VCORX vs. VTEB
VCORX (Vanguard Core Bond Fund Investor Shares) and VTEB (Vanguard Tax-Exempt Bond ETF) are both funds - VCORX 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, VCORX returned 2.11%/yr vs 1.97%/yr for VTEB. A 0.68 correlation means they provide meaningful diversification when combined. VCORX charges 0.20%/yr vs 0.03%/yr for VTEB.
Performance
VCORX vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, VCORX achieves a 0.50% return, which is significantly lower than VTEB's 1.70% return. Over the past 10 years, VCORX has outperformed VTEB with an annualized return of 2.11%, while VTEB has yielded a comparatively lower 1.97% annualized return.
VCORX
- 1D
- -0.22%
- 1M
- 0.60%
- YTD
- 0.50%
- 6M
- 0.61%
- 1Y
- 4.57%
- 3Y*
- 4.57%
- 5Y*
- 0.34%
- 10Y*
- 2.11%
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%
VCORX vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCORX Vanguard Core Bond Fund Investor Shares | 0.50% | 7.68% | 2.10% | 5.90% | -13.27% | -0.80% | 10.19% | 9.47% | -0.92% | 4.34% |
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 VCORX and VTEB is 0.67, 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 | 0.67 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.77 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.73 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.68 |
Correlation (All Time) Calculated using the full available price history since Mar 30, 2016 | 0.68 |
The correlation between VCORX and VTEB shifts across timeframes, from 0.67 (1 year) to 0.77 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VCORX vs. VTEB — Risk / Return Rank
VCORX
VTEB
VCORX vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Core Bond Fund Investor Shares (VCORX) 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.
| VCORX | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.17 | ||
| Sortino ratioReturn per unit of downside risk | -1.72 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.54 | -0.31 |
| Calmar ratioReturn relative to maximum drawdown | 1.83 | 2.47 | -0.64 |
| Martin ratioReturn relative to average drawdown | 5.23 | 8.69 | -3.46 |
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Drawdowns
VCORX vs. VTEB - Drawdown Comparison
The maximum VCORX drawdown since its inception was -18.14%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for VCORX and VTEB.
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Drawdown Indicators
| VCORX | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.14% | -17.00% | -1.14% |
Max Drawdown (1Y)Largest decline over 1 year | -2.64% | -2.71% | +0.07% |
Max Drawdown (3Y)Largest decline over 3 years | -5.99% | -5.53% | -0.46% |
Max Drawdown (5Y)Largest decline over 5 years | -18.14% | -12.64% | -5.50% |
Max Drawdown (10Y)Largest decline over 10 years | -18.14% | -17.00% | -1.14% |
Current DrawdownCurrent decline from peak | -1.28% | -0.28% | -1.00% |
Average DrawdownAverage peak-to-trough decline | -4.25% | -2.32% | -1.93% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.77% | +0.15% |
Volatility
VCORX vs. VTEB - Volatility Comparison
Vanguard Core Bond Fund Investor Shares (VCORX) has a higher volatility of 1.01% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.72%. This indicates that VCORX'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
| VCORX | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.01% | 0.72% | +0.29% |
Volatility (6M)Calculated over the trailing 6-month period | 2.75% | 2.06% | +0.69% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.67% | 2.68% | +0.99% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.81% | 3.90% | +1.91% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.81% | 5.25% | -0.44% |
VCORX vs. VTEB - Expense Ratio Comparison
VCORX has a 0.20% 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
VCORX vs. VTEB - Dividend Comparison
VCORX's dividend yield for the trailing twelve months is around 4.64%, more than VTEB's 3.35% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VCORX Vanguard Core Bond Fund Investor Shares | 4.64% | 4.70% | 4.93% | 3.99% | 2.90% | 1.91% | 2.95% | 2.93% | 2.98% | 2.62% | 2.20% | 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
VCORX and VTEB have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCORX has higher volatility (1.01%) compared to VTEB (0.72%). In terms of maximum drawdown, VCORX dropped -18.14% vs VTEB's -17.00%.
VTEB currently has the higher Sharpe Ratio (2.49 vs 1.32), 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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