VTES vs. BSMS
VTES (Vanguard Short-Term Tax-Exempt Bond ETF) and BSMS (Invesco BulletShares 2028 Municipal Bond ETF) are both Municipal Bonds funds - VTES tracks the S&P 0-7 Year National AMT-Free Municipal Bond Index while BSMS tracks the Invesco BulletShares Municipal Bond 2028 Index. Both are passively managed. Over the past 3 years, VTES returned 2.94%/yr vs 2.84%/yr for BSMS. Their 0.67 correlation means they have sometimes moved together and sometimes differently. VTES charges 0.07%/yr vs 0.18%/yr for BSMS.
Performance
VTES vs. BSMS - Performance Comparison
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Returns By Period
In the year-to-date period, VTES achieves a 0.37% return, which is significantly lower than BSMS's 0.89% return.
VTES
- 1D
- -0.04%
- 1M
- -0.61%
- 6M
- -0.36%
- YTD
- 0.37%
- 1Y
- 1.66%
- 3Y*
- 2.94%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 2.86%
BSMS
- 1D
- 0.07%
- 1M
- -0.38%
- 6M
- 0.30%
- YTD
- 0.89%
- 1Y
- 2.93%
- 3Y*
- 2.84%
- 5Y*
- -0.15%
- 10Y*
- —
- ALL TIME*
- 1.16%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $1.57M | $1.32M | $1.36M | |
| $19.78M | $19.18M | $17.67M |
VTES vs. BSMS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
VTES Vanguard Short-Term Tax-Exempt Bond ETF | 0.37% | 4.19% | 1.85% | 3.32% |
BSMS Invesco BulletShares 2028 Municipal Bond ETF | 0.89% | 3.61% | 1.00% | 4.66% |
Correlation
The correlation between VTES and BSMS is 0.53, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.53 |
Correlation (3Y) Balances recent behavior with more history. | 0.63 |
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023 | 0.67 |
The correlation between VTES and BSMS shifts across timeframes, from 0.53 (1 year) to 0.67 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
VTES vs. BSMS — Risk / Return Rank
VTES
BSMS
VTES vs. BSMS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Tax-Exempt Bond ETF (VTES) and Invesco BulletShares 2028 Municipal Bond ETF (BSMS). 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.
| VTES | BSMS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.65 | ||
| Sortino ratioReturn per unit of downside risk | -1.15 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.45 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 1.38 | 3.30 | -1.91 |
| Martin ratioReturn relative to average drawdown | 3.68 | 9.06 | -5.38 |
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Drawdowns
VTES vs. BSMS - Drawdown Comparison
The maximum VTES drawdown since its inception was -2.42%, smaller than the maximum BSMS drawdown of -14.95%. Use the drawdown chart below to compare losses from any high point for VTES and BSMS.
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Drawdown Indicators
| VTES | BSMS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -2.42% | -14.95% | +12.53% |
Max Drawdown (1Y)Largest decline over 1 year | -1.47% | -1.05% | -0.42% |
Max Drawdown (3Y)Largest decline over 3 years | -1.59% | -3.59% | +2.00% |
Max Drawdown (5Y)Largest decline over 5 years | — | -14.83% | — |
Current DrawdownCurrent decline from peak | -0.90% | -1.02% | +0.12% |
Average DrawdownAverage peak-to-trough decline | -0.50% | -4.87% | +4.37% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.55% | 0.38% | +0.17% |
Volatility
VTES vs. BSMS - Volatility Comparison
The current volatility for Vanguard Short-Term Tax-Exempt Bond ETF (VTES) is 0.45%, while Invesco BulletShares 2028 Municipal Bond ETF (BSMS) has a volatility of 0.63%. This indicates that VTES experiences smaller price fluctuations and is considered to be less risky than BSMS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTES | BSMS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.45% | 0.63% | -0.18% |
Volatility (6M)Calculated over the trailing 6-month period | 1.03% | 1.15% | -0.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.31% | 1.57% | -0.26% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.70% | 3.59% | -1.89% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.70% | 6.14% | -4.44% |
VTES vs. BSMS - Expense Ratio Comparison
VTES has a 0.07% expense ratio, which is lower than BSMS'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
VTES vs. BSMS - Dividend Comparison
VTES's dividend yield for the trailing twelve months is around 2.75%, which matches BSMS's 2.77% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|---|---|
BSMS Invesco BulletShares 2028 Municipal Bond ETF | 2.77% | 2.79% | 2.81% | 2.58% | 1.56% | 1.49% | 1.61% | 0.46% |
VTES Vanguard Short-Term Tax-Exempt Bond ETF | 2.52% | 2.77% | 2.99% | 2.03% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
VTES and BSMS have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BSMS has higher volatility (0.63%) compared to VTES (0.45%). In terms of maximum drawdown, VTES dropped -2.42% vs BSMS's -14.95%.
On 3-year performance, VTES leads with 2.94% vs 2.84% for BSMS. On fees, VTES is cheaper at 0.07% per year. On volatility, VTES has been the lower-risk option at 0.45%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, VTES has performed better with a 2.94% return vs 2.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTES is cheaper with a 0.07% expense ratio, compared with 0.18% for BSMS.
BSMS has the higher dividend yield at 2.77%, compared with 2.52% for VTES.
VTES tracks S&P 0-7 Year National AMT-Free Municipal Bond Index, while BSMS tracks Invesco BulletShares Municipal Bond 2028 Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.07% for VTES and 0.18% for BSMS.
BSMS currently has the higher Sharpe Ratio (2.20 vs 1.55), 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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