VWAHX vs. VWSTX

Last updated Jun 4, 2026

VWAHX (Vanguard High-Yield Tax-Exempt Fund Investor Shares) and VWSTX (Vanguard Short-Term Tax-Exempt Fund Investor Shares) are both Municipal Bonds funds from Vanguard. Over the past 10 years, VWAHX returned 3.06%/yr vs 1.95%/yr for VWSTX. A 0.55 correlation means they provide meaningful diversification when combined. Both charge a 0.17% expense ratio.

Performance

VWAHX vs. VWSTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard High-Yield Tax-Exempt Fund Investor Shares (VWAHX) and Vanguard Short-Term Tax-Exempt Fund Investor Shares (VWSTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWAHX achieves a 2.30% return, which is significantly higher than VWSTX's 1.10% return. Over the past 10 years, VWAHX has outperformed VWSTX with an annualized return of 3.06%, while VWSTX has yielded a comparatively lower 1.95% annualized return.

VWAHX

• 1D: 0.19%
• 1M: 1.01%
• YTD: 2.30%
• 6M: 2.65%
• 1Y: 8.78%
• 3Y*: 5.46%
• 5Y*: 1.57%
• 10Y*: 3.06%

VWSTX

• 1D: 0.00%
• 1M: 0.25%
• YTD: 1.10%
• 6M: 1.43%
• 1Y: 3.68%
• 3Y*: 4.13%
• 5Y*: 2.50%
• 10Y*: 1.95%

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

VWAHX vs. VWSTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWAHX Vanguard High-Yield Tax-Exempt Fund Investor Shares	2.30%	4.96%	3.98%	8.39%	-11.76%	3.36%	5.39%	9.48%	1.31%	7.86%
VWSTX Vanguard Short-Term Tax-Exempt Fund Investor Shares	1.10%	4.79%	3.68%	3.87%	-0.81%	0.17%	1.82%	2.50%	1.59%	1.00%

Correlation

The correlation between VWAHX and VWSTX 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 (1Y) Calculated over the trailing 1-year period	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Jan 31, 1979	0.55

The correlation between VWAHX and VWSTX shifts across timeframes, from 0.55 (all time) to 0.73 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VWAHX vs. VWSTX — Risk / Return Rank

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

VWAHX

VWAHX Risk / Return Rank: 75
VWAHX Sharpe Ratio Rank: 84
VWAHX Sortino Ratio Rank: 91
VWAHX Omega Ratio Rank: 93
VWAHX Calmar Ratio Rank: 56
VWAHX Martin Ratio Rank: 52

VWSTX

VWSTX Risk / Return Rank: 96
VWSTX Sharpe Ratio Rank: 95
VWSTX Sortino Ratio Rank: 99
VWSTX Omega Ratio Rank: 99
VWSTX Calmar Ratio Rank: 93
VWSTX Martin Ratio Rank: 96

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.

VWAHX vs. VWSTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High-Yield Tax-Exempt Fund Investor Shares (VWAHX) and Vanguard Short-Term Tax-Exempt Fund Investor Shares (VWSTX). 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.

	VWAHX	VWSTX	Difference
Sharpe ratio: Return per unit of total volatility	2.72	3.38	-0.67
Sortino ratio: Return per unit of downside risk	4.41	8.40	-3.99
Omega ratio: Gain probability vs. loss probability	1.70	2.64	-0.94
Calmar ratio: Return relative to maximum drawdown	2.89	5.35	-2.47
Martin ratio: Return relative to average drawdown	10.50	23.63	-13.13
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VWAHX vs. VWSTX - Sharpe Ratio Comparison

The current VWAHX Sharpe Ratio is 2.72, which is comparable to the VWSTX Sharpe Ratio of 3.38. The chart below compares the historical Sharpe Ratios of VWAHX and VWSTX, 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

	VWAHX	VWSTX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.72	3.38	-0.67
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	2.08	-1.75
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.66	1.76	-1.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.65	2.03	-1.39

Drawdowns

VWAHX vs. VWSTX - Drawdown Comparison

The maximum VWAHX drawdown since its inception was -40.26%, which is greater than VWSTX's maximum drawdown of -3.09%. Use the drawdown chart below to compare losses from any high point for VWAHX and VWSTX.

Drawdown Indicators

	VWAHX	VWSTX	Difference
Max Drawdown Largest peak-to-trough decline	-40.26%	-3.09%	-37.17%
Max Drawdown (1Y) Largest decline over 1 year	-3.05%	-0.69%	-2.36%
Max Drawdown (3Y) Largest decline over 3 years	-7.12%	-1.01%	-6.11%
Max Drawdown (5Y) Largest decline over 5 years	-17.32%	-2.32%	-15.00%
Max Drawdown (10Y) Largest decline over 10 years	-17.32%	-3.08%	-14.24%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-6.93%	-0.32%	-6.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.84%	0.16%	+0.68%

Volatility

VWAHX vs. VWSTX - Volatility Comparison

Vanguard High-Yield Tax-Exempt Fund Investor Shares (VWAHX) has a higher volatility of 1.27% compared to Vanguard Short-Term Tax-Exempt Fund Investor Shares (VWSTX) at 0.38%. This indicates that VWAHX's price experiences larger fluctuations and is considered to be riskier than VWSTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWAHX	VWSTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.27%	0.38%	+0.89%
Volatility (6M) Calculated over the trailing 6-month period	2.40%	0.81%	+1.59%
Volatility (1Y) Calculated over the trailing 1-year period	3.26%	1.09%	+2.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.80%	1.21%	+3.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.64%	1.11%	+3.53%

VWAHX vs. VWSTX - Expense Ratio Comparison

Both VWAHX and VWSTX have an expense ratio of 0.17%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VWAHX vs. VWSTX - Dividend Comparison

VWAHX's dividend yield for the trailing twelve months is around 4.05%, more than VWSTX's 3.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VWAHX Vanguard High-Yield Tax-Exempt Fund Investor Shares	4.05%	4.95%	4.38%	3.53%	3.36%	2.98%	3.31%	3.94%	3.78%	3.68%	3.75%	3.67%
VWSTX Vanguard Short-Term Tax-Exempt Fund Investor Shares	3.04%	3.90%	3.73%	2.42%	1.16%	0.61%	1.17%	1.71%	1.45%	1.06%	0.87%	0.70%

Frequently Asked Questions

Can I hold both VWAHX and VWSTX in my portfolio?

VWAHX and VWSTX 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 is riskier, VWAHX or VWSTX?

VWAHX has higher volatility (1.27%) compared to VWSTX (0.38%). In terms of maximum drawdown, VWAHX dropped -40.26% vs VWSTX's -3.09%.

Which has better risk-adjusted returns?

VWSTX currently has the higher Sharpe Ratio (3.38 vs 2.72), 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.