VTES vs. VCSH: Which Vanguard Bond ETF Is the Better Fit for Your Portfolio?

The article compares two Vanguard short-term bond ETFs: VTES (tax-exempt municipal bonds) and VCSH (corporate bonds). VCSH offers a lower expense ratio (0.03% vs 0.05%), higher dividend yield (4.4% vs 2.7%), and better 3-year performance ($1,183 vs $1,097 on $1,000 invested). VTES is better for high-tax-bracket investors seeking tax-free income, while VCSH is recommended for tax-sheltered accounts due to its superior yield and returns.