VWSTX vs. BND
Compare and contrast key facts about Vanguard Short-Term Tax-Exempt Fund Investor Shares (VWSTX) and Vanguard Total Bond Market ETF (BND).
VWSTX is managed by Vanguard. It was launched on Sep 1, 1977. BND is a passively managed fund by Vanguard that tracks the performance of the Bloomberg U.S. Aggregate Float Adjusted Index. It was launched on Apr 3, 2007.
Performance
VWSTX vs. BND - Performance Comparison
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VWSTX vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VWSTX Vanguard Short-Term Tax-Exempt Fund Investor Shares | 0.29% | 4.79% | 3.68% | 3.87% | -0.81% | 0.17% | 1.82% | 2.50% | 1.59% | 1.00% |
BND Vanguard Total Bond Market ETF | 0.09% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Returns By Period
In the year-to-date period, VWSTX achieves a 0.29% return, which is significantly higher than BND's 0.09% return. Over the past 10 years, VWSTX has outperformed BND with an annualized return of 1.88%, while BND has yielded a comparatively lower 1.68% annualized return.
VWSTX
- 1D
- 0.06%
- 1M
- -0.50%
- YTD
- 0.29%
- 6M
- 0.95%
- 1Y
- 3.49%
- 3Y*
- 3.85%
- 5Y*
- 2.36%
- 10Y*
- 1.88%
BND
- 1D
- 0.04%
- 1M
- -1.30%
- YTD
- 0.09%
- 6M
- 0.74%
- 1Y
- 3.96%
- 3Y*
- 3.60%
- 5Y*
- 0.25%
- 10Y*
- 1.68%
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VWSTX vs. BND - Expense Ratio Comparison
VWSTX has a 0.17% expense ratio, which is higher than BND's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Return for Risk
VWSTX vs. BND — Risk / Return Rank
VWSTX
BND
VWSTX vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Tax-Exempt Fund Investor Shares (VWSTX) and Vanguard Total Bond Market ETF (BND). 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.
| VWSTX | BND | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.57 | 0.93 | +1.64 |
Sortino ratioReturn per unit of downside risk | 4.74 | 1.32 | +3.42 |
Omega ratioGain probability vs. loss probability | 2.13 | 1.16 | +0.97 |
Calmar ratioReturn relative to maximum drawdown | 4.12 | 1.75 | +2.37 |
Martin ratioReturn relative to average drawdown | 18.45 | 4.78 | +13.67 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VWSTX | BND | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.57 | 0.93 | +1.64 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 2.00 | 0.04 | +1.95 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.72 | 0.30 | +1.41 |
Sharpe Ratio (All Time)Calculated using the full available price history | 2.03 | 0.59 | +1.44 |
Correlation
The correlation between VWSTX and BND is 0.26, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Dividends
VWSTX vs. BND - Dividend Comparison
VWSTX's dividend yield for the trailing twelve months is around 3.11%, less than BND's 3.93% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VWSTX Vanguard Short-Term Tax-Exempt Fund Investor Shares | 3.11% | 3.90% | 3.73% | 2.42% | 1.16% | 0.61% | 1.17% | 1.71% | 1.45% | 1.06% | 0.87% | 0.70% |
BND Vanguard Total Bond Market ETF | 3.93% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
Drawdowns
VWSTX vs. BND - Drawdown Comparison
The maximum VWSTX drawdown since its inception was -3.09%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VWSTX and BND.
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Drawdown Indicators
| VWSTX | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -3.09% | -18.58% | +15.49% |
Max Drawdown (1Y)Largest decline over 1 year | -1.01% | -2.44% | +1.43% |
Max Drawdown (5Y)Largest decline over 5 years | -2.32% | -17.91% | +15.59% |
Max Drawdown (10Y)Largest decline over 10 years | -3.08% | -18.58% | +15.50% |
Current DrawdownCurrent decline from peak | -0.63% | -2.54% | +1.91% |
Average DrawdownAverage peak-to-trough decline | -0.32% | -3.07% | +2.75% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 0.90% | -0.67% |
Volatility
VWSTX vs. BND - Volatility Comparison
The current volatility for Vanguard Short-Term Tax-Exempt Fund Investor Shares (VWSTX) is 0.28%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.63%. This indicates that VWSTX experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VWSTX | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.28% | 1.63% | -1.35% |
Volatility (6M)Calculated over the trailing 6-month period | 0.75% | 2.52% | -1.77% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.51% | 4.30% | -2.79% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.19% | 6.00% | -4.81% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.10% | 5.52% | -4.42% |