VWSTX vs. VFSIX
VWSTX (Vanguard Short-Term Tax-Exempt Fund Investor Shares) and VFSIX (Vanguard Short-Term Investment-Grade Fund Institutional Shares) are both mutual funds - VWSTX is a Municipal Bonds fund managed by Vanguard, while VFSIX is a Total Bond Market fund managed by Vanguard. Over the past 10 years, VWSTX returned 1.95%/yr vs 2.63%/yr for VFSIX. At a 0.39 correlation, their price movements are largely independent. VWSTX charges 0.17%/yr vs 0.07%/yr for VFSIX.
Performance
VWSTX vs. VFSIX - Performance Comparison
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Returns By Period
In the year-to-date period, VWSTX achieves a 1.10% return, which is significantly higher than VFSIX's 0.83% return. Over the past 10 years, VWSTX has underperformed VFSIX with an annualized return of 1.95%, while VFSIX has yielded a comparatively higher 2.63% annualized return.
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%
VFSIX
- 1D
- 0.00%
- 1M
- 0.31%
- YTD
- 0.83%
- 6M
- 1.12%
- 1Y
- 4.82%
- 3Y*
- 5.55%
- 5Y*
- 2.37%
- 10Y*
- 2.63%
VWSTX vs. VFSIX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
VFSIX Vanguard Short-Term Investment-Grade Fund Institutional Shares | 0.83% | 6.89% | 5.12% | 5.88% | -5.72% | -0.59% | 5.28% | 5.88% | 1.00% | 2.15% |
Correlation
The correlation between VWSTX and VFSIX is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.49 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.50 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.44 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.41 |
Correlation (All Time) Calculated using the full available price history since Oct 1, 1997 | 0.39 |
The correlation between VWSTX and VFSIX shifts across timeframes, from 0.39 (all time) to 0.50 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VWSTX vs. VFSIX — Risk / Return Rank
VWSTX
VFSIX
VWSTX vs. VFSIX - 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 Short-Term Investment-Grade Fund Institutional Shares (VFSIX). 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 | VFSIX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.30 | ||
| Sortino ratioReturn per unit of downside risk | +4.69 | ||
| Omega ratioGain probability vs. loss probability | 2.64 | 1.47 | +1.17 |
| Calmar ratioReturn relative to maximum drawdown | 5.35 | 2.84 | +2.51 |
| Martin ratioReturn relative to average drawdown | 23.63 | 11.24 | +12.39 |
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 | VFSIX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.38 | 2.08 | +1.30 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 2.08 | 0.80 | +1.28 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.76 | 1.06 | +0.70 |
Sharpe Ratio (All Time)Calculated using the full available price history | 2.03 | 1.53 | +0.50 |
Drawdowns
VWSTX vs. VFSIX - Drawdown Comparison
The maximum VWSTX drawdown since its inception was -3.09%, smaller than the maximum VFSIX drawdown of -9.21%. Use the drawdown chart below to compare losses from any high point for VWSTX and VFSIX.
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Drawdown Indicators
| VWSTX | VFSIX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -3.09% | -9.21% | +6.12% |
Max Drawdown (1Y)Largest decline over 1 year | -0.69% | -1.71% | +1.02% |
Max Drawdown (3Y)Largest decline over 3 years | -1.01% | -1.71% | +0.70% |
Max Drawdown (5Y)Largest decline over 5 years | -2.32% | -9.21% | +6.89% |
Max Drawdown (10Y)Largest decline over 10 years | -3.08% | -9.21% | +6.13% |
Current DrawdownCurrent decline from peak | 0.00% | -0.23% | +0.23% |
Average DrawdownAverage peak-to-trough decline | -0.32% | -0.79% | +0.47% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.16% | 0.43% | -0.27% |
Volatility
VWSTX vs. VFSIX - Volatility Comparison
The current volatility for Vanguard Short-Term Tax-Exempt Fund Investor Shares (VWSTX) is 0.38%, while Vanguard Short-Term Investment-Grade Fund Institutional Shares (VFSIX) has a volatility of 0.75%. This indicates that VWSTX experiences smaller price fluctuations and is considered to be less risky than VFSIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VWSTX | VFSIX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.38% | 0.75% | -0.37% |
Volatility (6M)Calculated over the trailing 6-month period | 0.81% | 1.67% | -0.86% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.09% | 2.33% | -1.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.21% | 2.99% | -1.78% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.11% | 2.49% | -1.38% |
VWSTX vs. VFSIX - Expense Ratio Comparison
VWSTX has a 0.17% expense ratio, which is higher than VFSIX's 0.07% 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%.
Dividends
VWSTX vs. VFSIX - Dividend Comparison
VWSTX's dividend yield for the trailing twelve months is around 3.04%, less than VFSIX's 4.74% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFSIX Vanguard Short-Term Investment-Grade Fund Institutional Shares | 4.74% | 4.61% | 4.19% | 2.88% | 2.06% | 1.81% | 2.35% | 2.95% | 2.80% | 2.13% | 2.17% | 2.12% |
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
VWSTX and VFSIX have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VFSIX has higher volatility (0.75%) compared to VWSTX (0.38%). In terms of maximum drawdown, VWSTX dropped -3.09% vs VFSIX's -9.21%.
VWSTX currently has the higher Sharpe Ratio (3.38 vs 2.08), 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.
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