MMSD vs VTES

MMSDCNYLI MacKay Muni Short Duration ETF

VTESAVanguard Short-Term Tax-Exempt Bond ETF

In short

MMSD New York Life's muni desk in ETF form, aimed at the short end of the tax-exempt bond market. It undercuts the typical muni ETF on fee, but it opened in 2025 and is still building its record.

VTES Vanguard's muni ETF on a short leash: an AMT-free tax-exempt index, but capped at seven years to trim interest-rate sensitivity. Five basis points, roughly 2,700 bonds, income paid monthly.

Stated mandate

MMSD The Fund seeks current income that is exempt from regular federal income tax.

VTES The Fund seeks to track an index representing investment-grade U.S. municipal bonds with remaining maturities from one month through seven years.

Why people hold it

• MMSD Costs 0.25% a year against a 0.30% median for muni bond ETFs. On tax-free income, the fee you skip is income you keep.
• The mandate targets current income exempt from regular federal income tax, and the fund distributes monthly.
• Short duration by design. Shorter bonds move less when rates jump, which is the whole point of the sleeve.
• Holds roughly 150 municipal bonds, so no single issuer carries the portfolio.

• VTES Costs 0.05% a year, a fraction of what the typical muni-bond fund in its category charges. One of the cheapest ways into tax-exempt bonds.
• Maturities run one month to seven years, so the portfolio moves less on rate swings than long-dated muni funds. Short duration is the whole point here.vanguard.com
• The index is AMT-free national investment-grade munis, so interest is federally tax-exempt and not caught by the alternative minimum tax.vanguard.com
• Roughly 2,700 bonds via index sampling, run by Vanguard's fixed income group, with distributions paid monthly. It tracks its benchmark closely.vanguard.com

Worth knowing

• MMSD Thinly traded. Spreads can be wider than the muni heavyweights, so limit orders earn their keep here.
• Launched in 2025 with a modest asset base, so there is little history to judge it by.
• Broad index rivals VTEB and MUB charge 0.03% and 0.05%. This is a pricier, narrower slice of the muni market, and it sits in the lower half of its peer group.

• VTES Short maturities cut both ways. Vanguard's own materials describe moderate current income, the trade-off for less rate sensitivity than longer muni portfolios.vanguard.com
• It's a national fund, so it isn't structured to shelter state income tax the way single-state muni ETFs such as NYF are.
• Launched in 2023, it has a shorter live record than muni ETFs that have been trading for over a decade, including its broader sibling VTEB.

Full MMSD profile⁠

Full VTES profile⁠