VTES vs. MNBD

Last updated Aug 2, 2026

VTES (Vanguard Short-Term Tax-Exempt Bond ETF) and MNBD (ALPS Intermediate Municipal Bond ETF) are both Municipal Bonds funds. VTES is passively managed, while MNBD is actively managed. Over the past 3 years, VTES returned 2.94%/yr vs 3.89%/yr for MNBD. Their 0.75 correlation means they have sometimes moved together and sometimes differently. VTES charges 0.07%/yr vs 0.50%/yr for MNBD.

Performance

VTES vs. MNBD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Tax-Exempt Bond ETF (VTES) and ALPS Intermediate Municipal Bond ETF (MNBD). 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 MNBD's 0.45% 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%

MNBD

• 1D: -0.02%
• 1M: -1.47%
• 6M: -0.55%
• YTD: 0.45%
• 1Y: 3.72%
• 3Y*: 3.89%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 4.12%

*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)
MNBD ALPS Intermediate Municipal Bond ETF	$163.33K	$124.45K	$164.47K
VTES Vanguard Short-Term Tax-Exempt Bond ETF	$19.78M	$19.18M	$17.67M

VTES vs. MNBD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VTES Vanguard Short-Term Tax-Exempt Bond ETF	0.37%	4.19%	1.85%	3.32%
MNBD ALPS Intermediate Municipal Bond ETF	0.45%	5.15%	2.41%	5.69%

Correlation

The correlation between VTES and MNBD is 0.65, 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.	0.65
Correlation (3Y) Balances recent behavior with more history.	0.73
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023	0.75

The correlation between VTES and MNBD has been stable across timeframes, ranging from 0.65 to 0.75 - a consistent structural relationship.

Return for Risk

VTES vs. MNBD — 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

MNBD

MNBD Risk / Return Rank: 64
MNBD Sharpe Ratio Rank: 72
MNBD Sortino Ratio Rank: 72
MNBD Omega Ratio Rank: 78
MNBD Calmar Ratio Rank: 50
MNBD Martin Ratio Rank: 47

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. MNBD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Tax-Exempt Bond ETF (VTES) and ALPS Intermediate Municipal Bond ETF (MNBD). 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	MNBD	Difference
Sharpe ratio: Return per unit of total volatility	1.55	1.64	-0.09
Sortino ratio: Return per unit of downside risk	2.15	2.33	-0.18
Omega ratio: Gain probability vs. loss probability	1.32	1.33	0.00
Calmar ratio: Return relative to maximum drawdown	1.38	1.80	-0.42
Martin ratio: Return relative to average drawdown	3.68	5.32	-1.64

VTES vs. MNBD - Sharpe Ratio Comparison

The current VTES Sharpe Ratio is 1.55, which is comparable to the MNBD Sharpe Ratio of 1.64. The chart below compares the historical Sharpe Ratios of VTES and MNBD, 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. MNBD - Drawdown Comparison

The maximum VTES drawdown since its inception was -2.42%, smaller than the maximum MNBD drawdown of -5.89%. Use the drawdown chart below to compare losses from any high point for VTES and MNBD.

Drawdown Indicators

	VTES	MNBD	Difference
Max Drawdown Largest peak-to-trough decline	-2.42%	-5.89%	+3.47%
Max Drawdown (1Y) Largest decline over 1 year	-1.47%	-2.38%	+0.91%
Max Drawdown (3Y) Largest decline over 3 years	-1.59%	-3.22%	+1.63%
Current Drawdown Current decline from peak	-0.90%	-1.77%	+0.87%
Average Drawdown Average peak-to-trough decline	-0.50%	-1.08%	+0.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.55%	0.81%	-0.26%

Volatility

VTES vs. MNBD - Volatility Comparison

The current volatility for Vanguard Short-Term Tax-Exempt Bond ETF (VTES) is 0.45%, while ALPS Intermediate Municipal Bond ETF (MNBD) has a volatility of 0.84%. This indicates that VTES experiences smaller price fluctuations and is considered to be less risky than MNBD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTES	MNBD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.45%	0.84%	-0.39%
Volatility (6M) Calculated over the trailing 6-month period	1.03%	1.98%	-0.95%
Volatility (1Y) Calculated over the trailing 1-year period	1.31%	2.62%	-1.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.70%	3.74%	-2.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.70%	3.74%	-2.04%

VTES vs. MNBD - Expense Ratio Comparison

VTES has a 0.07% expense ratio, which is lower than MNBD's 0.50% expense ratio.

Dividends

VTES vs. MNBD - Dividend Comparison

VTES's dividend yield for the trailing twelve months is around 2.75%, less than MNBD's 3.37% yield.

Position	TTM	2025	2024	2023	2022
MNBD ALPS Intermediate Municipal Bond ETF	3.37%	3.32%	3.83%	3.44%	2.40%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	2.52%	2.77%	2.99%	2.03%	0.00%

Frequently Asked Questions

Can I hold both VTES and MNBD in my portfolio?

VTES and MNBD have a correlation of 0.65, 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 MNBD?

MNBD has higher volatility (0.84%) compared to VTES (0.45%). In terms of maximum drawdown, VTES dropped -2.42% vs MNBD's -5.89%.

Which ETF is better, VTES or MNBD?

On 3-year performance, MNBD leads with 3.89% 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 MNBD?

Over the 3-year period, MNBD has performed better with a 3.89% 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 MNBD?

VTES is cheaper with a 0.07% expense ratio, compared with 0.50% for MNBD.

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

MNBD has the higher dividend yield at 3.37%, compared with 2.52% for VTES.

What is the main difference between VTES and MNBD?

They also come from different issuers: Vanguard and ALPS. Their fees differ too: 0.07% for VTES and 0.50% for MNBD.

Which has better risk-adjusted returns?

MNBD currently has the higher Sharpe Ratio (1.64 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.