TAXF vs. VTEB
TAXF (American Century Diversified Municipal Bond ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds. TAXF is actively managed, while VTEB is passively managed. Over the past 5 years, TAXF returned 0.68%/yr vs 0.53%/yr for VTEB. Their 0.78 correlation means they have sometimes moved together and sometimes differently. TAXF charges 0.29%/yr vs 0.03%/yr for VTEB.
Performance
TAXF vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, TAXF achieves a 0.84% return, which is significantly higher than VTEB's 0.31% return.
TAXF
- 1D
- -0.12%
- 1M
- -1.76%
- 6M
- -0.01%
- YTD
- 0.84%
- 1Y
- 5.48%
- 3Y*
- 3.54%
- 5Y*
- 0.68%
- 10Y*
- —
- ALL TIME*
- 2.67%
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) |
|---|---|---|---|
| $2.10M | $2.57M | $2.35M | |
| $377.87M | $352.76M | $360.69M |
TAXF vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
TAXF American Century Diversified Municipal Bond ETF | 0.84% | 4.30% | 1.74% | 7.33% | -9.64% | 2.72% | 5.55% | 8.75% | 0.60% |
VTEB Vanguard Tax-Exempt Bond ETF | 0.31% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.53% |
Correlation
The correlation between TAXF and VTEB is 0.78, 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. | 0.78 |
Correlation (3Y) Balances recent behavior with more history. | 0.82 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.82 |
Correlation (All Time) Calculated using the full available price history since Sep 12, 2018 | 0.78 |
The correlation between TAXF and VTEB has been stable across timeframes, ranging from 0.78 to 0.82 - a consistent structural relationship.
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Return for Risk
TAXF vs. VTEB — Risk / Return Rank
TAXF
VTEB
TAXF vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Century Diversified Municipal Bond ETF (TAXF) 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.
| TAXF | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.06 | ||
| Sortino ratioReturn per unit of downside risk | -0.01 | ||
| Omega ratioGain probability vs. loss probability | 1.43 | 1.41 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 2.15 | 2.00 | +0.15 |
| Martin ratioReturn relative to average drawdown | 7.30 | 6.62 | +0.68 |
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Drawdowns
TAXF vs. VTEB - Drawdown Comparison
The maximum TAXF drawdown since its inception was -13.93%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for TAXF and VTEB.
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Drawdown Indicators
| TAXF | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.93% | -17.00% | +3.07% |
Max Drawdown (1Y)Largest decline over 1 year | -2.93% | -2.71% | -0.22% |
Max Drawdown (3Y)Largest decline over 3 years | -5.53% | -4.76% | -0.77% |
Max Drawdown (5Y)Largest decline over 5 years | -13.83% | -12.59% | -1.24% |
Max Drawdown (10Y)Largest decline over 10 years | — | -17.00% | — |
Current DrawdownCurrent decline from peak | -1.80% | -1.86% | +0.06% |
Average DrawdownAverage peak-to-trough decline | -3.09% | -2.30% | -0.79% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.86% | 0.82% | +0.04% |
Volatility
TAXF vs. VTEB - Volatility Comparison
American Century Diversified Municipal Bond ETF (TAXF) has a higher volatility of 1.22% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.88%. This indicates that TAXF'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
| TAXF | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.22% | 0.88% | +0.34% |
Volatility (6M)Calculated over the trailing 6-month period | 2.53% | 2.22% | +0.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.14% | 2.79% | +0.35% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.24% | 3.92% | +0.32% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.63% | 5.25% | -0.62% |
TAXF vs. VTEB - Expense Ratio Comparison
TAXF has a 0.29% expense ratio, which is higher than VTEB's 0.03% expense ratio.
Dividends
TAXF vs. VTEB - Dividend Comparison
TAXF's dividend yield for the trailing twelve months is around 3.84%, more than VTEB's 3.42% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TAXF American Century Diversified Municipal Bond ETF | 3.51% | 3.68% | 3.38% | 2.93% | 2.05% | 1.58% | 2.13% | 2.64% | 0.69% | 0.00% | 0.00% | 0.00% |
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
TAXF and VTEB have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TAXF has higher volatility (1.22%) compared to VTEB (0.88%). In terms of maximum drawdown, TAXF dropped -13.93% vs VTEB's -17.00%.
On 5-year performance, TAXF leads with 0.68% vs 0.53% for VTEB. On fees, VTEB is cheaper at 0.03% per year. On volatility, VTEB has been the lower-risk option at 0.88%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, TAXF has performed better with a 0.68% return vs 0.53%. 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 0.29% for TAXF.
TAXF has the higher dividend yield at 3.51%, compared with 3.14% for VTEB.
They also come from different issuers: American Century and Vanguard. Their fees differ too: 0.29% for TAXF and 0.03% for VTEB.
TAXF currently has the higher Sharpe Ratio (2.01 vs 1.95), 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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