TAXS vs. VTEB

Last updated Jul 5, 2026

TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds - TAXS tracks the ICE Short Term Focused Municipal Bond Index while VTEB tracks the S&P National AMT-Free Municipal Bond Index. Both are passively managed. A 0.64 correlation means they provide meaningful diversification when combined. TAXS charges 0.05%/yr vs 0.03%/yr for VTEB.

Performance

TAXS vs. VTEB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS) and Vanguard Tax-Exempt Bond ETF (VTEB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAXS achieves a 1.20% return, which is significantly lower than VTEB's 2.19% return.

TAXS

• 1D: 0.07%
• 1M: 0.20%
• 6M: 1.12%
• YTD: 1.20%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VTEB

• 1D: 0.12%
• 1M: 0.58%
• 6M: 2.03%
• YTD: 2.19%
• 1Y: 6.78%
• 3Y*: 3.55%
• 5Y*: 0.98%
• 10Y*: 2.02%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TAXS vs. VTEB - Yearly Performance Comparison

	2026 (YTD)	2025
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.20%	1.22%
VTEB Vanguard Tax-Exempt Bond ETF	2.19%	4.32%

Correlation

The correlation between TAXS and VTEB is 0.64, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025	0.64

Return for Risk

TAXS vs. VTEB — Risk / Return Rank

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

TAXS

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

VTEB

VTEB Risk / Return Rank: 80
VTEB Sharpe Ratio Rank: 91
VTEB Sortino Ratio Rank: 92
VTEB Omega Ratio Rank: 94
VTEB Calmar Ratio Rank: 61
VTEB Martin Ratio Rank: 60

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.

TAXS vs. VTEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS) 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.

	TAXS	VTEB	Difference
Sharpe ratio: Return per unit of total volatility	—	2.52	—
Sortino ratio: Return per unit of downside risk	—	3.73	—
Omega ratio: Gain probability vs. loss probability	—	1.55	—
Calmar ratio: Return relative to maximum drawdown	—	2.50	—
Martin ratio: Return relative to average drawdown	—	8.80	—

Drawdowns

TAXS vs. VTEB - Drawdown Comparison

The maximum TAXS drawdown since its inception was -0.84%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for TAXS and VTEB.

Drawdown Indicators

	TAXS	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	-0.84%	-17.00%	+16.16%
Max Drawdown (1Y) Largest decline over 1 year	—	-2.71%	—
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	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.22%	-2.31%	+2.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.77%	—

Volatility

Volatility by Period

	TAXS	VTEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.60%	—
Volatility (6M) Calculated over the trailing 6-month period	—	2.07%	—
Volatility (1Y) Calculated over the trailing 1-year period	0.98%	2.69%	-1.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.98%	3.90%	-2.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.98%	5.25%	-4.27%

TAXS vs. VTEB - Expense Ratio Comparison

TAXS has a 0.05% 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

TAXS vs. VTEB - Dividend Comparison

TAXS's dividend yield for the trailing twelve months is around 2.03%, less than VTEB's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	2.03%	0.74%	0.00%	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 TAXS and VTEB in my portfolio?

TAXS and VTEB have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, TAXS or VTEB?

On fees, VTEB is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, TAXS or VTEB?

VTEB is cheaper with a 0.03% expense ratio, compared with 0.05% for TAXS.

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

VTEB has the higher dividend yield at 3.35%, compared with 2.03% for TAXS.

What is the main difference between TAXS and VTEB?

TAXS tracks ICE Short Term Focused Municipal Bond Index, while VTEB tracks S&P National AMT-Free Municipal Bond Index. They also come from different issuers: Northern Trust and Vanguard. Their fees differ too: 0.05% for TAXS and 0.03% for VTEB.