FMB vs. VTEB
FMB (First Trust Managed Municipal ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds. FMB is actively managed, while VTEB is passively managed. Over the past 10 years, FMB returned 2.20%/yr vs 1.97%/yr for VTEB. A 0.72 correlation means they provide meaningful diversification when combined. FMB charges 0.50%/yr vs 0.03%/yr for VTEB.
Performance
FMB vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, FMB achieves a 2.04% return, which is significantly higher than VTEB's 1.72% return. Over the past 10 years, FMB has outperformed VTEB with an annualized return of 2.20%, while VTEB has yielded a comparatively lower 1.97% annualized return.
FMB
- 1D
- 0.00%
- 1M
- 1.42%
- YTD
- 2.04%
- 6M
- 2.15%
- 1Y
- 6.92%
- 3Y*
- 3.74%
- 5Y*
- 0.78%
- 10Y*
- 2.20%
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%
FMB vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FMB First Trust Managed Municipal ETF | 2.04% | 3.73% | 1.94% | 6.31% | -9.91% | 2.43% | 4.44% | 8.25% | 0.89% | 7.22% |
VTEB Vanguard Tax-Exempt Bond ETF | 1.72% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
Correlation
The correlation between FMB and VTEB is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.87 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.87 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.75 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.72 |
The correlation between FMB and VTEB shifts across timeframes, from 0.72 (all time) to 0.89 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
FMB vs. VTEB — Risk / Return Rank
FMB
VTEB
FMB vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Managed Municipal ETF (FMB) 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.
| FMB | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.10 | ||
| Sortino ratioReturn per unit of downside risk | +0.10 | ||
| Omega ratioGain probability vs. loss probability | 1.59 | 1.55 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.54 | 2.51 | +0.04 |
| Martin ratioReturn relative to average drawdown | 9.06 | 8.83 | +0.23 |
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Drawdowns
FMB vs. VTEB - Drawdown Comparison
The maximum FMB drawdown since its inception was -14.16%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for FMB and VTEB.
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Drawdown Indicators
| FMB | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.16% | -17.00% | +2.84% |
Max Drawdown (1Y)Largest decline over 1 year | -2.73% | -2.71% | -0.02% |
Max Drawdown (3Y)Largest decline over 3 years | -4.76% | -5.53% | +0.77% |
Max Drawdown (5Y)Largest decline over 5 years | -14.16% | -12.64% | -1.52% |
Max Drawdown (10Y)Largest decline over 10 years | -14.16% | -17.00% | +2.84% |
Current DrawdownCurrent decline from peak | -0.24% | -0.26% | +0.02% |
Average DrawdownAverage peak-to-trough decline | -2.60% | -2.32% | -0.28% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.76% | 0.77% | -0.01% |
Volatility
FMB vs. VTEB - Volatility Comparison
First Trust Managed Municipal ETF (FMB) and Vanguard Tax-Exempt Bond ETF (VTEB) have volatilities of 0.73% and 0.71%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FMB | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.73% | 0.71% | +0.02% |
Volatility (6M)Calculated over the trailing 6-month period | 1.96% | 2.06% | -0.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.64% | 2.68% | -0.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.71% | 3.90% | -0.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.55% | 5.26% | -0.71% |
FMB vs. VTEB - Expense Ratio Comparison
FMB has a 0.50% expense ratio, which is higher than VTEB's 0.03% expense ratio.
Dividends
FMB vs. VTEB - Dividend Comparison
FMB's dividend yield for the trailing twelve months is around 3.49%, more than VTEB's 3.35% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FMB First Trust Managed Municipal ETF | 3.49% | 3.37% | 3.22% | 2.98% | 2.47% | 1.96% | 2.19% | 2.47% | 2.58% | 2.49% | 2.93% | 3.07% |
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
FMB and VTEB have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FMB has higher volatility (0.73%) compared to VTEB (0.71%). In terms of maximum drawdown, FMB dropped -14.16% vs VTEB's -17.00%.
On 10-year performance, FMB leads with 2.20% vs 1.97% for VTEB. On fees, VTEB is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FMB has performed better with a 2.20% return vs 1.97%. 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 0.50% for FMB.
FMB has the higher dividend yield at 3.49%, compared with 3.35% for VTEB.
They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.50% for FMB and 0.03% for VTEB.
FMB currently has the higher Sharpe Ratio (2.64 vs 2.53), 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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