VWSTX vs. VWSUX

Last updated Jun 3, 2026

VWSTX (Vanguard Short-Term Tax-Exempt Fund Investor Shares) and VWSUX (Vanguard Short-Term Tax-Exempt Fund Admiral Shares) are both Municipal Bonds funds from Vanguard. Over the past 10 years, VWSTX returned 1.95%/yr vs 2.01%/yr for VWSUX. With a 0.99 correlation, they move nearly in lockstep. VWSTX charges 0.17%/yr vs 0.09%/yr for VWSUX.

Performance

VWSTX vs. VWSUX - 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 Vanguard Short-Term Tax-Exempt Fund Admiral Shares (VWSUX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VWSTX having a 1.10% return and VWSUX slightly higher at 1.14%. Both investments have delivered pretty close results over the past 10 years, with VWSTX having a 1.95% annualized return and VWSUX not far ahead at 2.01%.

VWSTX

• 1D: 0.00%
• 1M: 0.25%
• YTD: 1.10%
• 6M: 1.50%
• 1Y: 3.68%
• 3Y*: 4.13%
• 5Y*: 2.49%
• 10Y*: 1.95%

VWSUX

• 1D: 0.00%
• 1M: 0.25%
• YTD: 1.14%
• 6M: 1.47%
• 1Y: 3.76%
• 3Y*: 4.14%
• 5Y*: 2.54%
• 10Y*: 2.01%

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

VWSTX vs. VWSUX - 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%
VWSUX Vanguard Short-Term Tax-Exempt Fund Admiral Shares	1.14%	4.90%	3.77%	3.70%	-0.73%	0.19%	1.91%	2.59%	1.67%	1.10%

Correlation

The correlation between VWSTX and VWSUX is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Feb 13, 2001	0.99

The correlation between VWSTX and VWSUX has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

Return for Risk

VWSTX vs. VWSUX — 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: 96
VWSTX Sortino Ratio Rank: 99
VWSTX Omega Ratio Rank: 99
VWSTX Calmar Ratio Rank: 95
VWSTX Martin Ratio Rank: 97

VWSUX

VWSUX Risk / Return Rank: 97
VWSUX Sharpe Ratio Rank: 95
VWSUX Sortino Ratio Rank: 99
VWSUX Omega Ratio Rank: 99
VWSUX Calmar Ratio Rank: 94
VWSUX 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.

VWSTX vs. VWSUX - 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 Tax-Exempt Fund Admiral Shares (VWSUX). 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	VWSUX	Difference
Sharpe ratio Return per unit of total volatility	3.38	3.40	-0.02
Sortino ratio Return per unit of downside risk	8.40	8.59	-0.19
Omega ratio Gain probability vs. loss probability	2.64	2.68	-0.04
Calmar ratio Return relative to maximum drawdown	5.72	5.47	+0.25
Martin ratio Return relative to average drawdown	25.32	24.46	+0.86
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VWSTX vs. VWSUX - Sharpe Ratio Comparison

The current VWSTX Sharpe Ratio is 3.38, which is comparable to the VWSUX Sharpe Ratio of 3.40. The chart below compares the historical Sharpe Ratios of VWSTX and VWSUX, 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

	VWSTX	VWSUX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.38	3.40	-0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	2.07	2.09	-0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.76	1.79	-0.03
Sharpe Ratio (All Time) Calculated using the full available price history	2.03	2.05	-0.02

Drawdowns

VWSTX vs. VWSUX - Drawdown Comparison

The maximum VWSTX drawdown since its inception was -3.09%, roughly equal to the maximum VWSUX drawdown of -3.08%. Use the drawdown chart below to compare losses from any high point for VWSTX and VWSUX.

Drawdown Indicators

	VWSTX	VWSUX	Difference
Max Drawdown Largest peak-to-trough decline	-3.09%	-3.08%	-0.01%
Max Drawdown (1Y) Largest decline over 1 year	-0.69%	-0.69%	0.00%
Max Drawdown (3Y) Largest decline over 3 years	-1.01%	-1.01%	0.00%
Max Drawdown (5Y) Largest decline over 5 years	-2.32%	-2.23%	-0.09%
Max Drawdown (10Y) Largest decline over 10 years	-3.08%	-3.08%	0.00%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.32%	-0.15%	-0.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.16%	0.15%	+0.01%

Volatility

VWSTX vs. VWSUX - Volatility Comparison

Vanguard Short-Term Tax-Exempt Fund Investor Shares (VWSTX) and Vanguard Short-Term Tax-Exempt Fund Admiral Shares (VWSUX) have volatilities of 0.38% and 0.38%, 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	VWSUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.38%	0.38%	0.00%
Volatility (6M) Calculated over the trailing 6-month period	0.85%	0.83%	+0.02%
Volatility (1Y) Calculated over the trailing 1-year period	1.09%	1.11%	-0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.21%	1.23%	-0.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.11%	1.12%	-0.01%

VWSTX vs. VWSUX - Expense Ratio Comparison

VWSTX has a 0.17% expense ratio, which is higher than VWSUX's 0.09% 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. VWSUX - Dividend Comparison

VWSTX's dividend yield for the trailing twelve months is around 3.04%, less than VWSUX's 3.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VWSUX Vanguard Short-Term Tax-Exempt Fund Admiral Shares	3.12%	4.00%	3.82%	2.27%	1.24%	0.63%	1.26%	1.79%	1.53%	1.16%	0.97%	0.78%

Frequently Asked Questions

Can I hold both VWSTX and VWSUX in my portfolio?

With a correlation of 1.00, VWSTX and VWSUX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VWSTX or VWSUX?

VWSUX has higher volatility (0.38%) compared to VWSTX (0.38%). In terms of maximum drawdown, VWSTX dropped -3.09% vs VWSUX's -3.08%.

Which has better risk-adjusted returns?

VWSUX currently has the higher Sharpe Ratio (3.40 vs 3.38), 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.