VTEI vs. BSMQ
VTEI (Vanguard Intermediate-Term Tax-Exempt Bond ETF) and BSMQ (Invesco BulletShares 2026 Municipal Bond ETF) are both Municipal Bonds funds - VTEI tracks the S&P Intermediate Term National AMT-Free Municipal Bond Index while BSMQ tracks the Invesco BulletShares Municipal Bond 2026 Index. Both are passively managed. Over the past year, VTEI returned 6.21% vs 2.98% for BSMQ. At a 0.41 correlation, their price movements are largely independent. VTEI charges 0.08%/yr vs 0.18%/yr for BSMQ.
Performance
VTEI vs. BSMQ - Performance Comparison
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Returns By Period
In the year-to-date period, VTEI achieves a 1.21% return, which is significantly higher than BSMQ's 0.81% return.
VTEI
- 1D
- 0.09%
- 1M
- 0.59%
- YTD
- 1.21%
- 6M
- 1.65%
- 1Y
- 6.21%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
BSMQ
- 1D
- 0.07%
- 1M
- 0.17%
- YTD
- 0.81%
- 6M
- 1.18%
- 1Y
- 2.98%
- 3Y*
- 2.90%
- 5Y*
- 0.31%
- 10Y*
- —
VTEI vs. BSMQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF | 1.21% | 4.59% | 1.55% |
BSMQ Invesco BulletShares 2026 Municipal Bond ETF | 0.81% | 3.12% | 2.34% |
Correlation
The correlation between VTEI and BSMQ is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.20 |
Correlation (All Time) Calculated using the full available price history since Jan 31, 2024 | 0.41 |
Over the past year, the correlation between VTEI and BSMQ has dropped to 0.20 - well below their long-term average of 0.41, suggesting their price drivers have been diverging.
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Return for Risk
VTEI vs. BSMQ — Risk / Return Rank
VTEI
BSMQ
VTEI vs. BSMQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) and Invesco BulletShares 2026 Municipal Bond ETF (BSMQ). 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.
| VTEI | BSMQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.37 | ||
| Sortino ratioReturn per unit of downside risk | +0.42 | ||
| Omega ratioGain probability vs. loss probability | 1.62 | 1.47 | +0.15 |
| Calmar ratioReturn relative to maximum drawdown | 2.39 | 9.12 | -6.73 |
| Martin ratioReturn relative to average drawdown | 7.83 | 23.88 | -16.05 |
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
| VTEI | BSMQ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.63 | 2.26 | +0.37 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.12 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.04 | 0.25 | +0.79 |
Drawdowns
VTEI vs. BSMQ - Drawdown Comparison
The maximum VTEI drawdown since its inception was -3.64%, smaller than the maximum BSMQ drawdown of -13.18%. Use the drawdown chart below to compare losses from any high point for VTEI and BSMQ.
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Drawdown Indicators
| VTEI | BSMQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -3.64% | -13.18% | +9.54% |
Max Drawdown (1Y)Largest decline over 1 year | -2.61% | -0.33% | -2.28% |
Max Drawdown (3Y)Largest decline over 3 years | — | -2.53% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -11.50% | — |
Current DrawdownCurrent decline from peak | -0.76% | -0.05% | -0.71% |
Average DrawdownAverage peak-to-trough decline | -0.78% | -3.47% | +2.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.79% | 0.12% | +0.67% |
Volatility
VTEI vs. BSMQ - Volatility Comparison
Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) has a higher volatility of 0.78% compared to Invesco BulletShares 2026 Municipal Bond ETF (BSMQ) at 0.40%. This indicates that VTEI's price experiences larger fluctuations and is considered to be riskier than BSMQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTEI | BSMQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.78% | 0.40% | +0.38% |
Volatility (6M)Calculated over the trailing 6-month period | 1.71% | 0.94% | +0.77% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.37% | 1.33% | +1.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.04% | 2.68% | +0.36% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.04% | 4.79% | -1.75% |
VTEI vs. BSMQ - Expense Ratio Comparison
VTEI has a 0.08% expense ratio, which is lower than BSMQ'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
VTEI vs. BSMQ - Dividend Comparison
VTEI's dividend yield for the trailing twelve months is around 3.05%, more than BSMQ's 2.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|---|---|
BSMQ Invesco BulletShares 2026 Municipal Bond ETF | 2.76% | 2.74% | 2.75% | 2.47% | 1.60% | 1.14% | 1.57% | 0.44% |
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF | 3.05% | 3.00% | 2.65% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
VTEI and BSMQ have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEI has higher volatility (0.78%) compared to BSMQ (0.40%). In terms of maximum drawdown, VTEI dropped -3.64% vs BSMQ's -13.18%.
On 1-year performance, VTEI leads with 6.21% vs 2.98% for BSMQ. On fees, VTEI is cheaper at 0.08% per year. On volatility, BSMQ has been the lower-risk option at 0.40%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, VTEI has performed better with a 6.21% return vs 2.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTEI is cheaper with a 0.08% expense ratio, compared with 0.18% for BSMQ.
VTEI has the higher dividend yield at 3.05%, compared with 2.76% for BSMQ.
VTEI tracks S&P Intermediate Term National AMT-Free Municipal Bond Index, while BSMQ tracks Invesco BulletShares Municipal Bond 2026 Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.08% for VTEI and 0.18% for BSMQ.
VTEI currently has the higher Sharpe Ratio (2.63 vs 2.26), 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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