VTI vs. VTES

Last updated Jun 13, 2026

VTI (Vanguard Total Stock Market ETF) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF) are both exchange-traded funds - VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index, while VTES is a Municipal Bonds fund tracking the S&P 0-7 Year National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 3 years, VTI returned 20.60%/yr vs 3.18%/yr for VTES. At a 0.13 correlation, their price movements are largely independent. VTI charges 0.03%/yr vs 0.07%/yr for VTES.

Performance

VTI vs. VTES - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Stock Market ETF (VTI) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTI achieves a 9.62% return, which is significantly higher than VTES's 0.67% return.

VTI

• 1D: 0.57%
• 1M: 0.45%
• YTD: 9.62%
• 6M: 9.69%
• 1Y: 24.78%
• 3Y*: 20.60%
• 5Y*: 12.20%
• 10Y*: 15.02%

VTES

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

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

VTI vs. VTES - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VTI Vanguard Total Stock Market ETF	9.62%	17.10%	23.81%	20.18%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	0.67%	4.19%	1.85%	3.32%

Correlation

The correlation between VTI and VTES is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023	0.13

Return for Risk

VTI vs. VTES — Risk / Return Rank

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

VTI

VTI Risk / Return Rank: 70
VTI Sharpe Ratio Rank: 70
VTI Sortino Ratio Rank: 68
VTI Omega Ratio Rank: 69
VTI Calmar Ratio Rank: 64
VTI Martin Ratio Rank: 76

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

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.

VTI vs. VTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Stock Market ETF (VTI) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES). 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.

	VTI	VTES	Difference
Sharpe ratio: Return per unit of total volatility	1.97	2.70	-0.73
Sortino ratio: Return per unit of downside risk	2.67	3.88	-1.21
Omega ratio: Gain probability vs. loss probability	1.35	1.62	-0.27
Calmar ratio: Return relative to maximum drawdown	2.79	2.28	+0.51
Martin ratio: Return relative to average drawdown	12.52	6.62	+5.90

VTI vs. VTES - Sharpe Ratio Comparison

The current VTI Sharpe Ratio is 1.97, which is comparable to the VTES Sharpe Ratio of 2.70. The chart below compares the historical Sharpe Ratios of VTI and VTES, 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

VTI vs. VTES - Drawdown Comparison

The maximum VTI drawdown since its inception was -55.45%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for VTI and VTES.

Drawdown Indicators

	VTI	VTES	Difference
Max Drawdown Largest peak-to-trough decline	-55.45%	-2.42%	-53.03%
Max Drawdown (1Y) Largest decline over 1 year	-8.92%	-1.47%	-7.45%
Max Drawdown (3Y) Largest decline over 3 years	-19.30%	-1.80%	-17.50%
Max Drawdown (5Y) Largest decline over 5 years	-25.36%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-35.00%	—	—
Current Drawdown Current decline from peak	-2.14%	-0.60%	-1.54%
Average Drawdown Average peak-to-trough decline	-8.02%	-0.50%	-7.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.99%	0.50%	+1.49%

Volatility

VTI vs. VTES - Volatility Comparison

Vanguard Total Stock Market ETF (VTI) has a higher volatility of 4.50% compared to Vanguard Short-Term Tax-Exempt Bond ETF (VTES) at 0.35%. This indicates that VTI's price experiences larger fluctuations and is considered to be riskier than VTES based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTI	VTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.50%	0.35%	+4.15%
Volatility (6M) Calculated over the trailing 6-month period	9.82%	0.98%	+8.84%
Volatility (1Y) Calculated over the trailing 1-year period	12.64%	1.24%	+11.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.47%	1.71%	+15.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.33%	1.71%	+16.62%

VTI vs. VTES - Expense Ratio Comparison

VTI has a 0.03% expense ratio, which is lower than VTES's 0.07% 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

VTI vs. VTES - Dividend Comparison

VTI's dividend yield for the trailing twelve months is around 1.03%, less than VTES's 2.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VTI Vanguard Total Stock Market ETF	1.03%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both VTI and VTES in my portfolio?

VTI and VTES have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTI or VTES?

VTI has higher volatility (4.50%) compared to VTES (0.35%). In terms of maximum drawdown, VTI dropped -55.45% vs VTES's -2.42%.

Which ETF is better, VTI or VTES?

On 3-year performance, VTI leads with 20.60% vs 3.18% for VTES. On fees, VTI is cheaper at 0.03% per year. On volatility, VTES has been the lower-risk option at 0.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTI or VTES?

Over the 3-year period, VTI has performed better with a 20.60% return vs 3.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTI or VTES?

VTI is cheaper with a 0.03% expense ratio, compared with 0.07% for VTES.

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

VTES has the higher dividend yield at 2.75%, compared with 1.03% for VTI.

What is the main difference between VTI and VTES?

VTI is categorized as Large Cap Blend Equities, while VTES is Municipal Bonds. VTI tracks CRSP US Total Market Index, while VTES tracks S&P 0-7 Year National AMT-Free Municipal Bond Index. Their fees differ too: 0.03% for VTI and 0.07% for VTES.

Which has better risk-adjusted returns?

VTES currently has the higher Sharpe Ratio (2.70 vs 1.97), 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.