NJTFX vs. VTEB

Last updated Jun 4, 2026

NJTFX (T. Rowe Price New Jersey Tax Free Bond Fund) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds. Over the past 10 years, NJTFX returned 2.49%/yr vs 2.09%/yr for VTEB. A 0.67 correlation means they provide meaningful diversification when combined. NJTFX charges 0.56%/yr vs 0.05%/yr for VTEB.

Performance

NJTFX vs. VTEB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price New Jersey Tax Free Bond Fund (NJTFX) 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, NJTFX achieves a 1.94% return, which is significantly higher than VTEB's 1.46% return. Over the past 10 years, NJTFX has outperformed VTEB with an annualized return of 2.49%, while VTEB has yielded a comparatively lower 2.09% annualized return.

NJTFX

• 1D: 0.17%
• 1M: 0.73%
• YTD: 1.94%
• 6M: 2.72%
• 1Y: 9.51%
• 3Y*: 4.92%
• 5Y*: 1.57%
• 10Y*: 2.49%

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%

*Multi-year figures are annualized to reflect compound growth (CAGR)

NJTFX vs. VTEB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NJTFX T. Rowe Price New Jersey Tax Free Bond Fund	1.94%	5.00%	4.01%	7.17%	-10.24%	2.67%	4.73%	6.65%	1.31%	5.30%
VTEB Vanguard Tax-Exempt Bond ETF	1.46%	3.72%	1.31%	6.15%	-7.99%	1.14%	5.19%	7.35%	1.04%	4.87%

Correlation

The correlation between NJTFX and VTEB is 0.65, 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	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since Aug 26, 2015	0.67

The correlation between NJTFX and VTEB has been stable across timeframes, ranging from 0.65 to 0.72 - a consistent structural relationship.

Return for Risk

NJTFX vs. VTEB — Risk / Return Rank

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

NJTFX

NJTFX Risk / Return Rank: 88
NJTFX Sharpe Ratio Rank: 96
NJTFX Sortino Ratio Rank: 97
NJTFX Omega Ratio Rank: 97
NJTFX Calmar Ratio Rank: 80
NJTFX Martin Ratio Rank: 72

VTEB

VTEB Risk / Return Rank: 72
VTEB Sharpe Ratio Rank: 80
VTEB Sortino Ratio Rank: 85
VTEB Omega Ratio Rank: 89
VTEB Calmar Ratio Rank: 52
VTEB Martin Ratio Rank: 54

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.

NJTFX vs. VTEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price New Jersey Tax Free Bond Fund (NJTFX) 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.

	NJTFX	VTEB	Difference
Sharpe ratio: Return per unit of total volatility	3.50	2.64	+0.86
Sortino ratio: Return per unit of downside risk	5.65	3.92	+1.73
Omega ratio: Gain probability vs. loss probability	1.92	1.58	+0.34
Calmar ratio: Return relative to maximum drawdown	3.64	2.65	+1.00
Martin ratio: Return relative to average drawdown	13.78	9.41	+4.37
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NJTFX vs. VTEB - Sharpe Ratio Comparison

The current NJTFX Sharpe Ratio is 3.50, which is higher than the VTEB Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of NJTFX 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

	NJTFX	VTEB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.50	2.64	+0.86
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.40	0.23	+0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.64	0.40	+0.25
Sharpe Ratio (All Time) Calculated using the full available price history	1.27	0.47	+0.80

Drawdowns

NJTFX vs. VTEB - Drawdown Comparison

The maximum NJTFX drawdown since its inception was -15.19%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for NJTFX and VTEB.

Drawdown Indicators

	NJTFX	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	-15.19%	-17.00%	+1.81%
Max Drawdown (1Y) Largest decline over 1 year	-2.59%	-2.71%	+0.12%
Max Drawdown (3Y) Largest decline over 3 years	-5.69%	-5.53%	-0.16%
Max Drawdown (5Y) Largest decline over 5 years	-15.19%	-12.64%	-2.55%
Max Drawdown (10Y) Largest decline over 10 years	-15.19%	-17.00%	+1.81%
Current Drawdown Current decline from peak	-0.01%	-0.52%	+0.51%
Average Drawdown Average peak-to-trough decline	-1.81%	-2.33%	+0.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.68%	0.76%	-0.08%

Volatility

NJTFX vs. VTEB - Volatility Comparison

T. Rowe Price New Jersey Tax Free Bond Fund (NJTFX) has a higher volatility of 1.06% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.89%. This indicates that NJTFX'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

	NJTFX	VTEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.06%	0.89%	+0.17%
Volatility (6M) Calculated over the trailing 6-month period	1.98%	2.01%	-0.03%
Volatility (1Y) Calculated over the trailing 1-year period	2.72%	2.72%	0.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.99%	3.90%	+0.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.87%	5.26%	-1.39%

NJTFX vs. VTEB - Expense Ratio Comparison

NJTFX has a 0.56% expense ratio, which is higher than VTEB's 0.05% expense ratio.

Dividends

NJTFX vs. VTEB - Dividend Comparison

NJTFX's dividend yield for the trailing twelve months is around 4.45%, more than VTEB's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NJTFX T. Rowe Price New Jersey Tax Free Bond Fund	4.45%	4.44%	4.27%	3.27%	2.03%	2.56%	2.79%	2.84%	3.13%	3.13%	3.26%	3.36%
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 NJTFX and VTEB in my portfolio?

NJTFX and VTEB have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NJTFX or VTEB?

NJTFX has higher volatility (1.06%) compared to VTEB (0.89%). In terms of maximum drawdown, NJTFX dropped -15.19% vs VTEB's -17.00%.

Which has better risk-adjusted returns?

NJTFX currently has the higher Sharpe Ratio (3.50 vs 2.64), 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.