VTES vs. VWSUX

Last updated Jun 3, 2026

VTES (Vanguard Short-Term Tax-Exempt Bond ETF Shares) and VWSUX (Vanguard Short-Term Tax-Exempt Fund Admiral Shares) are both Municipal Bonds funds from Vanguard. Over the past 3 years, VTES returned 3.22%/yr vs 4.14%/yr for VWSUX. A 0.57 correlation means they provide meaningful diversification when combined. VTES charges 0.07%/yr vs 0.09%/yr for VWSUX.

Performance

VTES vs. VWSUX - 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 Vanguard Short-Term Tax-Exempt Fund Admiral Shares (VWSUX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTES achieves a 0.65% return, which is significantly lower than VWSUX's 1.14% return.

VTES

• 1D: 0.06%
• 1M: 0.28%
• YTD: 0.65%
• 6M: 1.08%
• 1Y: 3.72%
• 3Y*: 3.22%
• 5Y*: —
• 10Y*: —

VWSUX

• 1D: 0.00%
• 1M: 0.25%
• YTD: 1.14%
• 6M: 1.54%
• 1Y: 3.76%
• 3Y*: 4.14%
• 5Y*: 2.53%
• 10Y*: 2.01%

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

VTES vs. VWSUX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	0.65%	4.19%	1.85%	3.32%
VWSUX Vanguard Short-Term Tax-Exempt Fund Admiral Shares	1.14%	4.90%	3.77%	3.32%

Correlation

The correlation between VTES and VWSUX is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (All Time) Calculated using the full available price history since Mar 10, 2023	0.57

The correlation between VTES and VWSUX has been stable across timeframes, ranging from 0.52 to 0.57 - a consistent structural relationship.

Return for Risk

VTES vs. VWSUX — Risk / Return Rank

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

VTES

VTES Risk / Return Rank: 74
VTES Sharpe Ratio Rank: 88
VTES Sortino Ratio Rank: 91
VTES Omega Ratio Rank: 95
VTES Calmar Ratio Rank: 51
VTES Martin Ratio Rank: 46

VWSUX

VWSUX Risk / Return Rank: 97
VWSUX Sharpe Ratio Rank: 96
VWSUX Sortino Ratio Rank: 99
VWSUX Omega Ratio Rank: 99
VWSUX Calmar Ratio Rank: 95
VWSUX Martin Ratio Rank: 97

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. VWSUX - 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 Vanguard Short-Term Tax-Exempt Fund Admiral Shares (VWSUX). 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	VWSUX	Difference
Sharpe ratio Return per unit of total volatility	3.01	3.40	-0.39
Sortino ratio Return per unit of downside risk	4.36	8.59	-4.23
Omega ratio Gain probability vs. loss probability	1.71	2.68	-0.97
Calmar ratio Return relative to maximum drawdown	2.54	5.86	-3.31
Martin ratio Return relative to average drawdown	7.58	26.21	-18.63
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTES vs. VWSUX - Sharpe Ratio Comparison

The current VTES Sharpe Ratio is 3.01, which is comparable to the VWSUX Sharpe Ratio of 3.40. The chart below compares the historical Sharpe Ratios of VTES and VWSUX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VTES	VWSUX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.01	3.40	-0.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	2.08	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.79	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.81	2.05	-0.24

Drawdowns

VTES vs. VWSUX - Drawdown Comparison

The maximum VTES drawdown since its inception was -2.42%, smaller than the maximum VWSUX drawdown of -3.08%. Use the drawdown chart below to compare losses from any high point for VTES and VWSUX.

Drawdown Indicators

	VTES	VWSUX	Difference
Max Drawdown Largest peak-to-trough decline	-2.42%	-3.08%	+0.66%
Max Drawdown (1Y) Largest decline over 1 year	-1.47%	-0.69%	-0.78%
Max Drawdown (3Y) Largest decline over 3 years	-1.80%	-1.01%	-0.79%
Max Drawdown (5Y) Largest decline over 5 years	—	-2.23%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-3.08%	—
Current Drawdown Current decline from peak	-0.63%	0.00%	-0.63%
Average Drawdown Average peak-to-trough decline	-0.50%	-0.15%	-0.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.49%	0.15%	+0.34%

Volatility

VTES vs. VWSUX - Volatility Comparison

The current volatility for Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES) is 0.35%, while Vanguard Short-Term Tax-Exempt Fund Admiral Shares (VWSUX) has a volatility of 0.38%. This indicates that VTES experiences smaller price fluctuations and is considered to be less risky than VWSUX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTES	VWSUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.35%	0.38%	-0.03%
Volatility (6M) Calculated over the trailing 6-month period	0.97%	0.86%	+0.11%
Volatility (1Y) Calculated over the trailing 1-year period	1.24%	1.11%	+0.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.72%	1.23%	+0.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.72%	1.12%	+0.60%

VTES vs. VWSUX - Expense Ratio Comparison

VTES has a 0.07% expense ratio, which is lower than VWSUX's 0.09% 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. VWSUX - Dividend Comparison

VTES's dividend yield for the trailing twelve months is around 2.75%, less than VWSUX's 3.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	2.75%	2.77%	2.99%	2.03%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VWSUX Vanguard Short-Term Tax-Exempt Fund Admiral Shares	3.12%	4.00%	3.82%	2.27%	1.24%	0.63%	1.26%	1.79%	1.53%	1.16%	0.97%	0.78%

Frequently Asked Questions

Can I hold both VTES and VWSUX in my portfolio?

VTES and VWSUX have a correlation of 0.52, 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 VWSUX?

VWSUX has higher volatility (0.38%) compared to VTES (0.35%). In terms of maximum drawdown, VTES dropped -2.42% vs VWSUX's -3.08%.

Which has better risk-adjusted returns?

VWSUX currently has the higher Sharpe Ratio (3.40 vs 3.01), 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.