VBIPX vs. VTEB
VBIPX (Vanguard Short-Term Bond Index Fund Institutional Plus) and VTEB (Vanguard Tax-Exempt Bond ETF) are both funds - VBIPX is a Total Bond Market fund managed by Vanguard, while VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index. Over the past 10 years, VBIPX returned 1.83%/yr vs 1.97%/yr for VTEB. A 0.56 correlation means they provide meaningful diversification when combined. VBIPX charges 0.04%/yr vs 0.03%/yr for VTEB.
Performance
VBIPX vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, VBIPX achieves a -0.08% return, which is significantly lower than VTEB's 1.70% return. Over the past 10 years, VBIPX has underperformed VTEB with an annualized return of 1.83%, while VTEB has yielded a comparatively higher 1.97% annualized return.
VBIPX
- 1D
- -0.20%
- 1M
- 0.15%
- YTD
- -0.08%
- 6M
- 0.36%
- 1Y
- 3.06%
- 3Y*
- 4.36%
- 5Y*
- 1.51%
- 10Y*
- 1.83%
VTEB
- 1D
- -0.02%
- 1M
- 1.38%
- YTD
- 1.70%
- 6M
- 1.88%
- 1Y
- 6.65%
- 3Y*
- 3.38%
- 5Y*
- 0.95%
- 10Y*
- 1.97%
VBIPX vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VBIPX Vanguard Short-Term Bond Index Fund Institutional Plus | -0.08% | 6.12% | 3.78% | 4.45% | -5.68% | -1.17% | 4.73% | 4.89% | 1.38% | 1.21% |
VTEB Vanguard Tax-Exempt Bond ETF | 1.70% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
Correlation
The correlation between VBIPX and VTEB is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.57 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.63 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.56 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.57 |
The correlation between VBIPX and VTEB has been stable across timeframes, ranging from 0.56 to 0.63 - a consistent structural relationship.
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Return for Risk
VBIPX vs. VTEB — Risk / Return Rank
VBIPX
VTEB
VBIPX vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Bond Index Fund Institutional Plus (VBIPX) 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.
| VBIPX | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.10 | ||
| Sortino ratioReturn per unit of downside risk | -1.37 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.54 | -0.27 |
| Calmar ratioReturn relative to maximum drawdown | 2.06 | 2.47 | -0.41 |
| Martin ratioReturn relative to average drawdown | 6.33 | 8.69 | -2.37 |
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Drawdowns
VBIPX vs. VTEB - Drawdown Comparison
The maximum VBIPX drawdown since its inception was -8.72%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for VBIPX and VTEB.
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Drawdown Indicators
| VBIPX | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -8.72% | -17.00% | +8.28% |
Max Drawdown (1Y)Largest decline over 1 year | -1.54% | -2.71% | +1.17% |
Max Drawdown (3Y)Largest decline over 3 years | -1.54% | -5.53% | +3.99% |
Max Drawdown (5Y)Largest decline over 5 years | -8.69% | -12.64% | +3.95% |
Max Drawdown (10Y)Largest decline over 10 years | -8.72% | -17.00% | +8.28% |
Current DrawdownCurrent decline from peak | -1.01% | -0.28% | -0.73% |
Average DrawdownAverage peak-to-trough decline | -1.19% | -2.32% | +1.13% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.50% | 0.77% | -0.27% |
Volatility
VBIPX vs. VTEB - Volatility Comparison
Vanguard Short-Term Bond Index Fund Institutional Plus (VBIPX) and Vanguard Tax-Exempt Bond ETF (VTEB) have volatilities of 0.72% and 0.72%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VBIPX | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.72% | 0.72% | 0.00% |
Volatility (6M)Calculated over the trailing 6-month period | 1.65% | 2.06% | -0.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.28% | 2.68% | -0.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.97% | 3.90% | -0.93% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.41% | 5.25% | -2.84% |
VBIPX vs. VTEB - Expense Ratio Comparison
VBIPX has a 0.04% 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
VBIPX vs. VTEB - Dividend Comparison
VBIPX's dividend yield for the trailing twelve months is around 4.04%, more than VTEB's 3.35% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VBIPX Vanguard Short-Term Bond Index Fund Institutional Plus | 4.04% | 3.86% | 3.40% | 2.01% | 1.40% | 1.26% | 1.82% | 2.27% | 2.04% | 1.69% | 1.53% | 1.46% |
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
VBIPX and VTEB have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEB has higher volatility (0.72%) compared to VBIPX (0.72%). In terms of maximum drawdown, VBIPX dropped -8.72% vs VTEB's -17.00%.
VTEB currently has the higher Sharpe Ratio (2.49 vs 1.39), 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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