SMB vs. VTEB
SMB (VanEck Short Muni ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds - SMB tracks the Bloomberg AMT-Free Short Continuous while VTEB tracks the S&P National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 10 years, SMB returned 1.40%/yr vs 1.88%/yr for VTEB. Their 0.47 correlation means their historical movements had little consistent relationship. SMB charges 0.20%/yr vs 0.03%/yr for VTEB.
Performance
SMB vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, SMB achieves a 0.39% return, which is significantly higher than VTEB's 0.31% return. Over the past 10 years, SMB has underperformed VTEB with an annualized return of 1.40%, while VTEB has yielded a comparatively higher 1.88% annualized return.
SMB
- 1D
- -0.06%
- 1M
- -0.43%
- 6M
- 0.34%
- YTD
- 0.39%
- 1Y
- 1.99%
- 3Y*
- 3.35%
- 5Y*
- 1.08%
- 10Y*
- 1.40%
- ALL TIME*
- 2.01%
VTEB
- 1D
- -0.10%
- 1M
- -1.84%
- 6M
- -0.23%
- YTD
- 0.31%
- 1Y
- 4.77%
- 3Y*
- 2.92%
- 5Y*
- 0.53%
- 10Y*
- 1.88%
- ALL TIME*
- 2.28%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $770.61K | $950.10K | $1.02M | |
| $377.87M | $352.76M | $360.69M |
SMB vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SMB VanEck Short Muni ETF | 0.39% | 4.61% | 2.41% | 3.14% | -4.50% | 0.12% | 3.30% | 4.54% | 1.86% | 1.16% |
VTEB Vanguard Tax-Exempt Bond ETF | 0.31% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
Correlation
The correlation between SMB and VTEB is 0.57, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.57 |
Correlation (3Y) Balances recent behavior with more history. | 0.61 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.59 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.48 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.47 |
The correlation between SMB and VTEB shifts across timeframes, from 0.47 (all time) to 0.61 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
SMB vs. VTEB — Risk / Return Rank
SMB
VTEB
SMB vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for VanEck Short Muni ETF (SMB) 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.
| SMB | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.44 | ||
| Sortino ratioReturn per unit of downside risk | -0.62 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.41 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 2.11 | 2.00 | +0.11 |
| Martin ratioReturn relative to average drawdown | 5.77 | 6.62 | -0.85 |
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Drawdowns
SMB vs. VTEB - Drawdown Comparison
The maximum SMB drawdown since its inception was -12.64%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for SMB and VTEB.
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Drawdown Indicators
| SMB | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.64% | -17.00% | +4.36% |
Max Drawdown (1Y)Largest decline over 1 year | -1.17% | -2.71% | +1.54% |
Max Drawdown (3Y)Largest decline over 3 years | -1.80% | -4.76% | +2.96% |
Max Drawdown (5Y)Largest decline over 5 years | -7.47% | -12.56% | +5.09% |
Max Drawdown (10Y)Largest decline over 10 years | -12.64% | -17.00% | +4.36% |
Current DrawdownCurrent decline from peak | -0.49% | -1.86% | +1.37% |
Average DrawdownAverage peak-to-trough decline | -1.13% | -2.30% | +1.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.43% | 0.82% | -0.39% |
Volatility
SMB vs. VTEB - Volatility Comparison
The current volatility for VanEck Short Muni ETF (SMB) is 0.42%, while Vanguard Tax-Exempt Bond ETF (VTEB) has a volatility of 0.88%. This indicates that SMB 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
| SMB | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.42% | 0.88% | -0.46% |
Volatility (6M)Calculated over the trailing 6-month period | 1.06% | 2.22% | -1.16% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.64% | 2.79% | -1.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.48% | 3.92% | -1.44% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.25% | 5.25% | -1.00% |
SMB vs. VTEB - Expense Ratio Comparison
SMB has a 0.20% 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
SMB vs. VTEB - Dividend Comparison
SMB's dividend yield for the trailing twelve months is around 2.77%, less than VTEB's 3.42% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SMB VanEck Short Muni ETF | 2.53% | 2.63% | 2.38% | 1.83% | 1.32% | 1.24% | 1.50% | 1.58% | 1.49% | 1.23% | 1.12% | 1.13% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.14% | 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
SMB and VTEB have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEB has higher volatility (0.88%) compared to SMB (0.42%). In terms of maximum drawdown, SMB dropped -12.64% vs VTEB's -17.00%.
On 10-year performance, VTEB leads with 1.88% vs 1.40% for SMB. On fees, VTEB is cheaper at 0.03% per year. On volatility, SMB has been the lower-risk option at 0.42%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VTEB has performed better with a 1.88% return vs 1.40%. 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 0.20% for SMB.
VTEB has the higher dividend yield at 3.14%, compared with 2.53% for SMB.
SMB tracks Bloomberg AMT-Free Short Continuous, while VTEB tracks S&P National AMT-Free Municipal Bond Index. They also come from different issuers: VanEck and Vanguard. Their fees differ too: 0.20% for SMB and 0.03% for VTEB.
VTEB currently has the higher Sharpe Ratio (1.95 vs 1.51), 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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