VTES vs. DBO

Last updated Aug 2, 2026

VTES (Vanguard Short-Term Tax-Exempt Bond ETF) and DBO (Invesco DB Oil Fund) are both exchange-traded funds - VTES is a Municipal Bonds fund tracking the S&P 0-7 Year National AMT-Free Municipal Bond Index, while DBO is a Oil & Gas fund tracking the DBIQ Optimum Yield Crude Oil Index Excess Return. Both are passively managed. Over the past 3 years, VTES returned 2.94%/yr vs 14.86%/yr for DBO. Their -0.14 correlation means they have often moved in opposite directions in the past. VTES charges 0.07%/yr vs 0.78%/yr for DBO.

Performance

VTES vs. DBO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Tax-Exempt Bond ETF (VTES) and Invesco DB Oil Fund (DBO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTES achieves a 0.37% return, which is significantly lower than DBO's 76.48% 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%

DBO

• 1D: 1.56%
• 1M: 24.59%
• 6M: 53.46%
• YTD: 76.48%
• 1Y: 60.30%
• 3Y*: 14.86%
• 5Y*: 13.46%
• 10Y*: 12.59%
• ALL TIME*: 0.52%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DBO Invesco DB Oil Fund	$11.01M	$10.23M	$13.95M
VTES Vanguard Short-Term Tax-Exempt Bond ETF	$19.78M	$19.18M	$17.67M

VTES vs. DBO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VTES Vanguard Short-Term Tax-Exempt Bond ETF	0.37%	4.19%	1.85%	3.32%
DBO Invesco DB Oil Fund	76.48%	-11.71%	7.85%	-1.26%

Correlation

The correlation between VTES and DBO is -0.29, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.29
Correlation (3Y) Balances recent behavior with more history.	-0.15
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023	-0.14

The correlation between VTES and DBO shifts across timeframes, from -0.29 (1 year) to -0.14 (all time), reflecting how their relationship changes across market environments.

Return for Risk

VTES vs. DBO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VTES

VTES Risk / Return Rank: 58
VTES Sharpe Ratio Rank: 69
VTES Sortino Ratio Rank: 65
VTES Omega Ratio Rank: 78
VTES Calmar Ratio Rank: 39
VTES Martin Ratio Rank: 37

DBO

DBO Risk / Return Rank: 58
DBO Sharpe Ratio Rank: 62
DBO Sortino Ratio Rank: 61
DBO Omega Ratio Rank: 57
DBO Calmar Ratio Rank: 57
DBO Martin Ratio Rank: 52

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VTES vs. DBO - 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 DB Oil Fund (DBO). 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	DBO	Difference
Sharpe ratio: Return per unit of total volatility	1.55	1.45	+0.10
Sortino ratio: Return per unit of downside risk	2.15	2.05	+0.10
Omega ratio: Gain probability vs. loss probability	1.32	1.25	+0.07
Calmar ratio: Return relative to maximum drawdown	1.38	2.01	-0.62
Martin ratio: Return relative to average drawdown	3.68	6.09	-2.41

VTES vs. DBO - Sharpe Ratio Comparison

The current VTES Sharpe Ratio is 1.55, which is comparable to the DBO Sharpe Ratio of 1.45. The chart below compares the historical Sharpe Ratios of VTES and DBO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VTES vs. DBO - Drawdown Comparison

The maximum VTES drawdown since its inception was -2.42%, smaller than the maximum DBO drawdown of -90.18%. Use the drawdown chart below to compare losses from any high point for VTES and DBO.

Drawdown Indicators

	VTES	DBO	Difference
Max Drawdown Largest peak-to-trough decline	-2.42%	-90.18%	+87.76%
Max Drawdown (1Y) Largest decline over 1 year	-1.47%	-27.73%	+26.26%
Max Drawdown (3Y) Largest decline over 3 years	-1.59%	-28.20%	+26.61%
Max Drawdown (5Y) Largest decline over 5 years	—	-37.68%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-61.69%	—
Current Drawdown Current decline from peak	-0.90%	-53.56%	+52.66%
Average Drawdown Average peak-to-trough decline	-0.50%	-62.20%	+61.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.55%	9.96%	-9.41%

Volatility

VTES vs. DBO - Volatility Comparison

The current volatility for Vanguard Short-Term Tax-Exempt Bond ETF (VTES) is 0.45%, while Invesco DB Oil Fund (DBO) has a volatility of 17.75%. This indicates that VTES experiences smaller price fluctuations and is considered to be less risky than DBO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTES	DBO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.45%	17.75%	-17.30%
Volatility (6M) Calculated over the trailing 6-month period	1.03%	33.77%	-32.74%
Volatility (1Y) Calculated over the trailing 1-year period	1.31%	38.53%	-37.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.70%	33.35%	-31.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.70%	32.20%	-30.50%

VTES vs. DBO - Expense Ratio Comparison

VTES has a 0.07% expense ratio, which is lower than DBO's 0.78% expense ratio.

Dividends

VTES vs. DBO - Dividend Comparison

VTES's dividend yield for the trailing twelve months is around 2.75%, more than DBO's 1.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
DBO Invesco DB Oil Fund	1.99%	3.51%	4.68%	4.59%	0.66%	0.00%	0.00%	1.63%	1.58%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	2.52%	2.77%	2.99%	2.03%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VTES and DBO in my portfolio?

VTES and DBO have a correlation of -0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTES or DBO?

DBO has higher volatility (17.75%) compared to VTES (0.45%). In terms of maximum drawdown, VTES dropped -2.42% vs DBO's -90.18%.

Which ETF is better, VTES or DBO?

On 3-year performance, DBO leads with 14.86% vs 2.94% for VTES. 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.

Which ETF has performed better, VTES or DBO?

Over the 3-year period, DBO has performed better with a 14.86% return vs 2.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTES or DBO?

VTES is cheaper with a 0.07% expense ratio, compared with 0.78% for DBO.

Which ETF pays a higher dividend yield, VTES or DBO?

VTES has the higher dividend yield at 2.52%, compared with 1.99% for DBO.

What is the main difference between VTES and DBO?

VTES is categorized as Municipal Bonds, while DBO is Oil & Gas. VTES tracks S&P 0-7 Year National AMT-Free Municipal Bond Index, while DBO tracks DBIQ Optimum Yield Crude Oil Index Excess Return. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.07% for VTES and 0.78% for DBO.

Which has better risk-adjusted returns?

VTES currently has the higher Sharpe Ratio (1.55 vs 1.45), 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.