SCMB vs. VTEB
SCMB (Schwab Municipal Bond ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds - SCMB tracks the ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross while VTEB tracks the S&P National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 3 years, SCMB returned 3.27%/yr vs 3.54%/yr for VTEB. Their correlation of 0.86 suggests significant overlap in exposure. Both charge a 0.03% expense ratio.
Performance
SCMB vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, SCMB achieves a 1.15% return, which is significantly lower than VTEB's 1.58% return.
SCMB
- 1D
- 0.12%
- 1M
- 0.37%
- YTD
- 1.15%
- 6M
- 1.67%
- 1Y
- 6.64%
- 3Y*
- 3.27%
- 5Y*
- —
- 10Y*
- —
VTEB
- 1D
- 0.16%
- 1M
- 0.51%
- YTD
- 1.58%
- 6M
- 2.07%
- 1Y
- 6.87%
- 3Y*
- 3.54%
- 5Y*
- 0.82%
- 10Y*
- 2.06%
SCMB vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
SCMB Schwab Municipal Bond ETF | 1.15% | 3.78% | 0.91% | 5.86% | 2.88% |
VTEB Vanguard Tax-Exempt Bond ETF | 1.58% | 3.72% | 1.31% | 6.15% | 2.54% |
Correlation
The correlation between SCMB and VTEB is 0.81, 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 | 0.81 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.85 |
Correlation (All Time) Calculated using the full available price history since Oct 12, 2022 | 0.86 |
The correlation between SCMB and VTEB has been stable across timeframes, ranging from 0.81 to 0.86 - a consistent structural relationship.
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Return for Risk
SCMB vs. VTEB — Risk / Return Rank
SCMB
VTEB
SCMB vs. VTEB - Risk-Adjusted Trends 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.
| SCMB | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.26 | ||
| Sortino ratioReturn per unit of downside risk | -0.42 | ||
| Omega ratioGain probability vs. loss probability | 1.49 | 1.56 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 2.29 | 2.55 | -0.26 |
| Martin ratioReturn relative to average drawdown | 7.59 | 9.03 | -1.44 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SCMB | VTEB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.30 | 2.57 | -0.26 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.21 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.39 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.97 | 0.48 | +0.49 |
Drawdowns
SCMB vs. VTEB - Drawdown Comparison
The maximum SCMB drawdown since its inception was -6.13%, 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.
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Drawdown Indicators
| SCMB | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.13% | -17.00% | +10.87% |
Max Drawdown (1Y)Largest decline over 1 year | -2.92% | -2.71% | -0.21% |
Max Drawdown (3Y)Largest decline over 3 years | -5.57% | -5.53% | -0.04% |
Max Drawdown (5Y)Largest decline over 5 years | — | -12.64% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -17.00% | — |
Current DrawdownCurrent decline from peak | -0.79% | -0.40% | -0.39% |
Average DrawdownAverage peak-to-trough decline | -1.32% | -2.32% | +1.00% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.88% | 0.76% | +0.12% |
Volatility
SCMB vs. VTEB - Volatility Comparison
Schwab Municipal Bond ETF (SCMB) has a higher volatility of 1.00% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.91%. This indicates that SCMB'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.
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Volatility by Period
| SCMB | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.00% | 0.91% | +0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 2.17% | 2.02% | +0.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.91% | 2.70% | +0.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.15% | 3.90% | +0.25% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.15% | 5.26% | -1.11% |
SCMB vs. VTEB - Expense Ratio Comparison
Both SCMB and VTEB have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
SCMB vs. VTEB - Dividend Comparison
SCMB's dividend yield for the trailing twelve months is around 3.53%, more than VTEB's 3.35% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCMB Schwab Municipal Bond ETF | 3.53% | 3.36% | 3.34% | 3.10% | 0.59% | 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
SCMB and VTEB have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCMB has higher volatility (1.00%) compared to VTEB (0.91%). In terms of maximum drawdown, SCMB dropped -6.13% vs VTEB's -17.00%.
On 3-year performance, VTEB leads with 3.54% vs 3.27% for SCMB. Both ETFs have the same 0.03% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, VTEB has performed better with a 3.54% return vs 3.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCMB and VTEB have the same expense ratio: 0.03% per year.
SCMB has the higher dividend yield at 3.53%, compared with 3.35% for VTEB.
SCMB tracks ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross, while VTEB tracks S&P National AMT-Free Municipal Bond Index. They also come from different issuers: Charles Schwab and Vanguard.
VTEB currently has the higher Sharpe Ratio (2.57 vs 2.30), 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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