VTES vs. ZMUN

Last updated Aug 2, 2026

VTES (Vanguard Short-Term Tax-Exempt Bond ETF) and ZMUN (F/m Ultrashort Tax-Free Municipal ETF) are both Municipal Bonds funds - VTES tracks the S&P 0-7 Year National AMT-Free Municipal Bond Index while ZMUN tracks the Bloomberg Municipal Bond Currently Callable Index. Both are passively managed. Their 0.23 correlation means their historical movements had little consistent relationship. VTES charges 0.07%/yr vs 0.30%/yr for ZMUN.

Performance

VTES vs. ZMUN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Tax-Exempt Bond ETF (VTES) and F/m Ultrashort Tax-Free Municipal ETF (ZMUN). 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 ZMUN's 2.09% 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%

ZMUN

• 1D: 0.04%
• 1M: 0.20%
• 6M: 1.82%
• YTD: 2.09%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

*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)
VTES Vanguard Short-Term Tax-Exempt Bond ETF	$19.78M	$19.18M	$17.67M
ZMUN F/m Ultrashort Tax-Free Municipal ETF	$247.22K	$279.15K	$385.45K

VTES vs. ZMUN - Yearly Performance Comparison

	2026 (YTD)	2025
VTES Vanguard Short-Term Tax-Exempt Bond ETF	0.37%	0.61%
ZMUN F/m Ultrashort Tax-Free Municipal ETF	2.09%	0.67%

Correlation

The correlation between VTES and ZMUN is 0.23, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (All Time) Calculated using the full available price history since Sep 30, 2025	0.23

Return for Risk

VTES vs. ZMUN — 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

ZMUN

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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. ZMUN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Tax-Exempt Bond ETF (VTES) and F/m Ultrashort Tax-Free Municipal ETF (ZMUN). 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	ZMUN	Difference
Sharpe ratio: Return per unit of total volatility	1.55	—	—
Sortino ratio: Return per unit of downside risk	2.15	—	—
Omega ratio: Gain probability vs. loss probability	1.32	—	—
Calmar ratio: Return relative to maximum drawdown	1.38	—	—
Martin ratio: Return relative to average drawdown	3.68	—	—

Drawdowns

VTES vs. ZMUN - Drawdown Comparison

The maximum VTES drawdown since its inception was -2.42%, which is greater than ZMUN's maximum drawdown of -0.13%. Use the drawdown chart below to compare losses from any high point for VTES and ZMUN.

Drawdown Indicators

	VTES	ZMUN	Difference
Max Drawdown Largest peak-to-trough decline	-2.42%	-0.13%	-2.29%
Max Drawdown (1Y) Largest decline over 1 year	-1.47%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-1.59%	—	—
Current Drawdown Current decline from peak	-0.90%	0.00%	-0.90%
Average Drawdown Average peak-to-trough decline	-0.50%	-0.02%	-0.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.55%	—	—

Volatility

Volatility by Period

	VTES	ZMUN	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.45%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.03%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.31%	0.54%	+0.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.70%	0.54%	+1.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.70%	0.54%	+1.16%

VTES vs. ZMUN - Expense Ratio Comparison

VTES has a 0.07% expense ratio, which is lower than ZMUN's 0.30% expense ratio.

Dividends

VTES vs. ZMUN - Dividend Comparison

VTES's dividend yield for the trailing twelve months is around 2.75%, less than ZMUN's 2.92% yield.

Position	TTM	2025	2024	2023
VTES Vanguard Short-Term Tax-Exempt Bond ETF	2.52%	2.77%	2.99%	2.03%
ZMUN F/m Ultrashort Tax-Free Municipal ETF	2.92%	0.70%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VTES and ZMUN in my portfolio?

VTES and ZMUN have a correlation of 0.23, 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 ZMUN?

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 ZMUN?

VTES is cheaper with a 0.07% expense ratio, compared with 0.30% for ZMUN.

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

ZMUN has the higher dividend yield at 2.92%, compared with 2.52% for VTES.

What is the main difference between VTES and ZMUN?

VTES tracks S&P 0-7 Year National AMT-Free Municipal Bond Index, while ZMUN tracks Bloomberg Municipal Bond Currently Callable Index. They also come from different issuers: Vanguard and F/m. Their fees differ too: 0.07% for VTES and 0.30% for ZMUN.