MUNI vs. VTEB
MUNI (PIMCO Intermediate Municipal Bond Active ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds. MUNI is actively managed, while VTEB is passively managed. Over the past 10 years, MUNI returned 2.12%/yr vs 2.05%/yr for VTEB. A 0.70 correlation means they provide meaningful diversification when combined. MUNI charges 0.35%/yr vs 0.03%/yr for VTEB.
Performance
MUNI vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, MUNI achieves a 1.51% return, which is significantly lower than VTEB's 1.74% return. Both investments have delivered pretty close results over the past 10 years, with MUNI having a 2.12% annualized return and VTEB not far behind at 2.05%.
MUNI
- 1D
- 0.13%
- 1M
- 1.43%
- YTD
- 1.51%
- 6M
- 1.65%
- 1Y
- 6.12%
- 3Y*
- 3.91%
- 5Y*
- 1.29%
- 10Y*
- 2.12%
VTEB
- 1D
- 0.32%
- 1M
- 1.83%
- YTD
- 1.74%
- 6M
- 2.01%
- 1Y
- 6.93%
- 3Y*
- 3.45%
- 5Y*
- 0.91%
- 10Y*
- 2.05%
MUNI vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MUNI PIMCO Intermediate Municipal Bond Active ETF | 1.51% | 4.72% | 1.43% | 6.07% | -6.62% | 0.67% | 4.83% | 7.09% | 0.84% | 4.86% |
VTEB Vanguard Tax-Exempt Bond ETF | 1.74% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
Correlation
The correlation between MUNI and VTEB is 0.84, 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 | 0.84 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.86 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.83 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.72 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.70 |
The correlation between MUNI and VTEB shifts across timeframes, from 0.70 (all time) to 0.86 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
MUNI vs. VTEB — Risk / Return Rank
MUNI
VTEB
MUNI vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for PIMCO Intermediate Municipal Bond Active ETF (MUNI) 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.
| MUNI | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.16 | ||
| Sortino ratioReturn per unit of downside risk | +0.26 | ||
| Omega ratioGain probability vs. loss probability | 1.61 | 1.57 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.68 | 2.57 | +0.11 |
| Martin ratioReturn relative to average drawdown | 8.61 | 9.06 | -0.45 |
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Drawdowns
MUNI vs. VTEB - Drawdown Comparison
The maximum MUNI drawdown since its inception was -11.15%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for MUNI and VTEB.
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Drawdown Indicators
| MUNI | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -11.15% | -17.00% | +5.85% |
Max Drawdown (1Y)Largest decline over 1 year | -2.29% | -2.71% | +0.42% |
Max Drawdown (3Y)Largest decline over 3 years | -4.09% | -5.53% | +1.44% |
Max Drawdown (5Y)Largest decline over 5 years | -11.15% | -12.64% | +1.49% |
Max Drawdown (10Y)Largest decline over 10 years | -11.15% | -17.00% | +5.85% |
Current DrawdownCurrent decline from peak | -0.52% | -0.24% | -0.28% |
Average DrawdownAverage peak-to-trough decline | -1.73% | -2.32% | +0.59% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.71% | 0.77% | -0.06% |
Volatility
MUNI vs. VTEB - Volatility Comparison
The current volatility for PIMCO Intermediate Municipal Bond Active ETF (MUNI) is 0.58%, while Vanguard Tax-Exempt Bond ETF (VTEB) has a volatility of 0.72%. This indicates that MUNI 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
| MUNI | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.58% | 0.72% | -0.14% |
Volatility (6M)Calculated over the trailing 6-month period | 1.62% | 2.06% | -0.44% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.23% | 2.68% | -0.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.32% | 3.90% | -0.58% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.85% | 5.26% | -1.41% |
MUNI vs. VTEB - Expense Ratio Comparison
MUNI has a 0.35% expense ratio, which is higher than VTEB's 0.03% expense ratio.
Dividends
MUNI vs. VTEB - Dividend Comparison
MUNI's dividend yield for the trailing twelve months is around 3.28%, less than VTEB's 3.35% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MUNI PIMCO Intermediate Municipal Bond Active ETF | 3.28% | 3.26% | 3.50% | 3.09% | 2.13% | 1.62% | 1.92% | 2.44% | 2.38% | 2.37% | 2.37% | 2.20% |
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
MUNI and VTEB have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEB has higher volatility (0.72%) compared to MUNI (0.58%). In terms of maximum drawdown, MUNI dropped -11.15% vs VTEB's -17.00%.
On 10-year performance, MUNI leads with 2.12% vs 2.05% for VTEB. On fees, VTEB is cheaper at 0.03% per year. On volatility, MUNI has been the lower-risk option at 0.58%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, MUNI has performed better with a 2.12% return vs 2.05%. 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 MUNI.
VTEB has the higher dividend yield at 3.35%, compared with 3.28% for MUNI.
They also come from different issuers: PIMCO and Vanguard. Their fees differ too: 0.35% for MUNI and 0.03% for VTEB.
MUNI currently has the higher Sharpe Ratio (2.76 vs 2.60), 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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