VCIT vs. VTEB
Compare and contrast key facts about Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and Vanguard Tax-Exempt Bond ETF (VTEB).
VCIT and VTEB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VCIT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 5-10 Year Corp Index. It was launched on Nov 19, 2009. VTEB is a passively managed fund by Vanguard that tracks the performance of the S&P National AMT-Free Municipal Bond Index. It was launched on Aug 21, 2015. Both VCIT and VTEB are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VCIT or VTEB.
Key characteristics
| VCIT | VTEB | |
|---|---|---|
| YTD Return | -2.50% | -1.72% |
| 1Y Return | 2.08% | 2.09% |
| 3Y Return (Ann) | -2.55% | -1.11% |
| 5Y Return (Ann) | 1.12% | 1.25% |
| Sharpe Ratio | 0.23 | 0.44 |
| Daily Std Dev | 7.09% | 4.32% |
| Max Drawdown | -20.56% | -17.00% |
| Current Drawdown | -10.42% | -4.44% |
Correlation
The correlation between VCIT and VTEB is 0.61, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
VCIT vs. VTEB - Performance Comparison
In the year-to-date period, VCIT achieves a -2.50% return, which is significantly lower than VTEB's -1.72% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VCIT vs. VTEB - Expense Ratio Comparison
VCIT has a 0.04% expense ratio, which is lower than VTEB's 0.05% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
VCIT vs. VTEB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) 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.
Dividends
VCIT vs. VTEB - Dividend Comparison
VCIT's dividend yield for the trailing twelve months is around 4.05%, more than VTEB's 2.95% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.05% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% | 3.34% | 4.00% |
VTEB Vanguard Tax-Exempt Bond ETF | 2.95% | 2.79% | 2.09% | 1.64% | 1.99% | 2.30% | 2.25% | 1.96% | 1.66% | 0.58% | 0.00% | 0.00% |
Drawdowns
VCIT vs. VTEB - Drawdown Comparison
The maximum VCIT drawdown since its inception was -20.56%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for VCIT and VTEB. For additional features, visit the drawdowns tool.
Volatility
VCIT vs. VTEB - Volatility Comparison
Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a higher volatility of 1.84% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 1.06%. This indicates that VCIT'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.