is 3.41, which is higher than the YCS Sharpe Ratio of 1.86. The chart below compares the historical Sharpe Ratios of VSDM and YCS, 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. YCS - Drawdown Comparison

The maximum VSDM drawdown since its inception was -1.81%, smaller than the maximum YCS drawdown of -49.56%. Use the drawdown chart below to compare losses from any high point for VSDM and YCS.

Drawdown Indicators

	VSDM	YCS	Difference
Max Drawdown Largest peak-to-trough decline	-1.81%	-49.56%	+47.75%
Max Drawdown (1Y) Largest decline over 1 year	-1.46%	-8.30%	+6.84%
Max Drawdown (3Y) Largest decline over 3 years	—	-23.05%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-27.32%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-27.32%	—
Current Drawdown Current decline from peak	-0.19%	0.00%	-0.19%
Average Drawdown Average peak-to-trough decline	-0.32%	-19.88%	+19.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.42%	2.65%	-2.23%

Volatility

VSDM vs. YCS - Volatility Comparison

The current volatility for Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) is 0.32%, while ProShares UltraShort Yen (YCS) has a volatility of 2.22%. This indicates that VSDM experiences smaller price fluctuations and is considered to be less risky than YCS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSDM	YCS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.32%	2.22%	-1.90%
Volatility (6M) Calculated over the trailing 6-month period	1.08%	12.19%	-11.11%
Volatility (1Y) Calculated over the trailing 1-year period	1.36%	16.96%	-15.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.93%	21.10%	-19.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.93%	18.96%	-17.03%

VSDM vs. YCS - Expense Ratio Comparison

VSDM has a 0.12% expense ratio, which is lower than YCS's 1.00% expense ratio.

Dividends

VSDM vs. YCS - Dividend Comparison

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

Position	TTM	2025	2024
VSDM Vanguard Short Duration Tax-Exempt Bond ETF	3.10%	3.06%	0.35%
YCS ProShares UltraShort Yen	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VSDM and YCS in my portfolio?

VSDM and YCS have a correlation of -0.16, 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 YCS?

YCS has higher volatility (2.22%) compared to VSDM (0.32%). In terms of maximum drawdown, VSDM dropped -1.81% vs YCS's -49.56%.

Which ETF is better, VSDM or YCS?

On 1-year performance, YCS leads with 31.36% vs 4.62% for VSDM. On fees, VSDM is cheaper at 0.12% per year. On volatility, VSDM has been the lower-risk option at 0.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSDM or YCS?

Over the 1-year period, YCS has performed better with a 31.36% return vs 4.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSDM or YCS?

VSDM is cheaper with a 0.12% expense ratio, compared with 1.00% for YCS.

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

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

What is the main difference between VSDM and YCS?

VSDM is categorized as Municipal Bonds, while YCS is Leveraged Currency. They also come from different issuers: Vanguard and ProShares. Their fees differ too: 0.12% for VSDM and 1.00% for YCS.

Which has better risk-adjusted returns?

VSDM currently has the higher Sharpe Ratio (3.41 vs 1.86), 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.