JHMU vs. VTEB

Last updated Jun 5, 2026

JHMU (John Hancock Dynamic Municipal Bond ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds - JHMU tracks the John Hancock Dimensional Utilities Index while VTEB tracks the S&P National AMT-Free Municipal Bond Index. Both are passively managed. Over the past year, JHMU returned 7.41% vs 7.03% for VTEB. A 0.78 correlation means they provide meaningful diversification when combined. JHMU charges 0.39%/yr vs 0.03%/yr for VTEB.

Performance

JHMU vs. VTEB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in John Hancock Dynamic Municipal Bond ETF (JHMU) 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, JHMU achieves a 1.83% return, which is significantly higher than VTEB's 1.60% return.

JHMU

• 1D: 0.17%
• 1M: 0.81%
• YTD: 1.83%
• 6M: 2.36%
• 1Y: 7.41%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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)

JHMU vs. VTEB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
JHMU John Hancock Dynamic Municipal Bond ETF	1.83%	5.03%	3.76%	7.77%
VTEB Vanguard Tax-Exempt Bond ETF	1.60%	3.72%	1.31%	6.89%

Correlation

The correlation between JHMU and VTEB is 0.79, 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	0.79
Correlation (All Time) Calculated using the full available price history since Nov 3, 2023	0.78

The correlation between JHMU and VTEB has been stable across timeframes, ranging from 0.78 to 0.79 - a consistent structural relationship.

Return for Risk

JHMU vs. VTEB — Risk / Return Rank

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

JHMU

JHMU Risk / Return Rank: 74
JHMU Sharpe Ratio Rank: 83
JHMU Sortino Ratio Rank: 87
JHMU Omega Ratio Rank: 89
JHMU Calmar Ratio Rank: 55
JHMU Martin Ratio Rank: 56

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.

JHMU vs. VTEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for John Hancock Dynamic Municipal Bond ETF (JHMU) 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.

	JHMU	VTEB	Difference
Sharpe ratio: Return per unit of total volatility	2.64	2.61	+0.03
Sortino ratio: Return per unit of downside risk	3.90	3.86	+0.04
Omega ratio: Gain probability vs. loss probability	1.56	1.57	-0.01
Calmar ratio: Return relative to maximum drawdown	2.69	2.60	+0.08
Martin ratio: Return relative to average drawdown	9.63	9.25	+0.38
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

JHMU vs. VTEB - Sharpe Ratio Comparison

The current JHMU Sharpe Ratio is 2.64, which is comparable to the VTEB Sharpe Ratio of 2.61. The chart below compares the historical Sharpe Ratios of JHMU 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

	JHMU	VTEB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.64	2.61	+0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.23	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.40	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.76	0.48	+1.28

Drawdowns

JHMU vs. VTEB - Drawdown Comparison

The maximum JHMU drawdown since its inception was -4.48%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for JHMU and VTEB.

Drawdown Indicators

	JHMU	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	-4.48%	-17.00%	+12.52%
Max Drawdown (1Y) Largest decline over 1 year	-2.77%	-2.71%	-0.06%
Max Drawdown (3Y) Largest decline over 3 years	—	-5.53%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-12.64%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-17.00%	—
Current Drawdown Current decline from peak	-0.43%	-0.38%	-0.05%
Average Drawdown Average peak-to-trough decline	-0.84%	-2.33%	+1.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.77%	0.76%	+0.01%

Volatility

JHMU vs. VTEB - Volatility Comparison

John Hancock Dynamic Municipal Bond ETF (JHMU) has a higher volatility of 0.97% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.90%. This indicates that JHMU'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

	JHMU	VTEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.97%	0.90%	+0.07%
Volatility (6M) Calculated over the trailing 6-month period	2.21%	2.01%	+0.20%
Volatility (1Y) Calculated over the trailing 1-year period	2.82%	2.72%	+0.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.11%	3.90%	+0.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.11%	5.26%	-1.15%

JHMU vs. VTEB - Expense Ratio Comparison

JHMU has a 0.39% expense ratio, which is higher than VTEB's 0.03% expense ratio.

Dividends

JHMU vs. VTEB - Dividend Comparison

JHMU's dividend yield for the trailing twelve months is around 3.72%, more than VTEB's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
JHMU John Hancock Dynamic Municipal Bond ETF	3.72%	4.36%	7.29%	0.63%	0.00%	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

Can I hold both JHMU and VTEB in my portfolio?

JHMU and VTEB have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, JHMU or VTEB?

JHMU has higher volatility (0.97%) compared to VTEB (0.90%). In terms of maximum drawdown, JHMU dropped -4.48% vs VTEB's -17.00%.

Which ETF is better, JHMU or VTEB?

On 1-year performance, JHMU leads with 7.41% vs 7.03% 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.

Which ETF has performed better, JHMU or VTEB?

Over the 1-year period, JHMU has performed better with a 7.41% return vs 7.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, JHMU or VTEB?

VTEB is cheaper with a 0.03% expense ratio, compared with 0.39% for JHMU.

Which ETF pays a higher dividend yield, JHMU or VTEB?

JHMU has the higher dividend yield at 3.72%, compared with 3.35% for VTEB.

What is the main difference between JHMU and VTEB?

JHMU tracks John Hancock Dimensional Utilities Index, while VTEB tracks S&P National AMT-Free Municipal Bond Index. They also come from different issuers: John Hancock and Vanguard. Their fees differ too: 0.39% for JHMU and 0.03% for VTEB.

Which has better risk-adjusted returns?

JHMU currently has the higher Sharpe Ratio (2.64 vs 2.61), 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.