CALI vs. VTEB

Last updated Jun 23, 2026

CALI (iShares Short-Term California Muni Active ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds - CALI tracks the ICE AMT-Free California Municipal Index while VTEB tracks the S&P National AMT-Free Municipal Bond Index. Both are passively managed. Over the past year, CALI returned 2.86% vs 6.76% for VTEB. At a 0.45 correlation, their price movements are largely independent. CALI charges 0.08%/yr vs 0.03%/yr for VTEB.

Performance

CALI vs. VTEB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Short-Term California Muni Active ETF (CALI) and Vanguard Tax-Exempt Bond ETF (VTEB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CALI achieves a 1.03% return, which is significantly lower than VTEB's 1.72% return.

CALI

• 1D: -0.00%
• 1M: 0.41%
• YTD: 1.03%
• 6M: 1.15%
• 1Y: 2.86%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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%

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

CALI vs. VTEB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
CALI iShares Short-Term California Muni Active ETF	1.03%	3.28%	2.84%	1.97%
VTEB Vanguard Tax-Exempt Bond ETF	1.72%	3.72%	1.31%	3.36%

Correlation

The correlation between CALI and VTEB is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (All Time) Calculated using the full available price history since Jul 13, 2023	0.45

Return for Risk

CALI vs. VTEB — Risk / Return Rank

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

CALI

CALI Risk / Return Rank: 93
CALI Sharpe Ratio Rank: 96
CALI Sortino Ratio Rank: 97
CALI Omega Ratio Rank: 97
CALI Calmar Ratio Rank: 83
CALI Martin Ratio Rank: 92

VTEB

VTEB Risk / Return Rank: 73
VTEB Sharpe Ratio Rank: 83
VTEB Sortino Ratio Rank: 87
VTEB Omega Ratio Rank: 90
VTEB Calmar Ratio Rank: 52
VTEB Martin Ratio Rank: 53

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.

CALI vs. VTEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Short-Term California Muni Active ETF (CALI) 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.

	CALI	VTEB	Difference
Sharpe ratio: Return per unit of total volatility	3.83	2.53	+1.30
Sortino ratio: Return per unit of downside risk	5.80	3.75	+2.05
Omega ratio: Gain probability vs. loss probability	1.90	1.55	+0.35
Calmar ratio: Return relative to maximum drawdown	4.29	2.51	+1.78
Martin ratio: Return relative to average drawdown	21.89	8.83	+13.05

CALI vs. VTEB - Sharpe Ratio Comparison

The current CALI Sharpe Ratio is 3.83, which is higher than the VTEB Sharpe Ratio of 2.53. The chart below compares the historical Sharpe Ratios of CALI and VTEB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

CALI vs. VTEB - Drawdown Comparison

The maximum CALI drawdown since its inception was -0.78%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for CALI and VTEB.

Drawdown Indicators

	CALI	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	-0.78%	-17.00%	+16.22%
Max Drawdown (1Y) Largest decline over 1 year	-0.67%	-2.71%	+2.04%
Max Drawdown (3Y) Largest decline over 3 years	—	-5.53%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-12.64%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-17.00%	—
Current Drawdown Current decline from peak	-0.01%	-0.26%	+0.25%
Average Drawdown Average peak-to-trough decline	-0.08%	-2.32%	+2.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.13%	0.77%	-0.64%

Volatility

CALI vs. VTEB - Volatility Comparison

The current volatility for iShares Short-Term California Muni Active ETF (CALI) is 0.19%, while Vanguard Tax-Exempt Bond ETF (VTEB) has a volatility of 0.71%. This indicates that CALI experiences smaller price fluctuations and is considered to be less risky than VTEB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CALI	VTEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.19%	0.71%	-0.52%
Volatility (6M) Calculated over the trailing 6-month period	0.52%	2.06%	-1.54%
Volatility (1Y) Calculated over the trailing 1-year period	0.75%	2.68%	-1.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.10%	3.90%	-2.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.10%	5.26%	-4.16%

CALI vs. VTEB - Expense Ratio Comparison

CALI has a 0.08% expense ratio, which is higher than VTEB's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

CALI vs. VTEB - Dividend Comparison

CALI's dividend yield for the trailing twelve months is around 2.52%, less than VTEB's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CALI iShares Short-Term California Muni Active ETF	2.52%	2.62%	3.14%	1.37%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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

Can I hold both CALI and VTEB in my portfolio?

CALI and VTEB have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CALI or VTEB?

VTEB has higher volatility (0.71%) compared to CALI (0.19%). In terms of maximum drawdown, CALI dropped -0.78% vs VTEB's -17.00%.

Which ETF is better, CALI or VTEB?

On 1-year performance, VTEB leads with 6.76% vs 2.86% for CALI. On fees, VTEB is cheaper at 0.03% per year. On volatility, CALI has been the lower-risk option at 0.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CALI or VTEB?

Over the 1-year period, VTEB has performed better with a 6.76% return vs 2.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CALI or VTEB?

VTEB is cheaper with a 0.03% expense ratio, compared with 0.08% for CALI.

Which ETF pays a higher dividend yield, CALI or VTEB?

VTEB has the higher dividend yield at 3.35%, compared with 2.52% for CALI.

What is the main difference between CALI and VTEB?

CALI tracks ICE AMT-Free California Municipal Index, while VTEB tracks S&P National AMT-Free Municipal Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.08% for CALI and 0.03% for VTEB.

Which has better risk-adjusted returns?

CALI currently has the higher Sharpe Ratio (3.83 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.