AFTEX vs. VTEB
AFTEX (American Funds Tax Exempt Bond Fund) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds. Over the past 10 years, AFTEX returned 2.13%/yr vs 1.97%/yr for VTEB. A 0.68 correlation means they provide meaningful diversification when combined. AFTEX charges 0.50%/yr vs 0.03%/yr for VTEB.
Performance
AFTEX vs. VTEB - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with AFTEX having a 1.66% return and VTEB slightly higher at 1.72%. Over the past 10 years, AFTEX has outperformed VTEB with an annualized return of 2.13%, while VTEB has yielded a comparatively lower 1.97% annualized return.
AFTEX
- 1D
- 0.08%
- 1M
- 1.64%
- YTD
- 1.66%
- 6M
- 2.01%
- 1Y
- 6.67%
- 3Y*
- 4.13%
- 5Y*
- 0.92%
- 10Y*
- 2.13%
VTEB
- 1D
- -0.02%
- 1M
- 1.40%
- YTD
- 1.72%
- 6M
- 1.95%
- 1Y
- 6.76%
- 3Y*
- 3.39%
- 5Y*
- 0.95%
- 10Y*
- 1.97%
AFTEX vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AFTEX American Funds Tax Exempt Bond Fund | 1.66% | 4.88% | 2.28% | 5.96% | -9.68% | 1.87% | 4.73% | 7.42% | 0.78% | 5.83% |
VTEB Vanguard Tax-Exempt Bond ETF | 1.72% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
Correlation
The correlation between AFTEX and VTEB is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.71 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.76 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.75 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.69 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.68 |
The correlation between AFTEX and VTEB has been stable across timeframes, ranging from 0.68 to 0.76 - a consistent structural relationship.
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Return for Risk
AFTEX vs. VTEB — Risk / Return Rank
AFTEX
VTEB
AFTEX vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds Tax Exempt Bond Fund (AFTEX) and Vanguard Tax-Exempt Bond ETF (VTEB). 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.
| AFTEX | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.04 | ||
| Sortino ratioReturn per unit of downside risk | +0.30 | ||
| Omega ratioGain probability vs. loss probability | 1.64 | 1.55 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 2.43 | 2.51 | -0.08 |
| Martin ratioReturn relative to average drawdown | 8.42 | 8.83 | -0.42 |
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Drawdowns
AFTEX vs. VTEB - Drawdown Comparison
The maximum AFTEX drawdown since its inception was -14.55%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for AFTEX and VTEB.
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Drawdown Indicators
| AFTEX | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.55% | -17.00% | +2.45% |
Max Drawdown (1Y)Largest decline over 1 year | -2.76% | -2.71% | -0.05% |
Max Drawdown (3Y)Largest decline over 3 years | -5.21% | -5.53% | +0.32% |
Max Drawdown (5Y)Largest decline over 5 years | -14.55% | -12.64% | -1.91% |
Max Drawdown (10Y)Largest decline over 10 years | -14.55% | -17.00% | +2.45% |
Current DrawdownCurrent decline from peak | -0.34% | -0.26% | -0.08% |
Average DrawdownAverage peak-to-trough decline | -1.66% | -2.32% | +0.66% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.79% | 0.77% | +0.02% |
Volatility
AFTEX vs. VTEB - Volatility Comparison
American Funds Tax Exempt Bond Fund (AFTEX) and Vanguard Tax-Exempt Bond ETF (VTEB) have volatilities of 0.71% and 0.71%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AFTEX | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.71% | 0.71% | 0.00% |
Volatility (6M)Calculated over the trailing 6-month period | 1.99% | 2.06% | -0.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.60% | 2.68% | -0.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.76% | 3.90% | -0.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.79% | 5.26% | -1.47% |
AFTEX vs. VTEB - Expense Ratio Comparison
AFTEX has a 0.50% expense ratio, which is higher than VTEB's 0.03% expense ratio.
Dividends
AFTEX vs. VTEB - Dividend Comparison
AFTEX's dividend yield for the trailing twelve months is around 3.01%, less than VTEB's 3.35% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AFTEX American Funds Tax Exempt Bond Fund | 3.01% | 3.98% | 2.90% | 2.22% | 1.75% | 2.31% | 2.43% | 2.83% | 2.86% | 3.30% | 2.90% | 3.21% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.35% | 3.29% | 3.14% | 2.79% | 2.09% | 1.64% | 1.99% | 2.30% | 2.25% | 1.96% | 1.66% | 0.58% |
Frequently Asked Questions
AFTEX and VTEB have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEB has higher volatility (0.71%) compared to AFTEX (0.71%). In terms of maximum drawdown, AFTEX dropped -14.55% vs VTEB's -17.00%.
AFTEX currently has the higher Sharpe Ratio (2.58 vs 2.53), 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.
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