BND vs. VTEB

Last updated Apr 2, 2026

Compare and contrast key facts about Vanguard Total Bond Market ETF (BND) and Vanguard Tax-Exempt Bond ETF (VTEB).

BND and VTEB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. BND is a passively managed fund by Vanguard that tracks the performance of the Bloomberg U.S. Aggregate Float Adjusted Index. It was launched on Apr 3, 2007. 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 BND 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.

Performance

BND vs. VTEB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Bond Market ETF (BND) and Vanguard Tax-Exempt Bond ETF (VTEB). The values are adjusted to include any dividend payments, if applicable.

BND vs. VTEB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BND Vanguard Total Bond Market ETF	0.09%	7.08%	1.38%	5.65%	-13.11%	-1.86%	7.71%	8.84%	-0.12%	3.57%
VTEB Vanguard Tax-Exempt Bond ETF	0.09%	3.72%	1.31%	6.15%	-7.99%	1.14%	5.19%	7.35%	1.04%	4.87%

Returns By Period

As of year-to-date, both investments have demonstrated similar returns, with BND at 0.09% and VTEB at 0.09%. Over the past 10 years, BND has underperformed VTEB with an annualized return of 1.68%, while VTEB has yielded a comparatively higher 2.09% annualized return.

BND

• 1D: 0.04%
• 1M: -1.30%
• YTD: 0.09%
• 6M: 0.74%
• 1Y: 3.96%
• 3Y*: 3.60%
• 5Y*: 0.25%
• 10Y*: 1.68%

VTEB

• 1D: 0.32%
• 1M: -1.61%
• YTD: 0.09%
• 6M: 1.54%
• 1Y: 3.92%
• 3Y*: 2.78%
• 5Y*: 0.88%
• 10Y*: 2.09%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BND vs. VTEB - Expense Ratio Comparison

BND has a 0.03% expense ratio, which is lower than VTEB's 0.05% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

VTEB

Vanguard Tax-Exempt Bond ETF

BND

Vanguard Total Bond Market ETF

Return for Risk

BND vs. VTEB — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BND

BND Risk / Return Rank: 50
BND Sharpe Ratio Rank: 49
BND Sortino Ratio Rank: 46
BND Omega Ratio Rank: 39
BND Calmar Ratio Rank: 67
BND Martin Ratio Rank: 48

VTEB

VTEB Risk / Return Rank: 48
VTEB Sharpe Ratio Rank: 53
VTEB Sortino Ratio Rank: 43
VTEB Omega Ratio Rank: 59
VTEB Calmar Ratio Rank: 46
VTEB Martin Ratio Rank: 39

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BND vs. VTEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) 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.

	BND	VTEB	Difference
Sharpe ratio Return per unit of total volatility	0.93	0.99	-0.06
Sortino ratio Return per unit of downside risk	1.32	1.25	+0.07
Omega ratio Gain probability vs. loss probability	1.16	1.23	-0.06
Calmar ratio Return relative to maximum drawdown	1.75	1.25	+0.50
Martin ratio Return relative to average drawdown	4.78	3.69	+1.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BND vs. VTEB - Sharpe Ratio Comparison

The current BND Sharpe Ratio is 0.93, which is comparable to the VTEB Sharpe Ratio of 0.99. The chart below compares the historical Sharpe Ratios of BND and VTEB, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	BND	VTEB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.93	0.99	-0.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.04	0.23	-0.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.30	0.40	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.59	0.45	+0.13

Correlation

The correlation between BND and VTEB is 0.68, 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.

Dividends

BND vs. VTEB - Dividend Comparison

BND's dividend yield for the trailing twelve months is around 3.93%, more than VTEB's 3.37% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BND Vanguard Total Bond Market ETF	3.93%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%
VTEB Vanguard Tax-Exempt Bond ETF	3.37%	3.29%	3.14%	2.79%	2.09%	1.64%	1.99%	2.30%	2.25%	1.96%	1.66%	0.58%

Drawdowns

BND vs. VTEB - Drawdown Comparison

The maximum BND drawdown since its inception was -18.58%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for BND and VTEB.

Drawdown Indicators

	BND	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	-18.58%	-17.00%	-1.58%
Max Drawdown (1Y) Largest decline over 1 year	-2.44%	-3.45%	+1.01%
Max Drawdown (5Y) Largest decline over 5 years	-17.91%	-12.64%	-5.27%
Max Drawdown (10Y) Largest decline over 10 years	-18.58%	-17.00%	-1.58%
Current Drawdown Current decline from peak	-2.54%	-1.86%	-0.68%
Average Drawdown Average peak-to-trough decline	-3.07%	-2.35%	-0.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	1.17%	-0.27%

Volatility

BND vs. VTEB - Volatility Comparison

Vanguard Total Bond Market ETF (BND) has a higher volatility of 1.63% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 1.37%. This indicates that BND's price experiences larger fluctuations and is considered to be riskier than VTEB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BND	VTEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.63%	1.37%	+0.26%
Volatility (6M) Calculated over the trailing 6-month period	2.52%	1.87%	+0.65%
Volatility (1Y) Calculated over the trailing 1-year period	4.30%	4.00%	+0.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.00%	3.88%	+2.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.52%	5.25%	+0.27%