VO vs. VTEB
VO (Vanguard Mid-Cap ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both exchange-traded funds - VO is a Mid Cap Blend Equities fund tracking the CRSP US Mid Cap 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, VO returned 11.77%/yr vs 2.03%/yr for VTEB. At a 0.05 correlation, their price movements are largely independent. Both charge a 0.03% expense ratio.
Performance
VO vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, VO achieves a 10.43% return, which is significantly higher than VTEB's 1.44% return. Over the past 10 years, VO has outperformed VTEB with an annualized return of 11.77%, while VTEB has yielded a comparatively lower 2.03% annualized return.
VO
- 1D
- 0.97%
- 1M
- 3.61%
- YTD
- 10.43%
- 6M
- 9.31%
- 1Y
- 18.17%
- 3Y*
- 15.74%
- 5Y*
- 7.79%
- 10Y*
- 11.77%
VTEB
- 1D
- -0.08%
- 1M
- 0.68%
- YTD
- 1.44%
- 6M
- 1.95%
- 1Y
- 6.33%
- 3Y*
- 3.44%
- 5Y*
- 0.80%
- 10Y*
- 2.03%
VO vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VO Vanguard Mid-Cap ETF | 10.43% | 11.62% | 15.31% | 16.03% | -18.73% | 24.70% | 18.10% | 30.98% | -9.24% | 19.28% |
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 VO and VTEB is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.29 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.27 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.21 |
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 | 0.05 |
Over the past year, VO and VTEB have become more correlated (0.29) than their long-term average of 0.05, meaning their price movements have been converging.
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Return for Risk
VO vs. VTEB — Risk / Return Rank
VO
VTEB
VO vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mid-Cap ETF (VO) 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.
| VO | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.94 | ||
| Sortino ratioReturn per unit of downside risk | -1.44 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.51 | -0.26 |
| Calmar ratioReturn relative to maximum drawdown | 2.23 | 2.35 | -0.11 |
| Martin ratioReturn relative to average drawdown | 8.44 | 8.30 | +0.14 |
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Drawdowns
VO vs. VTEB - Drawdown Comparison
The maximum VO drawdown since its inception was -58.87%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for VO and VTEB.
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Drawdown Indicators
| VO | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -58.87% | -17.00% | -41.87% |
Max Drawdown (1Y)Largest decline over 1 year | -8.17% | -2.71% | -5.46% |
Max Drawdown (3Y)Largest decline over 3 years | -19.02% | -5.53% | -13.49% |
Max Drawdown (5Y)Largest decline over 5 years | -27.57% | -12.64% | -14.93% |
Max Drawdown (10Y)Largest decline over 10 years | -39.37% | -17.00% | -22.37% |
Current DrawdownCurrent decline from peak | -0.45% | -0.54% | +0.09% |
Average DrawdownAverage peak-to-trough decline | -7.85% | -2.32% | -5.53% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.16% | 0.77% | +1.39% |
Volatility
VO vs. VTEB - Volatility Comparison
Vanguard Mid-Cap ETF (VO) has a higher volatility of 4.31% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.93%. This indicates that VO'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
| VO | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.31% | 0.93% | +3.38% |
Volatility (6M)Calculated over the trailing 6-month period | 9.71% | 2.04% | +7.67% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.74% | 2.70% | +10.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.65% | 3.90% | +13.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.96% | 5.26% | +13.70% |
VO vs. VTEB - Expense Ratio Comparison
Both VO and VTEB have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VO vs. VTEB - Dividend Comparison
VO's dividend yield for the trailing twelve months is around 1.36%, less than VTEB's 3.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VO Vanguard Mid-Cap ETF | 1.36% | 1.52% | 1.49% | 1.52% | 1.60% | 1.12% | 1.45% | 1.48% | 1.82% | 1.35% | 1.45% | 1.47% |
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
VO and VTEB have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VO has higher volatility (4.31%) compared to VTEB (0.93%). In terms of maximum drawdown, VO dropped -58.87% vs VTEB's -17.00%.
On 10-year performance, VO leads with 11.77% vs 2.03% for VTEB. Both ETFs have the same 0.03% expense ratio. 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, VO has performed better with a 11.77% return vs 2.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VO and VTEB have the same expense ratio: 0.03% per year.
VTEB has the higher dividend yield at 3.36%, compared with 1.36% for VO.
VO is categorized as Mid Cap Blend Equities, while VTEB is Municipal Bonds. VO tracks CRSP US Mid Cap Index, while VTEB tracks S&P National AMT-Free Municipal Bond Index.
VTEB currently has the higher Sharpe Ratio (2.38 vs 1.43), 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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