TAXT vs. VTEB

Last updated Jun 5, 2026

TAXT (Northern Trust Tax-Exempt Bond ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds - TAXT tracks the ICE Focused Municipal Bond Index while VTEB tracks the S&P National AMT-Free Municipal Bond Index. Both are passively managed. Their correlation of 0.84 suggests significant overlap in exposure. TAXT charges 0.05%/yr vs 0.03%/yr for VTEB.

Performance

TAXT vs. VTEB - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with TAXT having a 1.59% return and VTEB slightly higher at 1.60%.

TAXT

• 1D: 0.11%
• 1M: 0.76%
• YTD: 1.59%
• 6M: 2.09%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VTEB

• 1D: 0.14%
• 1M: 0.75%
• YTD: 1.60%
• 6M: 2.05%
• 1Y: 7.03%
• 3Y*: 3.54%
• 5Y*: 0.91%
• 10Y*: 2.12%

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

TAXT vs. VTEB - Yearly Performance Comparison

	2026 (YTD)	2025
TAXT Northern Trust Tax-Exempt Bond ETF	1.59%	3.96%
VTEB Vanguard Tax-Exempt Bond ETF	1.60%	4.32%

Correlation

The correlation between TAXT and VTEB is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 20, 2025	0.84

Return for Risk

TAXT vs. VTEB — Risk / Return Rank

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

VTEB

VTEB Risk / Return Rank: 73
VTEB Sharpe Ratio Rank: 81
VTEB Sortino Ratio Rank: 87
VTEB Omega Ratio Rank: 90
VTEB Calmar Ratio Rank: 54
VTEB Martin Ratio Rank: 55

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.

TAXT vs. VTEB - Risk-Adjusted Trends Comparison

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

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

Sharpe Ratios by Period

	TAXT	VTEB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.61	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.23	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.40	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.84	0.48	+2.37

Drawdowns

TAXT vs. VTEB - Drawdown Comparison

The maximum TAXT drawdown since its inception was -2.49%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for TAXT and VTEB.

Drawdown Indicators

	TAXT	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	-2.49%	-17.00%	+14.51%
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	-0.47%	-0.38%	-0.09%
Average Drawdown Average peak-to-trough decline	-0.47%	-2.33%	+1.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.76%	—

Volatility

Volatility by Period

	TAXT	VTEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.90%	—
Volatility (6M) Calculated over the trailing 6-month period	—	2.01%	—
Volatility (1Y) Calculated over the trailing 1-year period	2.53%	2.72%	-0.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.53%	3.90%	-1.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.53%	5.26%	-2.73%

TAXT vs. VTEB - Expense Ratio Comparison

TAXT 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

TAXT vs. VTEB - Dividend Comparison

TAXT's dividend yield for the trailing twelve months is around 2.54%, less than VTEB's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TAXT Northern Trust Tax-Exempt Bond ETF	2.54%	1.23%	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 TAXT and VTEB in my portfolio?

TAXT and VTEB have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, TAXT 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, TAXT or VTEB?

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

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

VTEB has the higher dividend yield at 3.35%, compared with 2.54% for TAXT.

What is the main difference between TAXT and VTEB?

TAXT tracks ICE 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 TAXT and 0.03% for VTEB.