VTEC vs. ZMUN

Last updated Jun 4, 2026

VTEC (Vanguard California Tax-Exempt Bond ETF) and ZMUN (F/m Ultrashort Tax-Free Municipal ETF) are both Municipal Bonds funds - VTEC tracks the S&P California AMT-Free Municipal Bond Index while ZMUN tracks the Bloomberg Municipal Bond Currently Callable Index. Both are passively managed. At a 0.16 correlation, their price movements are largely independent. VTEC charges 0.08%/yr vs 0.30%/yr for ZMUN.

Performance

VTEC vs. ZMUN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard California Tax-Exempt Bond ETF (VTEC) and F/m Ultrashort Tax-Free Municipal ETF (ZMUN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTEC achieves a 0.98% return, which is significantly lower than ZMUN's 1.57% return.

VTEC

• 1D: -0.05%
• 1M: 0.62%
• YTD: 0.98%
• 6M: 1.25%
• 1Y: 6.69%
• 3Y*: —
• 5Y*: —
• 10Y*: —

ZMUN

• 1D: -0.02%
• 1M: 0.21%
• YTD: 1.57%
• 6M: 1.86%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VTEC vs. ZMUN - Yearly Performance Comparison

	2026 (YTD)	2025
VTEC Vanguard California Tax-Exempt Bond ETF	0.98%	1.58%
ZMUN F/m Ultrashort Tax-Free Municipal ETF	1.57%	0.73%

Correlation

The correlation between VTEC and ZMUN is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Oct 1, 2025	0.16

Return for Risk

VTEC vs. ZMUN — Risk / Return Rank

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

VTEC

VTEC Risk / Return Rank: 66
VTEC Sharpe Ratio Rank: 73
VTEC Sortino Ratio Rank: 78
VTEC Omega Ratio Rank: 84
VTEC Calmar Ratio Rank: 48
VTEC Martin Ratio Rank: 47

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.

VTEC vs. ZMUN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard California Tax-Exempt Bond ETF (VTEC) and F/m Ultrashort Tax-Free Municipal ETF (ZMUN). 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.

	VTEC	ZMUN	Difference
Sharpe ratio Return per unit of total volatility	2.39	—	—
Sortino ratio Return per unit of downside risk	3.53	—	—
Omega ratio Gain probability vs. loss probability	1.52	—	—
Calmar ratio Return relative to maximum drawdown	2.35	—	—
Martin ratio Return relative to average drawdown	7.83	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	VTEC	ZMUN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.39	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.73	6.46	-5.73

Drawdowns

VTEC vs. ZMUN - Drawdown Comparison

The maximum VTEC drawdown since its inception was -4.50%, which is greater than ZMUN's maximum drawdown of -0.09%. Use the drawdown chart below to compare losses from any high point for VTEC and ZMUN.

Drawdown Indicators

	VTEC	ZMUN	Difference
Max Drawdown Largest peak-to-trough decline	-4.50%	-0.09%	-4.41%
Max Drawdown (1Y) Largest decline over 1 year	-2.85%	—	—
Current Drawdown Current decline from peak	-0.82%	-0.02%	-0.80%
Average Drawdown Average peak-to-trough decline	-1.12%	-0.01%	-1.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.86%	—	—

Volatility

Volatility by Period

	VTEC	ZMUN	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.86%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.87%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	2.82%	0.54%	+2.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.76%	0.54%	+3.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.76%	0.54%	+3.22%

VTEC vs. ZMUN - Expense Ratio Comparison

VTEC has a 0.08% expense ratio, which is lower than ZMUN's 0.30% expense ratio.

Dividends

VTEC vs. ZMUN - Dividend Comparison

VTEC's dividend yield for the trailing twelve months is around 3.16%, more than ZMUN's 2.28% yield.

Position	TTM	2025	2024
VTEC Vanguard California Tax-Exempt Bond ETF	3.16%	3.13%	2.54%
ZMUN F/m Ultrashort Tax-Free Municipal ETF	2.28%	0.70%	0.00%

Frequently Asked Questions

Can I hold both VTEC and ZMUN in my portfolio?

VTEC and ZMUN 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 ETF is better, VTEC or ZMUN?

On fees, VTEC is cheaper at 0.08% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VTEC or ZMUN?

VTEC is cheaper with a 0.08% expense ratio, compared with 0.30% for ZMUN.

Which ETF pays a higher dividend yield, VTEC or ZMUN?

VTEC has the higher dividend yield at 3.16%, compared with 2.28% for ZMUN.

What is the main difference between VTEC and ZMUN?

VTEC tracks S&P California AMT-Free Municipal Bond Index, while ZMUN tracks Bloomberg Municipal Bond Currently Callable Index. They also come from different issuers: Vanguard and F/m Investments. Their fees differ too: 0.08% for VTEC and 0.30% for ZMUN.