VTES vs. THYM

Last updated Jun 4, 2026

VTES (Vanguard Short-Term Tax-Exempt Bond ETF Shares) and THYM (T. Rowe Price High Income Municipal ETF) are both exchange-traded funds - VTES is a Municipal Bonds fund tracking the S&P 0-7 Yr National AMT-Free Municipal Bond Index - Benchmark TR Gross, while THYM is a High Yield Muni fund actively managed by T. Rowe Price. VTES is passively managed, while THYM is actively managed. A 0.60 correlation means they provide meaningful diversification when combined. VTES charges 0.07%/yr vs 0.32%/yr for THYM.

Performance

VTES vs. THYM - Performance Comparison

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

Returns By Period

In the year-to-date period, VTES achieves a 0.66% return, which is significantly lower than THYM's 3.19% return.

VTES

• 1D: 0.01%
• 1M: 0.29%
• YTD: 0.66%
• 6M: 1.02%
• 1Y: 3.63%
• 3Y*: 3.23%
• 5Y*: —
• 10Y*: —

THYM

• 1D: 0.13%
• 1M: 0.89%
• YTD: 3.19%
• 6M: 3.63%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VTES vs. THYM - Yearly Performance Comparison

	2026 (YTD)	2025
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	0.66%	0.56%
THYM T. Rowe Price High Income Municipal ETF	3.19%	0.27%

Correlation

The correlation between VTES and THYM is 0.60, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Nov 21, 2025	0.61

Return for Risk

VTES vs. THYM — 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: 87
VTES Sortino Ratio Rank: 90
VTES Omega Ratio Rank: 94
VTES Calmar Ratio Rank: 49
VTES Martin Ratio Rank: 44

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. THYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES) and T. Rowe Price High Income Municipal ETF (THYM). 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.

	VTES	THYM	Difference
Sharpe ratio Return per unit of total volatility	2.94	—	—
Sortino ratio Return per unit of downside risk	4.26	—	—
Omega ratio Gain probability vs. loss probability	1.70	—	—
Calmar ratio Return relative to maximum drawdown	2.48	—	—
Martin ratio Return relative to average drawdown	7.36	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	VTES	THYM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.94	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.81	1.56	+0.25

Drawdowns

VTES vs. THYM - Drawdown Comparison

The maximum VTES drawdown since its inception was -2.42%, smaller than the maximum THYM drawdown of -2.93%. Use the drawdown chart below to compare losses from any high point for VTES and THYM.

Drawdown Indicators

	VTES	THYM	Difference
Max Drawdown Largest peak-to-trough decline	-2.42%	-2.93%	+0.51%
Max Drawdown (1Y) Largest decline over 1 year	-1.47%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-1.80%	—	—
Current Drawdown Current decline from peak	-0.62%	0.00%	-0.62%
Average Drawdown Average peak-to-trough decline	-0.50%	-0.49%	-0.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.49%	—	—

Volatility

Volatility by Period

	VTES	THYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.35%	—	—
Volatility (6M) Calculated over the trailing 6-month period	0.97%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.24%	4.36%	-3.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.72%	4.36%	-2.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.72%	4.36%	-2.64%

VTES vs. THYM - Expense Ratio Comparison

VTES has a 0.07% expense ratio, which is lower than THYM's 0.32% expense ratio.

Dividends

VTES vs. THYM - Dividend Comparison

VTES's dividend yield for the trailing twelve months is around 2.75%, more than THYM's 2.19% yield.

Position	TTM	2025	2024	2023
THYM T. Rowe Price High Income Municipal ETF	2.19%	0.37%	0.00%	0.00%
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	2.75%	2.77%	2.99%	2.03%

Frequently Asked Questions

Can I hold both VTES and THYM in my portfolio?

VTES and THYM have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VTES or THYM?

On fees, VTES is cheaper at 0.07% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VTES or THYM?

VTES is cheaper with a 0.07% expense ratio, compared with 0.32% for THYM.

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

VTES has the higher dividend yield at 2.75%, compared with 2.19% for THYM.

What is the main difference between VTES and THYM?

VTES is categorized as Municipal Bonds, while THYM is High Yield Muni. They also come from different issuers: Vanguard and T. Rowe Price. Their fees differ too: 0.07% for VTES and 0.32% for THYM.