VTES vs. TAIFX

Last updated Jun 13, 2026

VTES (Vanguard Short-Term Tax-Exempt Bond ETF) and TAIFX (American Funds Tax-Aware Conservative Growth & Income Portfolio F1) are both funds - VTES is a Municipal Bonds fund tracking the S&P 0-7 Year National AMT-Free Municipal Bond Index, while TAIFX is a Diversified Portfolio fund actively managed by American Funds. VTES is passively managed, while TAIFX is actively managed. Over the past 3 years, VTES returned 3.18%/yr vs 12.29%/yr for TAIFX. At a 0.28 correlation, their price movements are largely independent. VTES charges 0.07%/yr vs 0.70%/yr for TAIFX.

Performance

VTES vs. TAIFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Tax-Exempt Bond ETF (VTES) and American Funds Tax-Aware Conservative Growth & Income Portfolio F1 (TAIFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTES achieves a 0.67% return, which is significantly lower than TAIFX's 5.74% return.

VTES

• 1D: -0.03%
• 1M: 0.39%
• YTD: 0.67%
• 6M: 0.96%
• 1Y: 3.33%
• 3Y*: 3.18%
• 5Y*: —
• 10Y*: —

TAIFX

• 1D: 1.08%
• 1M: 0.68%
• YTD: 5.74%
• 6M: 6.46%
• 1Y: 14.61%
• 3Y*: 12.29%
• 5Y*: 6.63%
• 10Y*: 7.79%

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

VTES vs. TAIFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VTES Vanguard Short-Term Tax-Exempt Bond ETF	0.67%	4.19%	1.85%	3.32%
TAIFX American Funds Tax-Aware Conservative Growth & Income Portfolio F1	5.74%	13.74%	9.96%	10.68%

Correlation

The correlation between VTES and TAIFX is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.32
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023	0.28

Return for Risk

VTES vs. TAIFX — Risk / Return Rank

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

VTES

VTES Risk / Return Rank: 75
VTES Sharpe Ratio Rank: 90
VTES Sortino Ratio Rank: 92
VTES Omega Ratio Rank: 94
VTES Calmar Ratio Rank: 52
VTES Martin Ratio Rank: 46

TAIFX

TAIFX Risk / Return Rank: 76
TAIFX Sharpe Ratio Rank: 81
TAIFX Sortino Ratio Rank: 79
TAIFX Omega Ratio Rank: 81
TAIFX Calmar Ratio Rank: 63
TAIFX Martin Ratio Rank: 75

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. TAIFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Tax-Exempt Bond ETF (VTES) and American Funds Tax-Aware Conservative Growth & Income Portfolio F1 (TAIFX). 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	TAIFX	Difference
Sharpe ratio: Return per unit of total volatility	2.70	2.27	+0.43
Sortino ratio: Return per unit of downside risk	3.88	3.21	+0.67
Omega ratio: Gain probability vs. loss probability	1.62	1.45	+0.17
Calmar ratio: Return relative to maximum drawdown	2.28	2.57	-0.29
Martin ratio: Return relative to average drawdown	6.62	11.61	-4.98

VTES vs. TAIFX - Sharpe Ratio Comparison

The current VTES Sharpe Ratio is 2.70, which is comparable to the TAIFX Sharpe Ratio of 2.27. The chart below compares the historical Sharpe Ratios of VTES and TAIFX, 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. TAIFX - Drawdown Comparison

The maximum VTES drawdown since its inception was -2.42%, smaller than the maximum TAIFX drawdown of -21.43%. Use the drawdown chart below to compare losses from any high point for VTES and TAIFX.

Drawdown Indicators

	VTES	TAIFX	Difference
Max Drawdown Largest peak-to-trough decline	-2.42%	-21.43%	+19.01%
Max Drawdown (1Y) Largest decline over 1 year	-1.47%	-5.85%	+4.38%
Max Drawdown (3Y) Largest decline over 3 years	-1.80%	-8.35%	+6.55%
Max Drawdown (5Y) Largest decline over 5 years	—	-16.79%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-21.43%	—
Current Drawdown Current decline from peak	-0.60%	-0.73%	+0.13%
Average Drawdown Average peak-to-trough decline	-0.50%	-2.20%	+1.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.50%	1.29%	-0.79%

Volatility

VTES vs. TAIFX - Volatility Comparison

The current volatility for Vanguard Short-Term Tax-Exempt Bond ETF (VTES) is 0.35%, while American Funds Tax-Aware Conservative Growth & Income Portfolio F1 (TAIFX) has a volatility of 2.58%. This indicates that VTES experiences smaller price fluctuations and is considered to be less risky than TAIFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTES	TAIFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.35%	2.58%	-2.23%
Volatility (6M) Calculated over the trailing 6-month period	0.98%	5.59%	-4.61%
Volatility (1Y) Calculated over the trailing 1-year period	1.24%	6.63%	-5.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.71%	7.64%	-5.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.71%	8.18%	-6.47%

VTES vs. TAIFX - Expense Ratio Comparison

VTES has a 0.07% expense ratio, which is lower than TAIFX's 0.70% expense ratio.

Dividends

VTES vs. TAIFX - Dividend Comparison

VTES's dividend yield for the trailing twelve months is around 2.75%, less than TAIFX's 5.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TAIFX American Funds Tax-Aware Conservative Growth & Income Portfolio F1	5.13%	5.50%	5.11%	4.25%	4.32%	2.40%	2.60%	3.72%	4.52%	4.08%	3.57%	3.41%
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

Can I hold both VTES and TAIFX in my portfolio?

VTES and TAIFX have a correlation of 0.31, 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 TAIFX?

TAIFX has higher volatility (2.58%) compared to VTES (0.35%). In terms of maximum drawdown, VTES dropped -2.42% vs TAIFX's -21.43%.

Which has better risk-adjusted returns?

VTES currently has the higher Sharpe Ratio (2.70 vs 2.27), 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.