ZTRE vs. VSDB

Last updated Jun 23, 2026

ZTRE (F/M 3-Year Investment Grade Corporate Bond ETF) and VSDB (Vanguard Short Duration Bond ETF Shares) are both Short-Term Bond funds. ZTRE is passively managed, while VSDB is actively managed. Over the past year, ZTRE returned 3.84% vs 4.75% for VSDB. Their correlation of 0.82 suggests significant overlap in exposure. Both charge a 0.15% expense ratio.

Performance

ZTRE vs. VSDB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in F/M 3-Year Investment Grade Corporate Bond ETF (ZTRE) and Vanguard Short Duration Bond ETF Shares (VSDB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZTRE achieves a 0.47% return, which is significantly lower than VSDB's 0.95% return.

ZTRE

• 1D: -0.04%
• 1M: 0.25%
• YTD: 0.47%
• 6M: 0.83%
• 1Y: 3.84%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VSDB

• 1D: -0.11%
• 1M: 0.30%
• YTD: 0.95%
• 6M: 1.15%
• 1Y: 4.75%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ZTRE vs. VSDB - Yearly Performance Comparison

	2026 (YTD)	2025
ZTRE F/M 3-Year Investment Grade Corporate Bond ETF	0.47%	4.49%
VSDB Vanguard Short Duration Bond ETF Shares	0.95%	4.88%

Correlation

The correlation between ZTRE and VSDB is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (All Time) Calculated using the full available price history since Apr 3, 2025	0.82

The correlation between ZTRE and VSDB has been stable across timeframes, ranging from 0.82 to 0.82 - a consistent structural relationship.

Return for Risk

ZTRE vs. VSDB — Risk / Return Rank

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

ZTRE

ZTRE Risk / Return Rank: 64
ZTRE Sharpe Ratio Rank: 64
ZTRE Sortino Ratio Rank: 73
ZTRE Omega Ratio Rank: 69
ZTRE Calmar Ratio Rank: 55
ZTRE Martin Ratio Rank: 61

VSDB

VSDB Risk / Return Rank: 83
VSDB Sharpe Ratio Rank: 88
VSDB Sortino Ratio Rank: 92
VSDB Omega Ratio Rank: 91
VSDB Calmar Ratio Rank: 69
VSDB Martin Ratio Rank: 78

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.

ZTRE vs. VSDB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for F/M 3-Year Investment Grade Corporate Bond ETF (ZTRE) and Vanguard Short Duration Bond ETF Shares (VSDB). 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.

	ZTRE	VSDB	Difference
Sharpe ratio: Return per unit of total volatility	2.03	2.74	-0.70
Sortino ratio: Return per unit of downside risk	3.14	4.25	-1.12
Omega ratio: Gain probability vs. loss probability	1.40	1.56	-0.17
Calmar ratio: Return relative to maximum drawdown	2.66	3.35	-0.70
Martin ratio: Return relative to average drawdown	10.60	14.67	-4.07

ZTRE vs. VSDB - Sharpe Ratio Comparison

The current ZTRE Sharpe Ratio is 2.03, which is comparable to the VSDB Sharpe Ratio of 2.74. The chart below compares the historical Sharpe Ratios of ZTRE and VSDB, 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

ZTRE vs. VSDB - Drawdown Comparison

The maximum ZTRE drawdown since its inception was -1.45%, roughly equal to the maximum VSDB drawdown of -1.42%. Use the drawdown chart below to compare losses from any high point for ZTRE and VSDB.

Drawdown Indicators

	ZTRE	VSDB	Difference
Max Drawdown Largest peak-to-trough decline	-1.45%	-1.42%	-0.03%
Max Drawdown (1Y) Largest decline over 1 year	-1.45%	-1.42%	-0.03%
Current Drawdown Current decline from peak	-0.34%	-0.26%	-0.08%
Average Drawdown Average peak-to-trough decline	-0.20%	-0.19%	-0.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.36%	0.32%	+0.04%

Volatility

ZTRE vs. VSDB - Volatility Comparison

F/M 3-Year Investment Grade Corporate Bond ETF (ZTRE) has a higher volatility of 0.59% compared to Vanguard Short Duration Bond ETF Shares (VSDB) at 0.52%. This indicates that ZTRE's price experiences larger fluctuations and is considered to be riskier than VSDB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZTRE	VSDB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.59%	0.52%	+0.07%
Volatility (6M) Calculated over the trailing 6-month period	1.48%	1.39%	+0.09%
Volatility (1Y) Calculated over the trailing 1-year period	1.90%	1.75%	+0.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.11%	1.90%	+0.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.11%	1.90%	+0.21%

ZTRE vs. VSDB - Expense Ratio Comparison

Both ZTRE and VSDB have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

ZTRE vs. VSDB - Dividend Comparison

ZTRE's dividend yield for the trailing twelve months is around 4.22%, more than VSDB's 4.16% yield.

Position	TTM	2025	2024
VSDB Vanguard Short Duration Bond ETF Shares	4.16%	3.30%	0.00%
ZTRE F/M 3-Year Investment Grade Corporate Bond ETF	4.22%	4.37%	0.39%

Frequently Asked Questions

Can I hold both ZTRE and VSDB in my portfolio?

ZTRE and VSDB have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ZTRE or VSDB?

ZTRE has higher volatility (0.59%) compared to VSDB (0.52%). In terms of maximum drawdown, ZTRE dropped -1.45% vs VSDB's -1.42%.

Which ETF is better, ZTRE or VSDB?

On 1-year performance, VSDB leads with 4.75% vs 3.84% for ZTRE. Both ETFs have the same 0.15% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ZTRE or VSDB?

Over the 1-year period, VSDB has performed better with a 4.75% return vs 3.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ZTRE or VSDB?

ZTRE and VSDB have the same expense ratio: 0.15% per year.

Which ETF pays a higher dividend yield, ZTRE or VSDB?

ZTRE has the higher dividend yield at 4.22%, compared with 4.16% for VSDB.

What is the main difference between ZTRE and VSDB?

They also come from different issuers: F/m and Vanguard.

Which has better risk-adjusted returns?

VSDB currently has the higher Sharpe Ratio (2.74 vs 2.03), 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.