VTEI vs. ZMUN

Last updated Jun 5, 2026

VTEI (Vanguard Intermediate-Term Tax-Exempt Bond ETF) and ZMUN (F/m Ultrashort Tax-Free Municipal ETF) are both Municipal Bonds funds - VTEI tracks the S&P Intermediate Term National AMT-Free Municipal Bond Index while ZMUN tracks the Bloomberg Municipal Bond Currently Callable Index. Both are passively managed. At a 0.19 correlation, their price movements are largely independent. VTEI charges 0.08%/yr vs 0.30%/yr for ZMUN.

Performance

VTEI vs. ZMUN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) 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, VTEI achieves a 1.21% return, which is significantly lower than ZMUN's 1.61% return.

VTEI

• 1D: 0.09%
• 1M: 0.59%
• YTD: 1.21%
• 6M: 1.65%
• 1Y: 6.21%
• 3Y*: —
• 5Y*: —
• 10Y*: —

ZMUN

• 1D: 0.04%
• 1M: 0.31%
• YTD: 1.61%
• 6M: 1.88%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VTEI vs. ZMUN - Yearly Performance Comparison

	2026 (YTD)	2025
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF	1.21%	1.55%
ZMUN F/m Ultrashort Tax-Free Municipal ETF	1.61%	0.73%

Correlation

The correlation between VTEI and ZMUN is 0.19, 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	0.19

Return for Risk

VTEI vs. ZMUN — Risk / Return Rank

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

VTEI

VTEI Risk / Return Rank: 72
VTEI Sharpe Ratio Rank: 82
VTEI Sortino Ratio Rank: 88
VTEI Omega Ratio Rank: 92
VTEI Calmar Ratio Rank: 49
VTEI Martin Ratio Rank: 48

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.

VTEI vs. ZMUN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) 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.

	VTEI	ZMUN	Difference
Sharpe ratio: Return per unit of total volatility	2.63	—	—
Sortino ratio: Return per unit of downside risk	3.99	—	—
Omega ratio: Gain probability vs. loss probability	1.62	—	—
Calmar ratio: Return relative to maximum drawdown	2.39	—	—
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

	VTEI	ZMUN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.63	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.04	6.54	-5.50

Drawdowns

VTEI vs. ZMUN - Drawdown Comparison

The maximum VTEI drawdown since its inception was -3.64%, which is greater than ZMUN's maximum drawdown of -0.09%. Use the drawdown chart below to compare losses from any high point for VTEI and ZMUN.

Drawdown Indicators

	VTEI	ZMUN	Difference
Max Drawdown Largest peak-to-trough decline	-3.64%	-0.09%	-3.55%
Max Drawdown (1Y) Largest decline over 1 year	-2.61%	—	—
Current Drawdown Current decline from peak	-0.76%	0.00%	-0.76%
Average Drawdown Average peak-to-trough decline	-0.78%	-0.01%	-0.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.79%	—	—

Volatility

Volatility by Period

	VTEI	ZMUN	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.78%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.71%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	2.37%	0.54%	+1.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.04%	0.54%	+2.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.04%	0.54%	+2.50%

VTEI vs. ZMUN - Expense Ratio Comparison

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

Dividends

VTEI vs. ZMUN - Dividend Comparison

VTEI's dividend yield for the trailing twelve months is around 3.05%, more than ZMUN's 2.28% yield.

Position	TTM	2025	2024
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF	3.05%	3.00%	2.65%
ZMUN F/m Ultrashort Tax-Free Municipal ETF	2.28%	0.70%	0.00%

Frequently Asked Questions

Can I hold both VTEI and ZMUN in my portfolio?

VTEI and ZMUN have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VTEI or ZMUN?

On fees, VTEI 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, VTEI or ZMUN?

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

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

VTEI has the higher dividend yield at 3.05%, compared with 2.28% for ZMUN.

What is the main difference between VTEI and ZMUN?

VTEI tracks S&P Intermediate Term National 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 VTEI and 0.30% for ZMUN.