Core Insights - The comparison between Vanguard Short-Term Treasury ETF (VGSH) and VanEck Short Muni ETF (SMB) highlights differences in bond exposure, yield, assets under management, and trading liquidity [2][3] Cost & Size - VGSH has a lower expense ratio of 0.03% compared to SMB's 0.07% and offers a higher dividend yield of 4.0% versus SMB's 2.6% [4][5] - VGSH has assets under management (AUM) of $30.4 billion, significantly larger than SMB's AUM of $295.4 million [4] Performance & Risk Comparison - Over the past five years, VGSH experienced a maximum drawdown of -5.69%, while SMB had a larger drawdown of -7.42% [6] - The growth of $1,000 over five years shows VGSH at $953 and SMB at $958, indicating slight outperformance by SMB [6] Underlying Holdings - SMB invests in 334 tax-exempt, primarily investment-grade municipal bonds, while VGSH holds 93 U.S. Treasury securities, providing pure government-backed exposure [7] - Both funds have a 100% allocation to cash and equivalents, but differ in credit quality and taxation treatment [7] Implications for Investors - VGSH's lower expense ratio and higher yield make it attractive for income-focused investors, while SMB's tax-exempt municipal bonds may appeal to those seeking tax advantages [10][11] - VGSH offers stability through U.S. Treasury bonds, while SMB provides exposure to municipal bonds that fund infrastructure projects [11]