UTWO vs. VTEC
UTWO (US Treasury 2 Year Note ETF) and VTEC (Vanguard California Tax-Exempt Bond ETF) are both exchange-traded funds - UTWO is a Government Bonds fund tracking the ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross, while VTEC is a Municipal Bonds fund tracking the S&P California AMT-Free Municipal Bond Index. Both are passively managed. Over the past year, UTWO returned 2.51% vs 4.86% for VTEC. Their 0.53 correlation means they have sometimes moved together and sometimes differently. UTWO charges 0.15%/yr vs 0.08%/yr for VTEC.
Performance
UTWO vs. VTEC - Performance Comparison
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Returns By Period
In the year-to-date period, UTWO achieves a 0.78% return, which is significantly higher than VTEC's 0.33% return.
UTWO
- 1D
- 0.13%
- 1M
- 0.18%
- 6M
- 0.66%
- YTD
- 0.78%
- 1Y
- 2.51%
- 3Y*
- 3.92%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 2.96%
VTEC
- 1D
- 0.35%
- 1M
- -1.34%
- 6M
- -0.47%
- YTD
- 0.33%
- 1Y
- 4.86%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 2.29%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $4.51M | $4.39M | $4.62M | |
| $33.00M | $34.10M | $32.23M |
UTWO vs. VTEC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
UTWO US Treasury 2 Year Note ETF | 0.78% | 4.79% | 3.53% |
VTEC Vanguard California Tax-Exempt Bond ETF | 0.33% | 3.98% | 1.48% |
Correlation
The correlation between UTWO and VTEC is 0.56, 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. | 0.56 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2024 | 0.53 |
The correlation between UTWO and VTEC has been stable across timeframes, ranging from 0.53 to 0.56 - a consistent structural relationship.
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Return for Risk
UTWO vs. VTEC — Risk / Return Rank
UTWO
VTEC
UTWO vs. VTEC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for US Treasury 2 Year Note ETF (UTWO) and Vanguard California Tax-Exempt Bond ETF (VTEC). 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.
| UTWO | VTEC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.11 | ||
| Sortino ratioReturn per unit of downside risk | +0.27 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.39 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | 2.80 | 1.71 | +1.09 |
| Martin ratioReturn relative to average drawdown | 9.69 | 5.25 | +4.44 |
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Drawdowns
UTWO vs. VTEC - Drawdown Comparison
The maximum UTWO drawdown since its inception was -2.04%, smaller than the maximum VTEC drawdown of -4.50%. Use the drawdown chart below to compare losses from any high point for UTWO and VTEC.
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Drawdown Indicators
| UTWO | VTEC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -2.04% | -4.50% | +2.46% |
Max Drawdown (1Y)Largest decline over 1 year | -0.90% | -2.85% | +1.95% |
Max Drawdown (3Y)Largest decline over 3 years | -1.08% | — | — |
Current DrawdownCurrent decline from peak | 0.00% | -1.46% | +1.46% |
Average DrawdownAverage peak-to-trough decline | -0.47% | -1.10% | +0.63% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.26% | 0.93% | -0.67% |
Volatility
UTWO vs. VTEC - Volatility Comparison
The current volatility for US Treasury 2 Year Note ETF (UTWO) is 0.40%, while Vanguard California Tax-Exempt Bond ETF (VTEC) has a volatility of 0.93%. This indicates that UTWO experiences smaller price fluctuations and is considered to be less risky than VTEC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| UTWO | VTEC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.40% | 0.93% | -0.53% |
Volatility (6M)Calculated over the trailing 6-month period | 1.07% | 2.09% | -1.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.28% | 2.64% | -1.36% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.05% | 3.69% | -1.64% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.05% | 3.69% | -1.64% |
UTWO vs. VTEC - Expense Ratio Comparison
UTWO has a 0.15% expense ratio, which is higher than VTEC's 0.08% 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
UTWO vs. VTEC - Dividend Comparison
UTWO's dividend yield for the trailing twelve months is around 3.53%, more than VTEC's 3.20% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
UTWO US Treasury 2 Year Note ETF | 3.53% | 3.63% | 4.22% | 4.39% | 1.22% |
VTEC Vanguard California Tax-Exempt Bond ETF | 3.20% | 3.13% | 2.54% | 0.00% | 0.00% |
Frequently Asked Questions
UTWO and VTEC have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEC has higher volatility (0.93%) compared to UTWO (0.40%). In terms of maximum drawdown, UTWO dropped -2.04% vs VTEC's -4.50%.
On 1-year performance, VTEC leads with 4.86% vs 2.51% for UTWO. On fees, VTEC is cheaper at 0.08% per year. On volatility, UTWO has been the lower-risk option at 0.40%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, VTEC has performed better with a 4.86% return vs 2.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTEC is cheaper with a 0.08% expense ratio, compared with 0.15% for UTWO.
UTWO has the higher dividend yield at 3.53%, compared with 3.20% for VTEC.
UTWO is categorized as Government Bonds, while VTEC is Municipal Bonds. UTWO tracks ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross, while VTEC tracks S&P California AMT-Free Municipal Bond Index. They also come from different issuers: US Benchmark Series and Vanguard. Their fees differ too: 0.15% for UTWO and 0.08% for VTEC.
UTWO currently has the higher Sharpe Ratio (1.97 vs 1.85), 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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