BAB vs. VTEB
Compare and contrast key facts about Invesco Taxable Municipal Bond ETF (BAB) and Vanguard Tax-Exempt Bond ETF (VTEB).
BAB and VTEB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. BAB is a passively managed fund by Invesco that tracks the performance of the BofA Merrill Lynch Build America Bond Index. It was launched on Nov 17, 2009. VTEB is a passively managed fund by Vanguard that tracks the performance of the S&P National AMT-Free Municipal Bond Index. It was launched on Aug 21, 2015. Both BAB and VTEB are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: BAB or VTEB.
Key characteristics
| BAB | VTEB | |
|---|---|---|
| YTD Return | 2.88% | 1.60% |
| 1Y Return | 10.98% | 7.56% |
| 3Y Return (Ann) | -3.65% | -0.17% |
| 5Y Return (Ann) | 0.05% | 1.30% |
| Sharpe Ratio | 1.18 | 1.80 |
| Sortino Ratio | 1.76 | 2.67 |
| Omega Ratio | 1.21 | 1.36 |
| Calmar Ratio | 0.47 | 0.88 |
| Martin Ratio | 4.30 | 7.97 |
| Ulcer Index | 2.20% | 0.90% |
| Daily Std Dev | 7.99% | 3.98% |
| Max Drawdown | -27.80% | -17.00% |
| Current Drawdown | -11.39% | -1.20% |
Correlation
The correlation between BAB and VTEB is 0.63, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
BAB vs. VTEB - Performance Comparison
In the year-to-date period, BAB achieves a 2.88% return, which is significantly higher than VTEB's 1.60% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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BAB vs. VTEB - Expense Ratio Comparison
BAB has a 0.28% expense ratio, which is higher than VTEB's 0.05% expense ratio.
Risk-Adjusted Performance
BAB vs. VTEB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Taxable Municipal Bond ETF (BAB) 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.
Dividends
BAB vs. VTEB - Dividend Comparison
BAB's dividend yield for the trailing twelve months is around 3.84%, more than VTEB's 3.09% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 3.84% | 3.66% | 3.40% | 2.63% | 2.96% | 3.77% | 4.20% | 3.96% | 4.27% | 4.71% | 4.59% | 5.19% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.09% | 2.79% | 2.09% | 1.65% | 1.99% | 2.30% | 2.25% | 1.96% | 1.66% | 0.58% | 0.00% | 0.00% |
Drawdowns
BAB vs. VTEB - Drawdown Comparison
The maximum BAB drawdown since its inception was -27.80%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for BAB and VTEB. For additional features, visit the drawdowns tool.
Volatility
BAB vs. VTEB - Volatility Comparison
Invesco Taxable Municipal Bond ETF (BAB) and Vanguard Tax-Exempt Bond ETF (VTEB) have volatilities of 1.88% and 1.96%, 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.