VBK vs. VTEB
VBK (Vanguard Small-Cap Growth ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both exchange-traded funds - VBK is a Small Cap Growth Equities fund tracking the CRSP US Small Cap Growth Index, while VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 10 years, VBK returned 11.82%/yr vs 2.03%/yr for VTEB. At a 0.06 correlation, their price movements are largely independent. VBK charges 0.05%/yr vs 0.03%/yr for VTEB.
Performance
VBK vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, VBK achieves a 16.25% return, which is significantly higher than VTEB's 1.44% return. Over the past 10 years, VBK has outperformed VTEB with an annualized return of 11.82%, while VTEB has yielded a comparatively lower 2.03% annualized return.
VBK
- 1D
- 0.33%
- 1M
- 3.93%
- YTD
- 16.25%
- 6M
- 14.67%
- 1Y
- 31.85%
- 3Y*
- 16.10%
- 5Y*
- 4.87%
- 10Y*
- 11.82%
VTEB
- 1D
- -0.08%
- 1M
- 1.22%
- YTD
- 1.44%
- 6M
- 1.95%
- 1Y
- 6.57%
- 3Y*
- 3.44%
- 5Y*
- 0.80%
- 10Y*
- 2.03%
VBK vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VBK Vanguard Small-Cap Growth ETF | 16.25% | 8.50% | 16.50% | 21.45% | -28.44% | 5.66% | 35.44% | 32.75% | -5.70% | 21.87% |
VTEB Vanguard Tax-Exempt Bond ETF | 1.44% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
Correlation
The correlation between VBK and VTEB is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.24 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.19 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.08 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.06 |
The correlation between VBK and VTEB shifts across timeframes, from 0.06 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VBK vs. VTEB — Risk / Return Rank
VBK
VTEB
VBK vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Growth ETF (VBK) 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.
| VBK | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.88 | ||
| Sortino ratioReturn per unit of downside risk | -1.40 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.51 | -0.26 |
| Calmar ratioReturn relative to maximum drawdown | 2.62 | 2.35 | +0.27 |
| Martin ratioReturn relative to average drawdown | 9.82 | 8.30 | +1.52 |
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Drawdowns
VBK vs. VTEB - Drawdown Comparison
The maximum VBK drawdown since its inception was -58.68%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for VBK and VTEB.
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Drawdown Indicators
| VBK | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -58.68% | -17.00% | -41.68% |
Max Drawdown (1Y)Largest decline over 1 year | -11.44% | -2.71% | -8.73% |
Max Drawdown (3Y)Largest decline over 3 years | -27.54% | -5.53% | -22.01% |
Max Drawdown (5Y)Largest decline over 5 years | -38.39% | -12.64% | -25.75% |
Max Drawdown (10Y)Largest decline over 10 years | -38.70% | -17.00% | -21.70% |
Current DrawdownCurrent decline from peak | -2.04% | -0.54% | -1.50% |
Average DrawdownAverage peak-to-trough decline | -10.14% | -2.32% | -7.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.05% | 0.77% | +2.28% |
Volatility
VBK vs. VTEB - Volatility Comparison
Vanguard Small-Cap Growth ETF (VBK) has a higher volatility of 7.31% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.93%. This indicates that VBK's price experiences larger fluctuations and is considered to be riskier than VTEB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VBK | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.31% | 0.93% | +6.38% |
Volatility (6M)Calculated over the trailing 6-month period | 15.61% | 2.04% | +13.57% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.96% | 2.70% | +17.26% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.59% | 3.90% | +19.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.92% | 5.26% | +17.66% |
VBK vs. VTEB - Expense Ratio Comparison
VBK 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
VBK vs. VTEB - Dividend Comparison
VBK's dividend yield for the trailing twelve months is around 0.45%, less than VTEB's 3.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VBK Vanguard Small-Cap Growth ETF | 0.45% | 0.54% | 0.54% | 0.68% | 0.55% | 0.36% | 0.44% | 0.57% | 0.79% | 0.82% | 1.08% | 0.98% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.36% | 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
VBK and VTEB have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VBK has higher volatility (7.31%) compared to VTEB (0.93%). In terms of maximum drawdown, VBK dropped -58.68% vs VTEB's -17.00%.
On 10-year performance, VBK leads with 11.82% vs 2.03% for VTEB. On fees, VTEB is cheaper at 0.03% per year. On volatility, VTEB has been the lower-risk option at 0.93%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VBK has performed better with a 11.82% return vs 2.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTEB is cheaper with a 0.03% expense ratio, compared with 0.05% for VBK.
VTEB has the higher dividend yield at 3.36%, compared with 0.45% for VBK.
VBK is categorized as Small Cap Growth Equities, while VTEB is Municipal Bonds. VBK tracks CRSP US Small Cap Growth Index, while VTEB tracks S&P National AMT-Free Municipal Bond Index. Their fees differ too: 0.05% for VBK and 0.03% for VTEB.
VTEB currently has the higher Sharpe Ratio (2.38 vs 1.50), 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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