ESGB vs. VTEB

Last updated Aug 1, 2026

ESGB (IQ MacKay ESG Core Plus Bond ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both exchange-traded funds - ESGB is a Intermediate Core-Plus Bond fund actively managed by IndexIQ, while VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index. ESGB is actively managed, while VTEB is passively managed. Their -0.02 correlation means they have often moved in opposite directions in the past. ESGB charges 0.39%/yr vs 0.03%/yr for VTEB.

Performance

ESGB vs. VTEB - Performance Comparison

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

Returns By Period

ESGB

• 1D: —
• 1M: —
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

VTEB

• 1D: -0.10%
• 1M: -1.84%
• 6M: -0.23%
• YTD: 0.31%
• 1Y: 4.77%
• 3Y*: 2.92%
• 5Y*: 0.53%
• 10Y*: 1.88%
• ALL TIME*: 2.28%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VTEB Vanguard Tax-Exempt Bond ETF	$377.87M	$352.76M	$360.69M

ESGB vs. VTEB - Yearly Performance Comparison

	2026 (YTD)
ESGB IQ MacKay ESG Core Plus Bond ETF	-0.18%
VTEB Vanguard Tax-Exempt Bond ETF	-1.13%

Correlation

The correlation between ESGB and VTEB is -0.02, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 4, 2026	-0.02

Return for Risk

ESGB vs. VTEB — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ESGB

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

VTEB

VTEB Risk / Return Rank: 74
VTEB Sharpe Ratio Rank: 84
VTEB Sortino Ratio Rank: 85
VTEB Omega Ratio Rank: 89
VTEB Calmar Ratio Rank: 57
VTEB Martin Ratio Rank: 56

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ESGB vs. VTEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for IQ MacKay ESG Core Plus Bond ETF (ESGB) 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.

	ESGB	VTEB	Difference
Sharpe ratio: Return per unit of total volatility	—	1.95	—
Sortino ratio: Return per unit of downside risk	—	2.79	—
Omega ratio: Gain probability vs. loss probability	—	1.41	—
Calmar ratio: Return relative to maximum drawdown	—	2.00	—
Martin ratio: Return relative to average drawdown	—	6.62	—

Drawdowns

Drawdown Indicators

	ESGB	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	—	-17.00%	—
Max Drawdown (1Y) Largest decline over 1 year	—	-2.71%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-4.76%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-12.56%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-17.00%	—
Current Drawdown Current decline from peak	—	-1.86%	—
Average Drawdown Average peak-to-trough decline	—	-2.30%	—
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.82%	—

Volatility

Volatility by Period

	ESGB	VTEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.88%	—
Volatility (6M) Calculated over the trailing 6-month period	—	2.22%	—
Volatility (1Y) Calculated over the trailing 1-year period	—	2.79%	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	—	3.92%	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	—	5.25%	—

ESGB vs. VTEB - Expense Ratio Comparison

ESGB has a 0.39% expense ratio, which is higher than VTEB's 0.03% expense ratio.

Dividends

ESGB vs. VTEB - Dividend Comparison

ESGB has not paid dividends to shareholders, while VTEB's dividend yield for the trailing twelve months is around 3.42%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESGB IQ MacKay ESG Core Plus Bond ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VTEB Vanguard Tax-Exempt Bond ETF	3.14%	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 ESGB and VTEB in my portfolio?

ESGB and VTEB have a correlation of -0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ESGB or VTEB?

On fees, VTEB is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ESGB or VTEB?

VTEB is cheaper with a 0.03% expense ratio, compared with 0.39% for ESGB.

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

VTEB has the higher dividend yield at 3.14%, compared with 0.00% for ESGB.

What is the main difference between ESGB and VTEB?

ESGB is categorized as Intermediate Core-Plus Bond, while VTEB is Municipal Bonds. They also come from different issuers: IndexIQ and Vanguard. Their fees differ too: 0.39% for ESGB and 0.03% for VTEB.