CALI vs. VTEC

Last updated Jun 23, 2026

CALI (iShares Short-Term California Muni Active ETF) and VTEC (Vanguard California Tax-Exempt Bond ETF) are both Municipal Bonds funds - CALI tracks the ICE AMT-Free California Municipal Index while VTEC tracks the S&P California AMT-Free Municipal Bond Index. Both are passively managed. Over the past year, CALI returned 2.86% vs 6.41% for VTEC. At a 0.40 correlation, their price movements are largely independent. Both charge a 0.08% expense ratio.

Performance

CALI vs. VTEC - 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 California Tax-Exempt Bond ETF (VTEC). 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 VTEC's 1.31% return.

CALI

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

VTEC

• 1D: 0.04%
• 1M: 1.47%
• YTD: 1.31%
• 6M: 1.56%
• 1Y: 6.41%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

CALI vs. VTEC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
CALI iShares Short-Term California Muni Active ETF	1.03%	3.28%	2.88%
VTEC Vanguard California Tax-Exempt Bond ETF	1.31%	3.98%	1.48%

Correlation

The correlation between CALI and VTEC is 0.51, 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	0.51
Correlation (All Time) Calculated using the full available price history since Jan 30, 2024	0.40

The correlation between CALI and VTEC shifts across timeframes, from 0.40 (all time) to 0.51 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

CALI vs. VTEC — 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

VTEC

VTEC Risk / Return Rank: 67
VTEC Sharpe Ratio Rank: 75
VTEC Sortino Ratio Rank: 81
VTEC Omega Ratio Rank: 86
VTEC Calmar Ratio Rank: 47
VTEC Martin Ratio Rank: 45

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. VTEC - 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 California Tax-Exempt Bond ETF (VTEC). 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	VTEC	Difference
Sharpe ratio: Return per unit of total volatility	3.83	2.32	+1.51
Sortino ratio: Return per unit of downside risk	5.80	3.43	+2.37
Omega ratio: Gain probability vs. loss probability	1.90	1.51	+0.40
Calmar ratio: Return relative to maximum drawdown	4.29	2.26	+2.03
Martin ratio: Return relative to average drawdown	21.89	7.37	+14.52

CALI vs. VTEC - Sharpe Ratio Comparison

The current CALI Sharpe Ratio is 3.83, which is higher than the VTEC Sharpe Ratio of 2.32. The chart below compares the historical Sharpe Ratios of CALI and VTEC, 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. VTEC - Drawdown Comparison

The maximum CALI drawdown since its inception was -0.78%, smaller than the maximum VTEC drawdown of -4.50%. Use the drawdown chart below to compare losses from any high point for CALI and VTEC.

Drawdown Indicators

	CALI	VTEC	Difference
Max Drawdown Largest peak-to-trough decline	-0.78%	-4.50%	+3.72%
Max Drawdown (1Y) Largest decline over 1 year	-0.67%	-2.85%	+2.18%
Current Drawdown Current decline from peak	-0.01%	-0.50%	+0.49%
Average Drawdown Average peak-to-trough decline	-0.08%	-1.11%	+1.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.13%	0.87%	-0.74%

Volatility

CALI vs. VTEC - Volatility Comparison

The current volatility for iShares Short-Term California Muni Active ETF (CALI) is 0.19%, while Vanguard California Tax-Exempt Bond ETF (VTEC) has a volatility of 0.61%. This indicates that CALI experiences smaller price fluctuations and is considered to be less risky than VTEC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CALI	VTEC	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.19%	0.61%	-0.42%
Volatility (6M) Calculated over the trailing 6-month period	0.52%	1.90%	-1.38%
Volatility (1Y) Calculated over the trailing 1-year period	0.75%	2.78%	-2.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.10%	3.72%	-2.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.10%	3.72%	-2.62%

CALI vs. VTEC - Expense Ratio Comparison

Both CALI and VTEC have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

CALI vs. VTEC - Dividend Comparison

CALI's dividend yield for the trailing twelve months is around 2.52%, less than VTEC's 3.15% yield.

Position	TTM	2025	2024	2023
CALI iShares Short-Term California Muni Active ETF	2.52%	2.62%	3.14%	1.37%
VTEC Vanguard California Tax-Exempt Bond ETF	3.15%	3.13%	2.54%	0.00%

Frequently Asked Questions

Can I hold both CALI and VTEC in my portfolio?

CALI and VTEC have a correlation of 0.51, 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 VTEC?

VTEC has higher volatility (0.61%) compared to CALI (0.19%). In terms of maximum drawdown, CALI dropped -0.78% vs VTEC's -4.50%.

Which ETF is better, CALI or VTEC?

On 1-year performance, VTEC leads with 6.41% vs 2.86% for CALI. Both ETFs have the same 0.08% expense ratio. 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 VTEC?

Over the 1-year period, VTEC has performed better with a 6.41% 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 VTEC?

CALI and VTEC have the same expense ratio: 0.08% per year.

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

VTEC has the higher dividend yield at 3.15%, compared with 2.52% for CALI.

What is the main difference between CALI and VTEC?

CALI tracks ICE AMT-Free California Municipal Index, while VTEC tracks S&P California AMT-Free Municipal Bond Index. They also come from different issuers: iShares and Vanguard.

Which has better risk-adjusted returns?

CALI currently has the higher Sharpe Ratio (3.83 vs 2.32), 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.