SCMB vs. VTEB
Compare and contrast key facts about Schwab Municipal Bond ETF (SCMB) and Vanguard Tax-Exempt Bond ETF (VTEB).
SCMB and VTEB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SCMB is a passively managed fund by Schwab that tracks the performance of the ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross. It was launched on Oct 11, 2022. VTEB is a passively managed fund by Vanguard that tracks the performance of the S&P National AMT-Free Municipal Bond Index. It was launched on Aug 21, 2015. Both SCMB and VTEB are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SCMB or VTEB.
Key characteristics
| SCMB | VTEB | |
|---|---|---|
| YTD Return | 2.55% | 1.20% |
| 1Y Return | 8.27% | 6.89% |
| Sharpe Ratio | 1.99 | 1.73 |
| Sortino Ratio | 2.89 | 2.57 |
| Omega Ratio | 1.40 | 1.34 |
| Calmar Ratio | 3.12 | 0.87 |
| Martin Ratio | 10.69 | 7.60 |
| Ulcer Index | 0.77% | 0.90% |
| Daily Std Dev | 4.15% | 3.97% |
| Max Drawdown | -5.62% | -17.00% |
| Current Drawdown | -1.43% | -1.60% |
Correlation
The correlation between SCMB and VTEB is 0.87, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SCMB vs. VTEB - Performance Comparison
In the year-to-date period, SCMB achieves a 2.55% return, which is significantly higher than VTEB's 1.20% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SCMB vs. VTEB - Expense Ratio Comparison
SCMB has a 0.03% expense ratio, which is lower than VTEB's 0.05% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
SCMB vs. VTEB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Municipal Bond ETF (SCMB) 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.
Dividends
SCMB vs. VTEB - Dividend Comparison
SCMB's dividend yield for the trailing twelve months is around 4.44%, more than VTEB's 3.11% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|
SCMB Schwab Municipal Bond ETF | 4.44% | 4.88% | 0.80% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.11% | 2.79% | 2.09% | 1.65% | 1.99% | 2.30% | 2.25% | 1.96% | 1.66% | 0.58% |
Drawdowns
SCMB vs. VTEB - Drawdown Comparison
The maximum SCMB drawdown since its inception was -5.62%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for SCMB and VTEB. For additional features, visit the drawdowns tool.
Volatility
SCMB vs. VTEB - Volatility Comparison
Schwab Municipal Bond ETF (SCMB) and Vanguard Tax-Exempt Bond ETF (VTEB) have volatilities of 2.02% and 1.98%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.