TMNL vs. VTEB

Last updated Jun 5, 2026

TMNL (T. Rowe Price Long Municipal Income ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds. TMNL is actively managed, while VTEB is passively managed. A 0.78 correlation means they provide meaningful diversification when combined. TMNL charges 0.26%/yr vs 0.03%/yr for VTEB.

Performance

TMNL vs. VTEB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Long Municipal Income ETF (TMNL) 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, TMNL achieves a 2.54% return, which is significantly higher than VTEB's 1.60% return.

TMNL

• 1D: 0.25%
• 1M: 0.96%
• YTD: 2.54%
• 6M: 2.89%
• 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)

TMNL vs. VTEB - Yearly Performance Comparison

	2026 (YTD)	2025
TMNL T. Rowe Price Long Municipal Income ETF	2.54%	0.34%
VTEB Vanguard Tax-Exempt Bond ETF	1.60%	0.37%

Correlation

The correlation between TMNL and VTEB is 0.78, 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 Nov 21, 2025	0.78

Return for Risk

TMNL 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.

TMNL vs. VTEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Long Municipal Income ETF (TMNL) 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

	TMNL	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	1.22	0.48	+0.75

Drawdowns

TMNL vs. VTEB - Drawdown Comparison

The maximum TMNL drawdown since its inception was -2.94%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for TMNL and VTEB.

Drawdown Indicators

	TMNL	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	-2.94%	-17.00%	+14.06%
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%	-0.38%	+0.38%
Average Drawdown Average peak-to-trough decline	-0.59%	-2.33%	+1.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.76%	—

Volatility

Volatility by Period

	TMNL	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	4.55%	2.72%	+1.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.55%	3.90%	+0.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.55%	5.26%	-0.71%

TMNL vs. VTEB - Expense Ratio Comparison

TMNL has a 0.26% 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

TMNL vs. VTEB - Dividend Comparison

TMNL's dividend yield for the trailing twelve months is around 2.12%, less than VTEB's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TMNL T. Rowe Price Long Municipal Income ETF	2.12%	0.39%	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 TMNL and VTEB in my portfolio?

TMNL 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.

Which ETF is better, TMNL 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, TMNL or VTEB?

VTEB is cheaper with a 0.03% expense ratio, compared with 0.26% for TMNL.

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

VTEB has the higher dividend yield at 3.35%, compared with 2.12% for TMNL.

What is the main difference between TMNL and VTEB?

They also come from different issuers: T. Rowe Price and Vanguard. Their fees differ too: 0.26% for TMNL and 0.03% for VTEB.