VTES vs. FTBFX
VTES (Vanguard Short-Term Tax-Exempt Bond ETF) and FTBFX (Fidelity Total Bond Fund) are both funds - VTES is a Municipal Bonds fund tracking the S&P 0-7 Year National AMT-Free Municipal Bond Index, while FTBFX is a Intermediate Core-Plus Bond fund actively managed by Fidelity. VTES is passively managed, while FTBFX is actively managed. Over the past 3 years, VTES returned 3.18%/yr vs 4.80%/yr for FTBFX. A 0.63 correlation means they provide meaningful diversification when combined. VTES charges 0.07%/yr vs 0.45%/yr for FTBFX.
Performance
VTES vs. FTBFX - Performance Comparison
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Returns By Period
In the year-to-date period, VTES achieves a 0.67% return, which is significantly higher than FTBFX's 0.57% return.
VTES
- 1D
- -0.03%
- 1M
- 0.42%
- YTD
- 0.67%
- 6M
- 0.96%
- 1Y
- 3.39%
- 3Y*
- 3.18%
- 5Y*
- —
- 10Y*
- —
FTBFX
- 1D
- 0.53%
- 1M
- 0.47%
- YTD
- 0.57%
- 6M
- 1.02%
- 1Y
- 5.30%
- 3Y*
- 4.80%
- 5Y*
- 0.60%
- 10Y*
- 2.43%
VTES vs. FTBFX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
VTES Vanguard Short-Term Tax-Exempt Bond ETF | 0.67% | 4.19% | 1.85% | 3.32% |
FTBFX Fidelity Total Bond Fund | 0.57% | 7.50% | 2.13% | 6.10% |
Correlation
The correlation between VTES and FTBFX is 0.54, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.54 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023 | 0.63 |
The correlation between VTES and FTBFX has been stable across timeframes, ranging from 0.54 to 0.63 - a consistent structural relationship.
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Return for Risk
VTES vs. FTBFX — Risk / Return Rank
VTES
FTBFX
VTES vs. FTBFX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Tax-Exempt Bond ETF (VTES) and Fidelity Total Bond Fund (FTBFX). 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 | FTBFX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.33 | ||
| Sortino ratioReturn per unit of downside risk | +1.83 | ||
| Omega ratioGain probability vs. loss probability | 1.62 | 1.24 | +0.38 |
| Calmar ratioReturn relative to maximum drawdown | 2.28 | 1.80 | +0.48 |
| Martin ratioReturn relative to average drawdown | 6.62 | 5.30 | +1.32 |
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Drawdowns
VTES vs. FTBFX - Drawdown Comparison
The maximum VTES drawdown since its inception was -2.42%, smaller than the maximum FTBFX drawdown of -18.25%. Use the drawdown chart below to compare losses from any high point for VTES and FTBFX.
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Drawdown Indicators
| VTES | FTBFX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -2.42% | -18.25% | +15.83% |
Max Drawdown (1Y)Largest decline over 1 year | -1.47% | -2.89% | +1.42% |
Max Drawdown (3Y)Largest decline over 3 years | -1.80% | -5.82% | +4.02% |
Max Drawdown (5Y)Largest decline over 5 years | — | -18.25% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.25% | — |
Current DrawdownCurrent decline from peak | -0.60% | -1.31% | +0.71% |
Average DrawdownAverage peak-to-trough decline | -0.50% | -2.32% | +1.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.50% | 0.98% | -0.48% |
Volatility
VTES vs. FTBFX - Volatility Comparison
The current volatility for Vanguard Short-Term Tax-Exempt Bond ETF (VTES) is 0.35%, while Fidelity Total Bond Fund (FTBFX) has a volatility of 1.43%. This indicates that VTES experiences smaller price fluctuations and is considered to be less risky than FTBFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTES | FTBFX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 1.43% | -1.08% |
Volatility (6M)Calculated over the trailing 6-month period | 0.98% | 2.85% | -1.87% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.24% | 3.84% | -2.60% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.71% | 5.67% | -3.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.71% | 4.73% | -3.02% |
VTES vs. FTBFX - Expense Ratio Comparison
VTES has a 0.07% expense ratio, which is lower than FTBFX's 0.45% expense ratio.
Dividends
VTES vs. FTBFX - Dividend Comparison
VTES's dividend yield for the trailing twelve months is around 2.75%, less than FTBFX's 4.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FTBFX Fidelity Total Bond Fund | 4.36% | 4.36% | 4.15% | 4.15% | 2.54% | 1.89% | 5.22% | 3.03% | 3.19% | 2.97% | 3.61% | 3.30% |
VTES Vanguard Short-Term Tax-Exempt Bond ETF | 2.75% | 2.77% | 2.99% | 2.03% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
VTES and FTBFX have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FTBFX has higher volatility (1.43%) compared to VTES (0.35%). In terms of maximum drawdown, VTES dropped -2.42% vs FTBFX's -18.25%.
VTES currently has the higher Sharpe Ratio (2.70 vs 1.36), 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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