FBND vs. VTEB
FBND (Fidelity Total Bond ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both exchange-traded funds - FBND is a Intermediate Core-Plus Bond fund actively managed by Fidelity, while VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index. FBND is actively managed, while VTEB is passively managed. Over the past 10 years, FBND returned 2.57%/yr vs 2.12%/yr for VTEB. A 0.62 correlation means they provide meaningful diversification when combined. FBND charges 0.36%/yr vs 0.03%/yr for VTEB.
Performance
FBND vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, FBND achieves a 0.61% return, which is significantly lower than VTEB's 1.60% return. Over the past 10 years, FBND has outperformed VTEB with an annualized return of 2.57%, while VTEB has yielded a comparatively lower 2.12% annualized return.
FBND
- 1D
- 0.11%
- 1M
- 0.25%
- YTD
- 0.61%
- 6M
- 0.60%
- 1Y
- 5.08%
- 3Y*
- 4.80%
- 5Y*
- 0.86%
- 10Y*
- 2.57%
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%
FBND vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FBND Fidelity Total Bond ETF | 0.61% | 7.57% | 2.13% | 6.81% | -12.54% | -0.43% | 9.41% | 9.82% | -0.57% | 3.52% |
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 FBND and VTEB is 0.67, 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 | 0.67 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.78 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.73 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.65 |
Correlation (All Time) Calculated using the full available price history since Aug 26, 2015 | 0.62 |
The correlation between FBND and VTEB shifts across timeframes, from 0.62 (all time) to 0.78 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
FBND vs. VTEB — Risk / Return Rank
FBND
VTEB
FBND vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Fidelity Total Bond ETF (FBND) 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.
| FBND | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.27 | ||
| Sortino ratioReturn per unit of downside risk | -1.89 | ||
| Omega ratioGain probability vs. loss probability | 1.23 | 1.57 | -0.34 |
| Calmar ratioReturn relative to maximum drawdown | 1.91 | 2.60 | -0.69 |
| Martin ratioReturn relative to average drawdown | 5.77 | 9.25 | -3.48 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FBND | VTEB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.34 | 2.61 | -1.27 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.15 | 0.23 | -0.09 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.42 | 0.40 | +0.02 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.45 | 0.48 | -0.03 |
Drawdowns
FBND vs. VTEB - Drawdown Comparison
The maximum FBND drawdown since its inception was -17.25%, roughly equal to the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for FBND and VTEB.
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Drawdown Indicators
| FBND | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.25% | -17.00% | -0.25% |
Max Drawdown (1Y)Largest decline over 1 year | -2.66% | -2.71% | +0.05% |
Max Drawdown (3Y)Largest decline over 3 years | -5.94% | -5.53% | -0.41% |
Max Drawdown (5Y)Largest decline over 5 years | -17.25% | -12.64% | -4.61% |
Max Drawdown (10Y)Largest decline over 10 years | -17.25% | -17.00% | -0.25% |
Current DrawdownCurrent decline from peak | -1.32% | -0.38% | -0.94% |
Average DrawdownAverage peak-to-trough decline | -3.35% | -2.33% | -1.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.88% | 0.76% | +0.12% |
Volatility
FBND vs. VTEB - Volatility Comparison
Fidelity Total Bond ETF (FBND) has a higher volatility of 1.26% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.90%. This indicates that FBND'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.
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Volatility by Period
| FBND | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.26% | 0.90% | +0.36% |
Volatility (6M)Calculated over the trailing 6-month period | 2.73% | 2.01% | +0.72% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.86% | 2.72% | +1.14% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.92% | 3.90% | +2.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.09% | 5.26% | +0.83% |
FBND vs. VTEB - Expense Ratio Comparison
FBND has a 0.36% expense ratio, which is higher than VTEB's 0.03% expense ratio.
Dividends
FBND vs. VTEB - Dividend Comparison
FBND's dividend yield for the trailing twelve months is around 4.70%, more than VTEB's 3.35% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FBND Fidelity Total Bond ETF | 4.70% | 4.70% | 4.73% | 4.26% | 3.07% | 1.86% | 4.25% | 2.90% | 2.93% | 2.56% | 2.84% | 3.26% |
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
FBND and VTEB have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FBND has higher volatility (1.26%) compared to VTEB (0.90%). In terms of maximum drawdown, FBND dropped -17.25% vs VTEB's -17.00%.
On 10-year performance, FBND leads with 2.57% vs 2.12% for VTEB. On fees, VTEB is cheaper at 0.03% per year. On volatility, VTEB has been the lower-risk option at 0.90%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FBND has performed better with a 2.57% return vs 2.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTEB is cheaper with a 0.03% expense ratio, compared with 0.36% for FBND.
FBND has the higher dividend yield at 4.70%, compared with 3.35% for VTEB.
FBND is categorized as Intermediate Core-Plus Bond, while VTEB is Municipal Bonds. They also come from different issuers: Fidelity and Vanguard. Their fees differ too: 0.36% for FBND and 0.03% for VTEB.
VTEB currently has the higher Sharpe Ratio (2.61 vs 1.34), 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.
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