FLMB vs. VTEB
FLMB (Franklin Liberty Federal Tax-Free Bond ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds. FLMB is actively managed, while VTEB is passively managed. Over the past 5 years, FLMB returned 0.64%/yr vs 0.88%/yr for VTEB. A 0.70 correlation means they provide meaningful diversification when combined. FLMB charges 0.30%/yr vs 0.03%/yr for VTEB.
Performance
FLMB vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, FLMB achieves a 1.89% return, which is significantly higher than VTEB's 1.46% return.
FLMB
- 1D
- -0.09%
- 1M
- 0.74%
- YTD
- 1.89%
- 6M
- 2.27%
- 1Y
- 8.74%
- 3Y*
- 4.38%
- 5Y*
- 0.64%
- 10Y*
- —
VTEB
- 1D
- -0.06%
- 1M
- 0.66%
- YTD
- 1.46%
- 6M
- 1.89%
- 1Y
- 7.14%
- 3Y*
- 3.57%
- 5Y*
- 0.88%
- 10Y*
- 2.09%
FLMB vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FLMB Franklin Liberty Federal Tax-Free Bond ETF | 1.89% | 3.93% | 2.47% | 7.72% | -12.16% | 0.80% | 7.39% | 8.90% | 0.43% | 0.63% |
VTEB Vanguard Tax-Exempt Bond ETF | 1.46% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 0.11% |
Correlation
The correlation between FLMB and VTEB is 0.70, 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 | 0.70 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.76 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.79 |
Correlation (All Time) Calculated using the full available price history since Sep 6, 2017 | 0.70 |
The correlation between FLMB and VTEB has been stable across timeframes, ranging from 0.70 to 0.79 - a consistent structural relationship.
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Return for Risk
FLMB vs. VTEB — Risk / Return Rank
FLMB
VTEB
FLMB vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty Federal Tax-Free Bond ETF (FLMB) 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.
| FLMB | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.27 | ||
| Sortino ratioReturn per unit of downside risk | -0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.50 | 1.58 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 2.70 | 2.65 | +0.05 |
| Martin ratioReturn relative to average drawdown | 9.56 | 9.41 | +0.15 |
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
| FLMB | VTEB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.37 | 2.64 | -0.27 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.13 | 0.23 | -0.10 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.40 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.42 | 0.47 | -0.05 |
Drawdowns
FLMB vs. VTEB - Drawdown Comparison
The maximum FLMB drawdown since its inception was -17.90%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for FLMB and VTEB.
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Drawdown Indicators
| FLMB | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.90% | -17.00% | -0.90% |
Max Drawdown (1Y)Largest decline over 1 year | -3.25% | -2.71% | -0.54% |
Max Drawdown (3Y)Largest decline over 3 years | -7.33% | -5.53% | -1.80% |
Max Drawdown (5Y)Largest decline over 5 years | -17.90% | -12.64% | -5.26% |
Max Drawdown (10Y)Largest decline over 10 years | — | -17.00% | — |
Current DrawdownCurrent decline from peak | -0.46% | -0.52% | +0.06% |
Average DrawdownAverage peak-to-trough decline | -4.17% | -2.33% | -1.84% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.76% | +0.16% |
Volatility
FLMB vs. VTEB - Volatility Comparison
Franklin Liberty Federal Tax-Free Bond ETF (FLMB) has a higher volatility of 1.11% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.89%. This indicates that FLMB'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
| FLMB | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.11% | 0.89% | +0.22% |
Volatility (6M)Calculated over the trailing 6-month period | 2.46% | 2.01% | +0.45% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.70% | 2.72% | +0.98% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.11% | 3.90% | +1.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.58% | 5.26% | +0.32% |
FLMB vs. VTEB - Expense Ratio Comparison
FLMB has a 0.30% expense ratio, which is higher than VTEB's 0.03% expense ratio.
Dividends
FLMB vs. VTEB - Dividend Comparison
FLMB's dividend yield for the trailing twelve months is around 3.75%, more than VTEB's 3.35% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FLMB Franklin Liberty Federal Tax-Free Bond ETF | 3.75% | 3.86% | 3.79% | 3.49% | 2.80% | 1.66% | 2.07% | 2.40% | 2.68% | 0.54% | 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
FLMB and VTEB have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FLMB has higher volatility (1.11%) compared to VTEB (0.89%). In terms of maximum drawdown, FLMB dropped -17.90% vs VTEB's -17.00%.
On 5-year performance, VTEB leads with 0.88% vs 0.64% for FLMB. On fees, VTEB is cheaper at 0.03% per year. On volatility, VTEB has been the lower-risk option at 0.89%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VTEB has performed better with a 0.88% return vs 0.64%. 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 0.30% for FLMB.
FLMB has the higher dividend yield at 3.75%, compared with 3.35% for VTEB.
They also come from different issuers: Franklin Templeton and Vanguard. Their fees differ too: 0.30% for FLMB and 0.03% for VTEB.
VTEB currently has the higher Sharpe Ratio (2.64 vs 2.37), 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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