CMF vs. VTEC

Last updated Jul 17, 2026

CMF (iShares California Muni Bond ETF) and VTEC (Vanguard California Tax-Exempt Bond ETF) are both exchange-traded funds - CMF is a Single State Muni fund tracking the S&P California AMT-Free Municipal Bond Index, while VTEC is a Municipal Bonds fund tracking the S&P California AMT-Free Municipal Bond Index. Both are passively managed. Over the past year, CMF returned 6.44% vs 6.40% for VTEC. Their correlation of 0.82 suggests significant overlap in exposure. Both charge a 0.08% expense ratio.

Performance

CMF vs. VTEC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares California Muni Bond ETF (CMF) 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, CMF achieves a 0.87% return, which is significantly lower than VTEC's 0.98% return.

CMF

• 1D: -0.23%
• 1M: -0.24%
• 6M: 0.16%
• YTD: 0.87%
• 1Y: 6.44%
• 3Y*: 2.96%
• 5Y*: 0.53%
• 10Y*: 1.63%

VTEC

• 1D: -0.16%
• 1M: -0.14%
• 6M: 0.33%
• YTD: 0.98%
• 1Y: 6.40%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

CMF vs. VTEC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
CMF iShares California Muni Bond ETF	0.87%	3.36%	2.12%
VTEC Vanguard California Tax-Exempt Bond ETF	0.98%	3.98%	1.48%

Correlation

The correlation between CMF and VTEC is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (All Time) Calculated using the full available price history since Jan 30, 2024	0.82

The correlation between CMF and VTEC has been stable across timeframes, ranging from 0.82 to 0.85 - a consistent structural relationship.

Return for Risk

CMF vs. VTEC — Risk / Return Rank

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

CMF

CMF Risk / Return Rank: 76
CMF Sharpe Ratio Rank: 89
CMF Sortino Ratio Rank: 89
CMF Omega Ratio Rank: 93
CMF Calmar Ratio Rank: 54
CMF Martin Ratio Rank: 53

VTEC

VTEC Risk / Return Rank: 77
VTEC Sharpe Ratio Rank: 89
VTEC Sortino Ratio Rank: 92
VTEC Omega Ratio Rank: 93
VTEC Calmar Ratio Rank: 56
VTEC Martin Ratio Rank: 55

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.

CMF vs. VTEC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares California Muni Bond ETF (CMF) 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.

	CMF	VTEC	Difference
Sharpe ratio: Return per unit of total volatility	2.33	2.38	-0.05
Sortino ratio: Return per unit of downside risk	3.34	3.58	-0.24
Omega ratio: Gain probability vs. loss probability	1.52	1.52	0.00
Calmar ratio: Return relative to maximum drawdown	2.22	2.25	-0.03
Martin ratio: Return relative to average drawdown	7.30	7.51	-0.20

CMF vs. VTEC - Sharpe Ratio Comparison

The current CMF Sharpe Ratio is 2.33, which is comparable to the VTEC Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of CMF 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

CMF vs. VTEC - Drawdown Comparison

The maximum CMF drawdown since its inception was -16.45%, which is greater than VTEC's maximum drawdown of -4.50%. Use the drawdown chart below to compare losses from any high point for CMF and VTEC.

Drawdown Indicators

	CMF	VTEC	Difference
Max Drawdown Largest peak-to-trough decline	-16.45%	-4.50%	-11.95%
Max Drawdown (1Y) Largest decline over 1 year	-2.91%	-2.85%	-0.06%
Max Drawdown (3Y) Largest decline over 3 years	-5.22%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-12.45%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-14.57%	—	—
Current Drawdown Current decline from peak	-1.00%	-0.82%	-0.18%
Average Drawdown Average peak-to-trough decline	-4.74%	-1.09%	-3.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	0.85%	+0.03%

Volatility

CMF vs. VTEC - Volatility Comparison

iShares California Muni Bond ETF (CMF) has a higher volatility of 0.59% compared to Vanguard California Tax-Exempt Bond ETF (VTEC) at 0.54%. This indicates that CMF's price experiences larger fluctuations and is considered to be riskier than VTEC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CMF	VTEC	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.59%	0.54%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	2.20%	1.93%	+0.27%
Volatility (1Y) Calculated over the trailing 1-year period	2.78%	2.71%	+0.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.20%	3.68%	+0.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.07%	3.68%	+1.39%

CMF vs. VTEC - Expense Ratio Comparison

Both CMF 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

CMF vs. VTEC - Dividend Comparison

CMF's dividend yield for the trailing twelve months is around 2.96%, less than VTEC's 3.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CMF iShares California Muni Bond ETF	2.96%	2.94%	2.78%	2.29%	1.91%	1.58%	1.80%	2.03%	2.17%	2.09%	2.21%	2.55%
VTEC Vanguard California Tax-Exempt Bond ETF	3.16%	3.13%	2.54%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both CMF and VTEC in my portfolio?

CMF and VTEC have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CMF or VTEC?

CMF has higher volatility (0.59%) compared to VTEC (0.54%). In terms of maximum drawdown, CMF dropped -16.45% vs VTEC's -4.50%.

Which ETF is better, CMF or VTEC?

On 1-year performance, CMF leads with 6.44% vs 6.40% for VTEC. Both ETFs have the same 0.08% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CMF or VTEC?

Over the 1-year period, CMF has performed better with a 6.44% return vs 6.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CMF or VTEC?

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

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

VTEC has the higher dividend yield at 3.16%, compared with 2.96% for CMF.

What is the main difference between CMF and VTEC?

CMF is categorized as Single State Muni, while VTEC is Municipal Bonds. Both ETFs track S&P California AMT-Free Municipal Bond Index. They also come from different issuers: iShares and Vanguard.

Which has better risk-adjusted returns?

VTEC currently has the higher Sharpe Ratio (2.38 vs 2.33), 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.