PMIO vs. VTEB

Last updated Jun 5, 2026

PMIO (PGIM Municipal Income Opportunities ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds. PMIO is actively managed, while VTEB is passively managed. Over the past year, PMIO returned 6.54% vs 7.03% for VTEB. Their correlation of 0.83 suggests significant overlap in exposure. PMIO charges 0.25%/yr vs 0.03%/yr for VTEB.

Performance

PMIO vs. VTEB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM Municipal Income Opportunities ETF (PMIO) and Vanguard Tax-Exempt Bond ETF (VTEB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with PMIO having a 1.63% return and VTEB slightly lower at 1.60%.

PMIO

• 1D: 0.09%
• 1M: 0.85%
• YTD: 1.63%
• 6M: 1.99%
• 1Y: 6.54%
• 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)

PMIO vs. VTEB - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PMIO PGIM Municipal Income Opportunities ETF	1.63%	5.30%	2.41%
VTEB Vanguard Tax-Exempt Bond ETF	1.60%	3.72%	1.89%

Correlation

The correlation between PMIO and VTEB is 0.80, 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	0.80
Correlation (All Time) Calculated using the full available price history since Jul 1, 2024	0.83

The correlation between PMIO and VTEB has been stable across timeframes, ranging from 0.80 to 0.83 - a consistent structural relationship.

Return for Risk

PMIO vs. VTEB — Risk / Return Rank

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

PMIO

PMIO Risk / Return Rank: 78
PMIO Sharpe Ratio Rank: 89
PMIO Sortino Ratio Rank: 92
PMIO Omega Ratio Rank: 94
PMIO Calmar Ratio Rank: 60
PMIO Martin Ratio Rank: 57

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.

PMIO vs. VTEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM Municipal Income Opportunities ETF (PMIO) 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.

	PMIO	VTEB	Difference
Sharpe ratio: Return per unit of total volatility	2.95	2.61	+0.34
Sortino ratio: Return per unit of downside risk	4.39	3.86	+0.53
Omega ratio: Gain probability vs. loss probability	1.67	1.57	+0.10
Calmar ratio: Return relative to maximum drawdown	2.93	2.60	+0.33
Martin ratio: Return relative to average drawdown	9.76	9.25	+0.50
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PMIO vs. VTEB - Sharpe Ratio Comparison

The current PMIO Sharpe Ratio is 2.95, which is comparable to the VTEB Sharpe Ratio of 2.61. The chart below compares the historical Sharpe Ratios of PMIO 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

	PMIO	VTEB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.95	2.61	+0.34
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	1.59	0.48	+1.11

Drawdowns

PMIO vs. VTEB - Drawdown Comparison

The maximum PMIO drawdown since its inception was -3.39%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for PMIO and VTEB.

Drawdown Indicators

	PMIO	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	-3.39%	-17.00%	+13.61%
Max Drawdown (1Y) Largest decline over 1 year	-2.24%	-2.71%	+0.47%
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	-0.39%	-0.38%	-0.01%
Average Drawdown Average peak-to-trough decline	-0.66%	-2.33%	+1.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.67%	0.76%	-0.09%

Volatility

PMIO vs. VTEB - Volatility Comparison

The current volatility for PGIM Municipal Income Opportunities ETF (PMIO) is 0.73%, while Vanguard Tax-Exempt Bond ETF (VTEB) has a volatility of 0.90%. This indicates that PMIO 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.

Volatility by Period

	PMIO	VTEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.73%	0.90%	-0.17%
Volatility (6M) Calculated over the trailing 6-month period	1.58%	2.01%	-0.43%
Volatility (1Y) Calculated over the trailing 1-year period	2.25%	2.72%	-0.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.08%	3.90%	-0.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.08%	5.26%	-2.18%

PMIO vs. VTEB - Expense Ratio Comparison

PMIO has a 0.25% expense ratio, which is higher than VTEB's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

PMIO vs. VTEB - Dividend Comparison

PMIO's dividend yield for the trailing twelve months is around 3.92%, more than VTEB's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PMIO PGIM Municipal Income Opportunities ETF	3.92%	4.00%	2.11%	0.00%	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 PMIO and VTEB in my portfolio?

PMIO and VTEB have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PMIO or VTEB?

VTEB has higher volatility (0.90%) compared to PMIO (0.73%). In terms of maximum drawdown, PMIO dropped -3.39% vs VTEB's -17.00%.

Which ETF is better, PMIO or VTEB?

On 1-year performance, VTEB leads with 7.03% vs 6.54% for PMIO. On fees, VTEB is cheaper at 0.03% per year. On volatility, PMIO has been the lower-risk option at 0.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PMIO or VTEB?

Over the 1-year period, VTEB has performed better with a 7.03% return vs 6.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PMIO or VTEB?

VTEB is cheaper with a 0.03% expense ratio, compared with 0.25% for PMIO.

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

PMIO has the higher dividend yield at 3.92%, compared with 3.35% for VTEB.

What is the main difference between PMIO and VTEB?

They also come from different issuers: PGIM and Vanguard. Their fees differ too: 0.25% for PMIO and 0.03% for VTEB.

Which has better risk-adjusted returns?

PMIO currently has the higher Sharpe Ratio (2.95 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.