VWSTX vs. DCARX

Last updated Jul 14, 2026

VWSTX (Vanguard Short-Term Tax-Exempt Fund Investor Shares) and DCARX (DFA California Municipal Real Return Portfolio) are both Municipal Bonds funds. Over the past 5 years, VWSTX returned 2.55%/yr vs 2.48%/yr for DCARX. At a 0.23 correlation, their price movements are largely independent. VWSTX charges 0.17%/yr vs 0.26%/yr for DCARX.

Performance

VWSTX vs. DCARX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Tax-Exempt Fund Investor Shares (VWSTX) and DFA California Municipal Real Return Portfolio (DCARX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWSTX achieves a 1.36% return, which is significantly lower than DCARX's 2.04% return.

VWSTX

• 1D: -0.06%
• 1M: 0.25%
• 6M: 1.23%
• YTD: 1.36%
• 1Y: 3.27%
• 3Y*: 4.11%
• 5Y*: 2.55%
• 10Y*: 1.95%

DCARX

• 1D: 0.00%
• 1M: 0.00%
• 6M: 1.75%
• YTD: 2.04%
• 1Y: 2.79%
• 3Y*: 3.19%
• 5Y*: 2.48%
• 10Y*: —

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

VWSTX vs. DCARX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWSTX Vanguard Short-Term Tax-Exempt Fund Investor Shares	1.36%	4.79%	3.68%	3.87%	-0.81%	0.17%	1.82%	2.50%	1.59%	0.13%
DCARX DFA California Municipal Real Return Portfolio	2.04%	2.64%	3.16%	2.63%	-1.06%	6.21%	2.35%	5.08%	-0.46%	1.16%

Correlation

The correlation between VWSTX and DCARX is 0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.04
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (5Y) Calculated over the trailing 5-year period	0.24
Correlation (All Time) Calculated using the full available price history since Nov 29, 2017	0.23

The correlation between VWSTX and DCARX shifts across timeframes, from 0.04 (1 year) to 0.24 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VWSTX vs. DCARX — Risk / Return Rank

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

VWSTX

VWSTX Risk / Return Rank: 97
VWSTX Sharpe Ratio Rank: 97
VWSTX Sortino Ratio Rank: 99
VWSTX Omega Ratio Rank: 98
VWSTX Calmar Ratio Rank: 96
VWSTX Martin Ratio Rank: 97

DCARX

DCARX Risk / Return Rank: 95
DCARX Sharpe Ratio Rank: 94
DCARX Sortino Ratio Rank: 95
DCARX Omega Ratio Rank: 96
DCARX Calmar Ratio Rank: 96
DCARX Martin Ratio Rank: 92

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.

VWSTX vs. DCARX - 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 DFA California Municipal Real Return Portfolio (DCARX). 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.

	VWSTX	DCARX	Difference
Sharpe ratio: Return per unit of total volatility	3.00	2.65	+0.35
Sortino ratio: Return per unit of downside risk	7.19	4.32	+2.87
Omega ratio: Gain probability vs. loss probability	2.31	1.71	+0.60
Calmar ratio: Return relative to maximum drawdown	4.76	5.01	-0.25
Martin ratio: Return relative to average drawdown	20.97	14.56	+6.40

VWSTX vs. DCARX - Sharpe Ratio Comparison

The current VWSTX Sharpe Ratio is 3.00, which is comparable to the DCARX Sharpe Ratio of 2.65. The chart below compares the historical Sharpe Ratios of VWSTX and DCARX, 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

VWSTX vs. DCARX - Drawdown Comparison

The maximum VWSTX drawdown since its inception was -3.09%, smaller than the maximum DCARX drawdown of -12.27%. Use the drawdown chart below to compare losses from any high point for VWSTX and DCARX.

Drawdown Indicators

	VWSTX	DCARX	Difference
Max Drawdown Largest peak-to-trough decline	-3.09%	-12.27%	+9.18%
Max Drawdown (1Y) Largest decline over 1 year	-0.69%	-0.56%	-0.13%
Max Drawdown (3Y) Largest decline over 3 years	-1.01%	-1.39%	+0.38%
Max Drawdown (5Y) Largest decline over 5 years	-2.32%	-4.79%	+2.47%
Max Drawdown (10Y) Largest decline over 10 years	-3.08%	—	—
Current Drawdown Current decline from peak	-0.06%	-0.18%	+0.12%
Average Drawdown Average peak-to-trough decline	-0.32%	-0.74%	+0.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.16%	0.19%	-0.03%

Volatility

VWSTX vs. DCARX - Volatility Comparison

Vanguard Short-Term Tax-Exempt Fund Investor Shares (VWSTX) and DFA California Municipal Real Return Portfolio (DCARX) have volatilities of 0.29% and 0.30%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWSTX	DCARX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.29%	0.30%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	0.81%	0.90%	-0.09%
Volatility (1Y) Calculated over the trailing 1-year period	1.10%	1.06%	+0.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.22%	2.24%	-1.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.12%	2.89%	-1.77%

VWSTX vs. DCARX - Expense Ratio Comparison

VWSTX has a 0.17% expense ratio, which is lower than DCARX's 0.26% 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

VWSTX vs. DCARX - Dividend Comparison

VWSTX's dividend yield for the trailing twelve months is around 3.03%, less than DCARX's 3.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DCARX DFA California Municipal Real Return Portfolio	3.22%	3.11%	3.52%	1.84%	0.90%	0.78%	1.12%	1.43%	1.27%	0.09%	0.00%	0.00%
VWSTX Vanguard Short-Term Tax-Exempt Fund Investor Shares	3.03%	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 VWSTX and DCARX in my portfolio?

VWSTX and DCARX have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VWSTX or DCARX?

DCARX has higher volatility (0.30%) compared to VWSTX (0.29%). In terms of maximum drawdown, VWSTX dropped -3.09% vs DCARX's -12.27%.

Which has better risk-adjusted returns?

VWSTX currently has the higher Sharpe Ratio (3.00 vs 2.65), 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.