Right. So, we’re talking about safety, aren’t we? The illusion of it, at least. Vanguard’s Short-Term Treasury ETF (VGSH +0.05%) and VanEck’s Short Muni ETF (SMB +0.11%). Both trying to lull you into a false sense of security with… short-term bonds. Honestly, it’s a bit like choosing between a slightly leaky lifeboat and one with questionable plumbing. They’re both still, you know, boats. The differences, though? They matter. Especially when you’re trying to squeeze a return out of a world actively trying to avoid giving you one.
Both funds are aiming for that sweet spot of ‘not-too-risky’ and ‘maybe-a-little-income’. Which, let’s be real, is the financial equivalent of hoping for a mild headache. It’s not ideal, but you’ll take it over a migraine. I’m going to lay out what I see, because frankly, someone needs to be honest about these things. And I’m feeling particularly… direct today.
Snapshot (Cost & Size – Because Everything Has a Price)
| Metric | VGSH | SMB |
|---|---|---|
| Issuer | Vanguard | VanEck |
| Expense ratio | 0.03% | 0.07% |
| 1-yr return (as of 2026-01-22) | 0.8% | 1.5% |
| Dividend yield | 4.0% | 2.6% |
| Beta | 0.26 | 0.36 |
| AUM | $30.4 billion | $295.4 million |
See that expense ratio? VGSH is practically giving money away. 0.03%. It’s like they’re begging you to give them your cash. SMB is… less generous. And that yield difference? 4.0% versus 2.6%. Don’t let the tax stuff blind you. That’s real money. I’m a value investor; I notice these things. I live for these things.
Performance & Risk Comparison (Or, How Much Could You Lose?)
| Metric | VGSH | SMB |
|---|---|---|
| Max drawdown (5 y) | -5.69% | -7.42% |
| Growth of $1,000 over 5 years | $953 | $958 |
What’s Inside (The Fine Print, Because There Always Is)
SMB is all about municipal bonds – basically IOUs from states and cities. Good for infrastructure, apparently. Schools, roads… potholes. VGSH? Pure, unadulterated U.S. Treasury bonds. Backed by the full faith and credit of the government. Which, let’s be honest, is a phrase that inspires either confidence or terror, depending on the day. Both funds are heavily weighted towards cash equivalents, which is… safe. Predictably, boringly safe. The real difference is who’s signing the IOU, and how much tax you’ll have to pay on it.
For more ETF guidance, they have a guide here. Honestly, I’d rather spend my time analyzing the numbers myself. But, you do you.
What This Means For Investors (Or, My Slightly Jaded Opinion)
Both of these ETFs are designed for people who don’t like surprises. Which, fine. I get it. But you’re lending money to very different entities. VGSH is the government. SMB is… well, it’s complicated. States, cities, various authorities. And that tax situation? Huge. If you’re in a high tax bracket, SMB could actually deliver a better return after taxes. It’s a bit like finding a twenty in an old coat. Unexpected, but welcome.
VGSH is the default choice if you want absolute safety and liquidity. It’s the financial equivalent of wearing sensible shoes. SMB is a bit more… adventurous. It requires you to do some research, understand your tax situation, and accept a slightly higher level of risk. But if you’re willing to do the work, it could pay off. And frankly, I’m always up for a little calculated risk. It makes life interesting. It’s what keeps me from, you know, completely losing it.
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2026-01-25 20:53