VTES vs. JMST

Last updated Jun 19, 2026

VTES (Vanguard Short-Term Tax-Exempt Bond ETF) and JMST (JPMorgan Ultra-Short Municipal Income ETF) 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 JMST is a Ultrashort Bond fund actively managed by JPMorgan. VTES is passively managed, while JMST is actively managed. Over the past 3 years, VTES returned 3.16%/yr vs 3.31%/yr for JMST. At a 0.38 correlation, their price movements are largely independent. VTES charges 0.07%/yr vs 0.18%/yr for JMST.

Performance

VTES vs. JMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Tax-Exempt Bond ETF (VTES) and JPMorgan Ultra-Short Municipal Income ETF (JMST). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTES achieves a 0.76% return, which is significantly lower than JMST's 1.03% return.

VTES

• 1D: 0.10%
• 1M: 0.75%
• YTD: 0.76%
• 6M: 0.98%
• 1Y: 3.37%
• 3Y*: 3.16%
• 5Y*: —
• 10Y*: —

JMST

• 1D: -0.08%
• 1M: 0.30%
• YTD: 1.03%
• 6M: 1.24%
• 1Y: 2.85%
• 3Y*: 3.31%
• 5Y*: 2.28%
• 10Y*: —

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

VTES vs. JMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VTES Vanguard Short-Term Tax-Exempt Bond ETF	0.76%	4.19%	1.85%	3.32%
JMST JPMorgan Ultra-Short Municipal Income ETF	1.03%	3.35%	3.31%	3.12%

Correlation

The correlation between VTES and JMST is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023	0.38

The correlation between VTES and JMST shifts across timeframes, from 0.25 (1 year) to 0.38 (all time), reflecting how their relationship changes across market environments.

Return for Risk

VTES vs. JMST — Risk / Return Rank

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

VTES

VTES Risk / Return Rank: 73
VTES Sharpe Ratio Rank: 89
VTES Sortino Ratio Rank: 91
VTES Omega Ratio Rank: 94
VTES Calmar Ratio Rank: 49
VTES Martin Ratio Rank: 43

JMST

JMST Risk / Return Rank: 98
JMST Sharpe Ratio Rank: 98
JMST Sortino Ratio Rank: 98
JMST Omega Ratio Rank: 98
JMST Calmar Ratio Rank: 98
JMST Martin Ratio Rank: 98

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.

VTES vs. JMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Tax-Exempt Bond ETF (VTES) and JPMorgan Ultra-Short Municipal Income ETF (JMST). 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	JMST	Difference
Sharpe ratio: Return per unit of total volatility	2.72	4.79	-2.07
Sortino ratio: Return per unit of downside risk	3.93	7.79	-3.87
Omega ratio: Gain probability vs. loss probability	1.63	2.39	-0.76
Calmar ratio: Return relative to maximum drawdown	2.30	11.22	-8.92
Martin ratio: Return relative to average drawdown	6.63	60.97	-54.34

VTES vs. JMST - Sharpe Ratio Comparison

The current VTES Sharpe Ratio is 2.72, which is lower than the JMST Sharpe Ratio of 4.79. The chart below compares the historical Sharpe Ratios of VTES and JMST, 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. JMST - Drawdown Comparison

The maximum VTES drawdown since its inception was -2.42%, roughly equal to the maximum JMST drawdown of -2.41%. Use the drawdown chart below to compare losses from any high point for VTES and JMST.

Drawdown Indicators

	VTES	JMST	Difference
Max Drawdown Largest peak-to-trough decline	-2.42%	-2.41%	-0.01%
Max Drawdown (1Y) Largest decline over 1 year	-1.47%	-0.25%	-1.22%
Max Drawdown (3Y) Largest decline over 3 years	-1.80%	-0.71%	-1.09%
Max Drawdown (5Y) Largest decline over 5 years	—	-1.15%	—
Current Drawdown Current decline from peak	-0.52%	-0.08%	-0.44%
Average Drawdown Average peak-to-trough decline	-0.50%	-0.12%	-0.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.51%	0.05%	+0.46%

Volatility

VTES vs. JMST - Volatility Comparison

Vanguard Short-Term Tax-Exempt Bond ETF (VTES) has a higher volatility of 0.27% compared to JPMorgan Ultra-Short Municipal Income ETF (JMST) at 0.19%. This indicates that VTES's price experiences larger fluctuations and is considered to be riskier than JMST based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTES	JMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.27%	0.19%	+0.08%
Volatility (6M) Calculated over the trailing 6-month period	0.98%	0.42%	+0.56%
Volatility (1Y) Calculated over the trailing 1-year period	1.24%	0.60%	+0.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.71%	0.83%	+0.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.71%	1.13%	+0.58%

VTES vs. JMST - Expense Ratio Comparison

VTES has a 0.07% expense ratio, which is lower than JMST'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. JMST - Dividend Comparison

VTES's dividend yield for the trailing twelve months is around 2.75%, more than JMST's 2.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
JMST JPMorgan Ultra-Short Municipal Income ETF	2.65%	2.84%	3.32%	3.09%	1.10%	0.27%	0.87%	1.63%	0.28%
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%

Frequently Asked Questions

Can I hold both VTES and JMST in my portfolio?

VTES and JMST have a correlation of 0.25, 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 JMST?

VTES has higher volatility (0.27%) compared to JMST (0.19%). In terms of maximum drawdown, VTES dropped -2.42% vs JMST's -2.41%.

Which ETF is better, VTES or JMST?

On 3-year performance, JMST leads with 3.31% vs 3.16% for VTES. On fees, VTES is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTES or JMST?

Over the 3-year period, JMST has performed better with a 3.31% return vs 3.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTES or JMST?

VTES is cheaper with a 0.07% expense ratio, compared with 0.18% for JMST.

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

VTES has the higher dividend yield at 2.75%, compared with 2.65% for JMST.

What is the main difference between VTES and JMST?

VTES is categorized as Municipal Bonds, while JMST is Ultrashort Bond. They also come from different issuers: Vanguard and JPMorgan. Their fees differ too: 0.07% for VTES and 0.18% for JMST.

Which has better risk-adjusted returns?

JMST currently has the higher Sharpe Ratio (4.79 vs 2.72), 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.