VTEB vs. BSMR
VTEB (Vanguard Tax-Exempt Bond ETF) and BSMR (Invesco BulletShares 2027 Municipal Bond ETF) are both Municipal Bonds funds - VTEB tracks the S&P National AMT-Free Municipal Bond Index while BSMR tracks the Invesco BulletShares Municipal Bond 2027 Index. Both are passively managed. Over the past 5 years, VTEB returned 0.88%/yr vs 0.48%/yr for BSMR. A 0.60 correlation means they provide meaningful diversification when combined. VTEB charges 0.05%/yr vs 0.18%/yr for BSMR.
Performance
VTEB vs. BSMR - Performance Comparison
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Returns By Period
In the year-to-date period, VTEB achieves a 1.46% return, which is significantly higher than BSMR's 1.04% return.
VTEB
- 1D
- -0.06%
- 1M
- 0.66%
- YTD
- 1.46%
- 6M
- 1.89%
- 1Y
- 7.14%
- 3Y*
- 3.57%
- 5Y*
- 0.88%
- 10Y*
- 2.09%
BSMR
- 1D
- 0.05%
- 1M
- 0.41%
- YTD
- 1.04%
- 6M
- 1.31%
- 1Y
- 4.16%
- 3Y*
- 3.03%
- 5Y*
- 0.48%
- 10Y*
- —
VTEB vs. BSMR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 1.46% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 0.65% |
BSMR Invesco BulletShares 2027 Municipal Bond ETF | 1.04% | 3.10% | 1.51% | 4.47% | -7.60% | 1.09% | 4.97% | 0.16% |
Correlation
The correlation between VTEB and BSMR is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.51 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.64 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (All Time) Calculated using the full available price history since Sep 27, 2019 | 0.60 |
The correlation between VTEB and BSMR shifts across timeframes, from 0.51 (1 year) to 0.69 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VTEB vs. BSMR — Risk / Return Rank
VTEB
BSMR
VTEB vs. BSMR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Invesco BulletShares 2027 Municipal Bond ETF (BSMR). 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.
| VTEB | BSMR | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.64 | 3.33 | -0.69 |
Sortino ratioReturn per unit of downside risk | 3.92 | 5.57 | -1.65 |
Omega ratioGain probability vs. loss probability | 1.58 | 1.74 | -0.16 |
Calmar ratioReturn relative to maximum drawdown | 2.65 | 7.37 | -4.73 |
Martin ratioReturn relative to average drawdown | 9.41 | 23.41 | -14.00 |
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
| VTEB | BSMR | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.64 | 3.33 | -0.69 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.23 | 0.16 | +0.07 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.40 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.47 | 0.22 | +0.26 |
Drawdowns
VTEB vs. BSMR - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, which is greater than BSMR's maximum drawdown of -13.49%. Use the drawdown chart below to compare losses from any high point for VTEB and BSMR.
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Drawdown Indicators
| VTEB | BSMR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -13.49% | -3.51% |
Max Drawdown (1Y)Largest decline over 1 year | -2.71% | -0.57% | -2.14% |
Max Drawdown (3Y)Largest decline over 3 years | -5.53% | -3.50% | -2.03% |
Max Drawdown (5Y)Largest decline over 5 years | -12.64% | -12.02% | -0.62% |
Max Drawdown (10Y)Largest decline over 10 years | -17.00% | — | — |
Current DrawdownCurrent decline from peak | -0.52% | 0.00% | -0.52% |
Average DrawdownAverage peak-to-trough decline | -2.33% | -3.49% | +1.16% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.76% | 0.18% | +0.58% |
Volatility
VTEB vs. BSMR - Volatility Comparison
Vanguard Tax-Exempt Bond ETF (VTEB) has a higher volatility of 0.89% compared to Invesco BulletShares 2027 Municipal Bond ETF (BSMR) at 0.34%. This indicates that VTEB's price experiences larger fluctuations and is considered to be riskier than BSMR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTEB | BSMR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.89% | 0.34% | +0.55% |
Volatility (6M)Calculated over the trailing 6-month period | 2.01% | 0.92% | +1.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.72% | 1.25% | +1.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.90% | 3.03% | +0.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.26% | 5.72% | -0.46% |
VTEB vs. BSMR - Expense Ratio Comparison
VTEB has a 0.05% expense ratio, which is lower than BSMR's 0.18% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VTEB vs. BSMR - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.35%, more than BSMR's 2.72% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BSMR Invesco BulletShares 2027 Municipal Bond ETF | 2.72% | 2.77% | 2.78% | 2.72% | 1.40% | 1.00% | 1.49% | 0.45% | 0.00% | 0.00% | 0.00% | 0.00% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.35% | 3.29% | 3.14% | 2.79% | 2.09% | 1.64% | 1.99% | 2.30% | 2.25% | 1.96% | 1.66% | 0.58% |
Frequently Asked Questions
VTEB and BSMR have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEB has higher volatility (0.89%) compared to BSMR (0.34%). In terms of maximum drawdown, VTEB dropped -17.00% vs BSMR's -13.49%.
On 5-year performance, VTEB leads with 0.88% vs 0.48% for BSMR. On fees, VTEB is cheaper at 0.05% per year. On volatility, BSMR has been the lower-risk option at 0.34%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VTEB has performed better with a 0.88% return vs 0.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTEB is cheaper with a 0.05% expense ratio, compared with 0.18% for BSMR.
VTEB has the higher dividend yield at 3.35%, compared with 2.72% for BSMR.
VTEB tracks S&P National AMT-Free Municipal Bond Index, while BSMR tracks Invesco BulletShares Municipal Bond 2027 Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.05% for VTEB and 0.18% for BSMR.
BSMR currently has the higher Sharpe Ratio (3.33 vs 2.64), 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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