VTES vs. ZMUN

Last updated Jun 3, 2026

VTES (Vanguard Short-Term Tax-Exempt Bond ETF Shares) and ZMUN (F/m Ultrashort Tax-Free Municipal ETF) are both Municipal Bonds funds - VTES tracks the S&P 0-7 Yr National AMT-Free Municipal Bond Index - Benchmark TR Gross while ZMUN tracks the Bloomberg Municipal Bond Currently Callable Index. Both are passively managed. At a 0.24 correlation, their price movements are largely independent. 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 Shares (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 0.65% return, which is significantly lower than ZMUN's 1.59% return.

VTES

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

ZMUN

• 1D: 0.07%
• 1M: 0.24%
• YTD: 1.59%
• 6M: 1.90%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VTES vs. ZMUN - Yearly Performance Comparison

	2026 (YTD)	2025
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	0.65%	0.58%
ZMUN F/m Ultrashort Tax-Free Municipal ETF	1.59%	0.73%

Correlation

The correlation between VTES and ZMUN is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Oct 1, 2025	0.24

Return for Risk

VTES vs. ZMUN — 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

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. ZMUN - 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 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.

	VTES	ZMUN	Difference
Sharpe ratio Return per unit of total volatility	3.01	—	—
Sortino ratio Return per unit of downside risk	4.36	—	—
Omega ratio Gain probability vs. loss probability	1.71	—	—
Calmar ratio Return relative to maximum drawdown	2.54	—	—
Martin ratio Return relative to average drawdown	7.58	—	—
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	ZMUN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.01	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.81	6.55	-4.74

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 -0.09%. 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%	-0.09%	-2.33%
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	-0.63%	0.00%	-0.63%
Average Drawdown Average peak-to-trough decline	-0.50%	-0.01%	-0.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.49%	—	—

Volatility

Volatility by Period

	VTES	ZMUN	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%	0.54%	+0.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.72%	0.54%	+1.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.72%	0.54%	+1.18%

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%, more than ZMUN's 2.28% yield.

Position	TTM	2025	2024	2023
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	2.75%	2.77%	2.99%	2.03%
ZMUN F/m Ultrashort Tax-Free Municipal ETF	2.28%	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 0.24, 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?

VTES has the higher dividend yield at 2.75%, compared with 2.28% for ZMUN.

What is the main difference between VTES and ZMUN?

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