DOW vs. VTEB

Last updated Jun 23, 2026

DOW (Dow Inc.) is a stock, while VTEB (Vanguard Tax-Exempt Bond ETF) is Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index. Over the past 5 years, DOW returned -8.53%/yr vs 0.95%/yr for VTEB. At a correlation of -0.02, they often move in opposite directions.

Performance

DOW vs. VTEB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dow Inc. (DOW) 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, DOW achieves a 34.61% return, which is significantly higher than VTEB's 1.72% return.

DOW

• 1D: -2.96%
• 1M: -13.63%
• YTD: 34.61%
• 6M: 34.38%
• 1Y: 16.72%
• 3Y*: -10.64%
• 5Y*: -8.53%
• 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)

DOW vs. VTEB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
DOW Dow Inc.	34.61%	-37.38%	-22.79%	14.71%	-6.65%	6.81%	7.88%	8.40%
VTEB Vanguard Tax-Exempt Bond ETF	1.72%	3.72%	1.31%	6.15%	-7.99%	1.14%	5.19%	5.62%

Correlation

The correlation between DOW and VTEB is -0.11, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.11
Correlation (3Y) Calculated over the trailing 3-year period	0.04
Correlation (5Y) Calculated over the trailing 5-year period	0.03
Correlation (All Time) Calculated using the full available price history since Mar 20, 2019	-0.02

The correlation between DOW and VTEB shifts across timeframes, from -0.11 (1 year) to 0.04 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

DOW vs. VTEB — Risk / Return Rank

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

DOW

DOW Risk / Return Rank: 53
DOW Sharpe Ratio Rank: 54
DOW Sortino Ratio Rank: 51
DOW Omega Ratio Rank: 50
DOW Calmar Ratio Rank: 55
DOW Martin Ratio Rank: 53

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.

DOW vs. VTEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dow Inc. (DOW) 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.

	DOW	VTEB	Difference
Sharpe ratio: Return per unit of total volatility	0.34	2.53	-2.19
Sortino ratio: Return per unit of downside risk	0.82	3.75	-2.93
Omega ratio: Gain probability vs. loss probability	1.10	1.55	-0.45
Calmar ratio: Return relative to maximum drawdown	0.54	2.51	-1.97
Martin ratio: Return relative to average drawdown	1.00	8.83	-7.83

DOW vs. VTEB - Sharpe Ratio Comparison

The current DOW Sharpe Ratio is 0.34, which is lower than the VTEB Sharpe Ratio of 2.53. The chart below compares the historical Sharpe Ratios of DOW 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

DOW vs. VTEB - Drawdown Comparison

The maximum DOW drawdown since its inception was -64.37%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for DOW and VTEB.

Drawdown Indicators

	DOW	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	-64.37%	-17.00%	-47.37%
Max Drawdown (1Y) Largest decline over 1 year	-31.28%	-2.71%	-28.57%
Max Drawdown (3Y) Largest decline over 3 years	-62.16%	-5.53%	-56.63%
Max Drawdown (5Y) Largest decline over 5 years	-64.37%	-12.64%	-51.73%
Max Drawdown (10Y) Largest decline over 10 years	—	-17.00%	—
Current Drawdown Current decline from peak	-44.69%	-0.26%	-44.43%
Average Drawdown Average peak-to-trough decline	-22.84%	-2.32%	-20.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.68%	0.77%	+15.91%

Volatility

DOW vs. VTEB - Volatility Comparison

Dow Inc. (DOW) has a higher volatility of 8.34% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.71%. This indicates that DOW'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

	DOW	VTEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.34%	0.71%	+7.63%
Volatility (6M) Calculated over the trailing 6-month period	32.86%	2.06%	+30.80%
Volatility (1Y) Calculated over the trailing 1-year period	49.26%	2.68%	+46.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.56%	3.90%	+29.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.68%	5.26%	+33.42%

Dividends

DOW vs. VTEB - Dividend Comparison

DOW's dividend yield for the trailing twelve months is around 4.55%, more than VTEB's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DOW Dow Inc.	4.55%	8.98%	6.98%	5.11%	5.56%	4.94%	5.05%	3.84%	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 DOW and VTEB in my portfolio?

DOW and VTEB have a correlation of -0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DOW or VTEB?

DOW has higher volatility (8.34%) compared to VTEB (0.71%). In terms of maximum drawdown, DOW dropped -64.37% vs VTEB's -17.00%.

Which has better risk-adjusted returns?

VTEB currently has the higher Sharpe Ratio (2.53 vs 0.34), 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.