VWSUX vs. VTES

Last updated Aug 6, 2026

VWSUX (Vanguard Ultra-Short-Term Tax-Exempt Fund Admiral Shares) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds from Vanguard. VWSUX is actively managed, while VTES is passively managed. Over the past 3 years, VWSUX returned 4.03%/yr vs 3.12%/yr for VTES. Their 0.57 correlation means they have sometimes moved together and sometimes differently. VWSUX charges 0.09%/yr vs 0.07%/yr for VTES.

Performance

VWSUX vs. VTES - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Ultra-Short-Term Tax-Exempt Fund Admiral Shares (VWSUX) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWSUX achieves a 1.21% return, which is significantly higher than VTES's 0.68% return.

VWSUX

• 1D: 0.06%
• 1M: -0.25%
• 6M: 0.65%
• YTD: 1.21%
• 1Y: 2.63%
• 3Y*: 4.03%
• 5Y*: 2.52%
• 10Y*: 1.97%
• ALL TIME*: 1.91%

VTES

• 1D: 0.08%
• 1M: -0.30%
• 6M: -0.15%
• YTD: 0.68%
• 1Y: 1.98%
• 3Y*: 3.12%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 2.94%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VTES Vanguard Short-Term Tax-Exempt Bond ETF	$19.72M	$19.48M	$17.64M
VWSUX Vanguard Ultra-Short-Term Tax-Exempt Fund Admiral Shares	$0.00	$0.00	$0.00

VWSUX vs. VTES - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VWSUX Vanguard Ultra-Short-Term Tax-Exempt Fund Admiral Shares	1.21%	4.90%	3.77%	3.32%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	0.68%	4.19%	1.85%	3.32%

Correlation

The correlation between VWSUX and VTES is 0.54, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.54
Correlation (3Y) Balances recent behavior with more history.	0.57
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023	0.57

The correlation between VWSUX and VTES has been stable across timeframes, ranging from 0.54 to 0.57 - a consistent structural relationship.

Return for Risk

VWSUX vs. VTES — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VWSUX

VWSUX Risk / Return Rank: 95
VWSUX Sharpe Ratio Rank: 92
VWSUX Sortino Ratio Rank: 98
VWSUX Omega Ratio Rank: 98
VWSUX Calmar Ratio Rank: 91
VWSUX Martin Ratio Rank: 94

VTES

VTES Risk / Return Rank: 49
VTES Sharpe Ratio Rank: 57
VTES Sortino Ratio Rank: 53
VTES Omega Ratio Rank: 67
VTES Calmar Ratio Rank: 35
VTES Martin Ratio Rank: 33

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VWSUX vs. VTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Ultra-Short-Term Tax-Exempt Fund Admiral Shares (VWSUX) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES). 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.

	VWSUX	VTES	Difference
Sharpe ratio: Return per unit of total volatility	2.48	1.56	+0.92
Sortino ratio: Return per unit of downside risk	5.53	2.11	+3.41
Omega ratio: Gain probability vs. loss probability	1.94	1.32	+0.62
Calmar ratio: Return relative to maximum drawdown	3.93	1.36	+2.57
Martin ratio: Return relative to average drawdown	16.13	3.57	+12.56

VWSUX vs. VTES - Sharpe Ratio Comparison

The current VWSUX Sharpe Ratio is 2.48, which is higher than the VTES Sharpe Ratio of 1.56. The chart below compares the historical Sharpe Ratios of VWSUX and VTES, 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

VWSUX vs. VTES - Drawdown Comparison

The maximum VWSUX drawdown since its inception was -3.08%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for VWSUX and VTES.

Drawdown Indicators

	VWSUX	VTES	Difference
Max Drawdown Largest peak-to-trough decline	-3.08%	-2.42%	-0.66%
Max Drawdown (1Y) Largest decline over 1 year	-0.69%	-1.47%	+0.78%
Max Drawdown (3Y) Largest decline over 3 years	-1.01%	-1.59%	+0.58%
Max Drawdown (5Y) Largest decline over 5 years	-2.17%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-3.08%	—	—
Current Drawdown Current decline from peak	-0.25%	-0.59%	+0.34%
Average Drawdown Average peak-to-trough decline	-0.15%	-0.50%	+0.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.17%	0.56%	-0.39%

Volatility

VWSUX vs. VTES - Volatility Comparison

The current volatility for Vanguard Ultra-Short-Term Tax-Exempt Fund Admiral Shares (VWSUX) is 0.22%, while Vanguard Short-Term Tax-Exempt Bond ETF (VTES) has a volatility of 0.49%. This indicates that VWSUX experiences smaller price fluctuations and is considered to be less risky than VTES based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWSUX	VTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.22%	0.49%	-0.27%
Volatility (6M) Calculated over the trailing 6-month period	0.82%	1.05%	-0.23%
Volatility (1Y) Calculated over the trailing 1-year period	1.09%	1.27%	-0.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.24%	1.70%	-0.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.13%	1.70%	-0.57%

VWSUX vs. VTES - Expense Ratio Comparison

VWSUX has a 0.09% expense ratio, which is higher than VTES'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

VWSUX vs. VTES - Dividend Comparison

VWSUX's dividend yield for the trailing twelve months is around 2.86%, more than VTES's 2.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTES Vanguard Short-Term Tax-Exempt Bond ETF	2.74%	2.77%	2.99%	2.03%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VWSUX Vanguard Ultra-Short-Term Tax-Exempt Fund Admiral Shares	2.86%	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 VWSUX and VTES in my portfolio?

VWSUX and VTES have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VWSUX or VTES?

VTES has higher volatility (0.49%) compared to VWSUX (0.22%). In terms of maximum drawdown, VWSUX dropped -3.08% vs VTES's -2.42%.

Which has better risk-adjusted returns?

VWSUX currently has the higher Sharpe Ratio (2.48 vs 1.56), 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.