IBHH vs. VTEB
IBHH (iShares iBonds 2028 Term High Yield and Income ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both exchange-traded funds - IBHH is a High Yield Bonds fund tracking the Bloomberg 2028 Term High Yield and Income Index - Benchmark TR Gross, while VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 3 years, IBHH returned 8.38%/yr vs 3.38%/yr for VTEB. At a 0.45 correlation, their price movements are largely independent. IBHH charges 0.35%/yr vs 0.03%/yr for VTEB.
Performance
IBHH vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, IBHH achieves a 1.76% return, which is significantly higher than VTEB's 1.54% return.
IBHH
- 1D
- 0.11%
- 1M
- 0.57%
- YTD
- 1.76%
- 6M
- 2.27%
- 1Y
- 6.48%
- 3Y*
- 8.38%
- 5Y*
- —
- 10Y*
- —
VTEB
- 1D
- 0.10%
- 1M
- 1.32%
- YTD
- 1.54%
- 6M
- 1.95%
- 1Y
- 6.68%
- 3Y*
- 3.38%
- 5Y*
- 0.88%
- 10Y*
- 2.02%
IBHH vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
IBHH iShares iBonds 2028 Term High Yield and Income ETF | 1.76% | 8.02% | 7.53% | 12.87% | -6.70% |
VTEB Vanguard Tax-Exempt Bond ETF | 1.54% | 3.72% | 1.31% | 6.15% | -4.39% |
Correlation
The correlation between IBHH and VTEB is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.39 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Mar 10, 2022 | 0.45 |
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Return for Risk
IBHH vs. VTEB — Risk / Return Rank
IBHH
VTEB
IBHH vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBonds 2028 Term High Yield and Income ETF (IBHH) 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.
| IBHH | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.21 | ||
| Sortino ratioReturn per unit of downside risk | -0.21 | ||
| Omega ratioGain probability vs. loss probability | 1.45 | 1.55 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 5.32 | 2.48 | +2.84 |
| Martin ratioReturn relative to average drawdown | 21.24 | 8.75 | +12.50 |
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Drawdowns
IBHH vs. VTEB - Drawdown Comparison
The maximum IBHH drawdown since its inception was -12.05%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for IBHH and VTEB.
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Drawdown Indicators
| IBHH | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.05% | -17.00% | +4.95% |
Max Drawdown (1Y)Largest decline over 1 year | -1.22% | -2.71% | +1.49% |
Max Drawdown (3Y)Largest decline over 3 years | -4.66% | -5.53% | +0.87% |
Max Drawdown (5Y)Largest decline over 5 years | — | -12.64% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -17.00% | — |
Current DrawdownCurrent decline from peak | -0.04% | -0.44% | +0.40% |
Average DrawdownAverage peak-to-trough decline | -2.28% | -2.32% | +0.04% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.31% | 0.77% | -0.46% |
Volatility
IBHH vs. VTEB - Volatility Comparison
The current volatility for iShares iBonds 2028 Term High Yield and Income ETF (IBHH) is 0.70%, while Vanguard Tax-Exempt Bond ETF (VTEB) has a volatility of 0.92%. This indicates that IBHH experiences smaller price fluctuations and is considered to be less risky 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
| IBHH | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.70% | 0.92% | -0.22% |
Volatility (6M)Calculated over the trailing 6-month period | 2.10% | 2.04% | +0.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.83% | 2.67% | +0.16% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.23% | 3.90% | +3.33% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.23% | 5.26% | +1.97% |
IBHH vs. VTEB - Expense Ratio Comparison
IBHH has a 0.35% expense ratio, which is higher than VTEB's 0.03% expense ratio.
Dividends
IBHH vs. VTEB - Dividend Comparison
IBHH's dividend yield for the trailing twelve months is around 6.26%, more than VTEB's 3.35% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBHH iShares iBonds 2028 Term High Yield and Income ETF | 6.26% | 6.39% | 6.93% | 6.65% | 5.36% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 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
IBHH and VTEB have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEB has higher volatility (0.92%) compared to IBHH (0.70%). In terms of maximum drawdown, IBHH dropped -12.05% vs VTEB's -17.00%.
On 3-year performance, IBHH leads with 8.38% vs 3.38% for VTEB. On fees, VTEB is cheaper at 0.03% per year. On volatility, IBHH has been the lower-risk option at 0.70%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, IBHH has performed better with a 8.38% return vs 3.38%. 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 0.35% for IBHH.
IBHH has the higher dividend yield at 6.26%, compared with 3.35% for VTEB.
IBHH is categorized as High Yield Bonds, while VTEB is Municipal Bonds. IBHH tracks Bloomberg 2028 Term High Yield and Income Index - Benchmark TR Gross, while VTEB tracks S&P National AMT-Free Municipal Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.35% for IBHH and 0.03% for VTEB.
VTEB currently has the higher Sharpe Ratio (2.52 vs 2.31), 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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