ETB vs. VTEB

Last updated Jun 5, 2026

ETB (Eaton Vance Tax-Managed Buy-Write Income Fund) and VTEB (Vanguard Tax-Exempt Bond ETF) are both funds - ETB is a Options Trading fund managed by Eaton Vance, while VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index. Over the past 10 years, ETB returned 8.49%/yr vs 2.12%/yr for VTEB. At a 0.05 correlation, their price movements are largely independent. ETB charges 0.01%/yr vs 0.03%/yr for VTEB.

Performance

ETB vs. VTEB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Eaton Vance Tax-Managed Buy-Write Income Fund (ETB) 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, ETB achieves a 4.96% return, which is significantly higher than VTEB's 1.60% return. Over the past 10 years, ETB has outperformed VTEB with an annualized return of 8.49%, while VTEB has yielded a comparatively lower 2.12% annualized return.

ETB

• 1D: -0.06%
• 1M: 1.02%
• YTD: 4.96%
• 6M: 5.97%
• 1Y: 20.11%
• 3Y*: 15.32%
• 5Y*: 7.63%
• 10Y*: 8.49%

VTEB

• 1D: 0.14%
• 1M: 0.75%
• YTD: 1.60%
• 6M: 2.05%
• 1Y: 7.03%
• 3Y*: 3.54%
• 5Y*: 0.91%
• 10Y*: 2.12%

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

ETB vs. VTEB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ETB Eaton Vance Tax-Managed Buy-Write Income Fund	4.96%	11.16%	26.22%	7.50%	-16.59%	23.68%	0.43%	32.40%	-12.75%	9.52%
VTEB Vanguard Tax-Exempt Bond ETF	1.60%	3.72%	1.31%	6.15%	-7.99%	1.14%	5.19%	7.35%	1.04%	4.87%

Correlation

The correlation between ETB and VTEB is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.20
Correlation (5Y) Calculated over the trailing 5-year period	0.16
Correlation (10Y) Calculated over the trailing 10-year period	0.07
Correlation (All Time) Calculated using the full available price history since Aug 26, 2015	0.05

The correlation between ETB and VTEB shifts across timeframes, from 0.05 (all time) to 0.20 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

ETB vs. VTEB — Risk / Return Rank

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

ETB

ETB Risk / Return Rank: 44
ETB Sharpe Ratio Rank: 41
ETB Sortino Ratio Rank: 41
ETB Omega Ratio Rank: 42
ETB Calmar Ratio Rank: 36
ETB Martin Ratio Rank: 59

VTEB

VTEB Risk / Return Rank: 73
VTEB Sharpe Ratio Rank: 81
VTEB Sortino Ratio Rank: 87
VTEB Omega Ratio Rank: 90
VTEB Calmar Ratio Rank: 54
VTEB 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.

ETB vs. VTEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Eaton Vance Tax-Managed Buy-Write Income Fund (ETB) 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.

	ETB	VTEB	Difference
Sharpe ratio: Return per unit of total volatility	1.81	2.61	-0.79
Sortino ratio: Return per unit of downside risk	2.61	3.86	-1.25
Omega ratio: Gain probability vs. loss probability	1.34	1.57	-0.23
Calmar ratio: Return relative to maximum drawdown	2.20	2.60	-0.40
Martin ratio: Return relative to average drawdown	11.57	9.25	+2.32
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ETB vs. VTEB - Sharpe Ratio Comparison

The current ETB Sharpe Ratio is 1.81, which is lower than the VTEB Sharpe Ratio of 2.61. The chart below compares the historical Sharpe Ratios of ETB 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.

Sharpe Ratios by Period

	ETB	VTEB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.81	2.61	-0.79
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.47	0.23	+0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.40	+0.07
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	0.48	-0.07

Drawdowns

ETB vs. VTEB - Drawdown Comparison

The maximum ETB drawdown since its inception was -51.09%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for ETB and VTEB.

Drawdown Indicators

	ETB	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	-51.09%	-17.00%	-34.09%
Max Drawdown (1Y) Largest decline over 1 year	-9.16%	-2.71%	-6.45%
Max Drawdown (3Y) Largest decline over 3 years	-20.09%	-5.53%	-14.56%
Max Drawdown (5Y) Largest decline over 5 years	-23.43%	-12.64%	-10.79%
Max Drawdown (10Y) Largest decline over 10 years	-45.08%	-17.00%	-28.08%
Current Drawdown Current decline from peak	-0.77%	-0.38%	-0.39%
Average Drawdown Average peak-to-trough decline	-6.72%	-2.33%	-4.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.74%	0.76%	+0.98%

Volatility

ETB vs. VTEB - Volatility Comparison

Eaton Vance Tax-Managed Buy-Write Income Fund (ETB) has a higher volatility of 2.57% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.90%. This indicates that ETB'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

	ETB	VTEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.57%	0.90%	+1.67%
Volatility (6M) Calculated over the trailing 6-month period	9.04%	2.01%	+7.03%
Volatility (1Y) Calculated over the trailing 1-year period	11.14%	2.72%	+8.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.26%	3.90%	+12.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.01%	5.26%	+12.75%

ETB vs. VTEB - Expense Ratio Comparison

ETB has a 0.01% expense ratio, which is lower than VTEB's 0.03% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ETB vs. VTEB - Dividend Comparison

ETB's dividend yield for the trailing twelve months is around 8.20%, more than VTEB's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ETB Eaton Vance Tax-Managed Buy-Write Income Fund	8.20%	8.31%	8.21%	8.62%	9.63%	7.57%	8.64%	7.90%	9.64%	7.75%	7.85%	7.77%
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 ETB and VTEB in my portfolio?

ETB and VTEB have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ETB or VTEB?

ETB has higher volatility (2.57%) compared to VTEB (0.90%). In terms of maximum drawdown, ETB dropped -51.09% vs VTEB's -17.00%.

Which has better risk-adjusted returns?

VTEB currently has the higher Sharpe Ratio (2.61 vs 1.81), 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.