VDC vs. VTEB
VDC (Vanguard Consumer Staples ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both exchange-traded funds - VDC is a Consumer Staples Equities fund tracking the MSCI US Investable Market Consumer Staples 25/50 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, VDC returned 8.03%/yr vs 2.03%/yr for VTEB. At a 0.08 correlation, their price movements are largely independent. VDC charges 0.09%/yr vs 0.03%/yr for VTEB.
Performance
VDC vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, VDC achieves a 10.55% return, which is significantly higher than VTEB's 1.44% return. Over the past 10 years, VDC has outperformed VTEB with an annualized return of 8.03%, while VTEB has yielded a comparatively lower 2.03% annualized return.
VDC
- 1D
- 0.65%
- 1M
- 0.13%
- YTD
- 10.55%
- 6M
- 8.59%
- 1Y
- 8.56%
- 3Y*
- 9.05%
- 5Y*
- 7.16%
- 10Y*
- 8.03%
VTEB
- 1D
- -0.08%
- 1M
- 0.78%
- YTD
- 1.44%
- 6M
- 1.95%
- 1Y
- 6.57%
- 3Y*
- 3.44%
- 5Y*
- 0.80%
- 10Y*
- 2.03%
VDC vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VDC Vanguard Consumer Staples ETF | 10.55% | 2.17% | 13.30% | 2.38% | -1.79% | 17.64% | 10.86% | 26.11% | -7.79% | 11.85% |
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 VDC and VTEB is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.14 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.17 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.11 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.08 |
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Return for Risk
VDC vs. VTEB — Risk / Return Rank
VDC
VTEB
VDC vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Consumer Staples ETF (VDC) 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.
| VDC | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.79 | ||
| Sortino ratioReturn per unit of downside risk | -2.57 | ||
| Omega ratioGain probability vs. loss probability | 1.11 | 1.51 | -0.41 |
| Calmar ratioReturn relative to maximum drawdown | 0.79 | 2.35 | -1.56 |
| Martin ratioReturn relative to average drawdown | 1.60 | 8.30 | -6.70 |
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Drawdowns
VDC vs. VTEB - Drawdown Comparison
The maximum VDC drawdown since its inception was -34.24%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for VDC and VTEB.
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Drawdown Indicators
| VDC | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.24% | -17.00% | -17.24% |
Max Drawdown (1Y)Largest decline over 1 year | -9.28% | -2.71% | -6.57% |
Max Drawdown (3Y)Largest decline over 3 years | -11.78% | -5.53% | -6.25% |
Max Drawdown (5Y)Largest decline over 5 years | -16.55% | -12.64% | -3.91% |
Max Drawdown (10Y)Largest decline over 10 years | -25.31% | -17.00% | -8.31% |
Current DrawdownCurrent decline from peak | -4.37% | -0.54% | -3.83% |
Average DrawdownAverage peak-to-trough decline | -3.73% | -2.32% | -1.41% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.57% | 0.77% | +3.80% |
Volatility
VDC vs. VTEB - Volatility Comparison
Vanguard Consumer Staples ETF (VDC) has a higher volatility of 4.62% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.93%. This indicates that VDC'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
| VDC | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.62% | 0.93% | +3.69% |
Volatility (6M)Calculated over the trailing 6-month period | 10.02% | 2.04% | +7.98% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.57% | 2.70% | +9.87% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.17% | 3.90% | +9.27% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.66% | 5.26% | +9.40% |
VDC vs. VTEB - Expense Ratio Comparison
VDC has a 0.09% 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
VDC vs. VTEB - Dividend Comparison
VDC's dividend yield for the trailing twelve months is around 2.08%, less than VTEB's 3.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VDC Vanguard Consumer Staples ETF | 2.08% | 2.26% | 2.33% | 2.65% | 2.37% | 2.14% | 2.50% | 2.44% | 2.78% | 2.52% | 2.39% | 2.55% |
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
VDC and VTEB have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VDC has higher volatility (4.62%) compared to VTEB (0.93%). In terms of maximum drawdown, VDC dropped -34.24% vs VTEB's -17.00%.
On 10-year performance, VDC leads with 8.03% 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, VDC has performed better with a 8.03% 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 0.09% for VDC.
VTEB has the higher dividend yield at 3.36%, compared with 2.08% for VDC.
VDC is categorized as Consumer Staples Equities, while VTEB is Municipal Bonds. VDC tracks MSCI US Investable Market Consumer Staples 25/50 Index, while VTEB tracks S&P National AMT-Free Municipal Bond Index. Their fees differ too: 0.09% for VDC and 0.03% for VTEB.
VTEB currently has the higher Sharpe Ratio (2.38 vs 0.58), 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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