VONE vs. VTEI

Last updated Jun 4, 2026

VONE (Vanguard Russell 1000 ETF) and VTEI (Vanguard Intermediate-Term Tax-Exempt Bond ETF) are both exchange-traded funds - VONE is a Large Cap Blend Equities fund tracking the Russell 1000 Index, while VTEI is a Municipal Bonds fund tracking the S&P Intermediate Term National AMT-Free Municipal Bond Index. Both are passively managed. Over the past year, VONE returned 27.04% vs 6.26% for VTEI. At a 0.19 correlation, their price movements are largely independent. Both charge a 0.08% expense ratio.

Performance

VONE vs. VTEI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 1000 ETF (VONE) and Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VONE achieves a 10.56% return, which is significantly higher than VTEI's 1.12% return.

VONE

• 1D: -0.70%
• 1M: 4.95%
• YTD: 10.56%
• 6M: 10.53%
• 1Y: 27.04%
• 3Y*: 22.12%
• 5Y*: 13.08%
• 10Y*: 15.25%

VTEI

• 1D: -0.03%
• 1M: 0.52%
• YTD: 1.12%
• 6M: 1.55%
• 1Y: 6.26%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

VONE vs. VTEI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VONE Vanguard Russell 1000 ETF	10.56%	17.21%	20.83%
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF	1.12%	4.59%	1.55%

Correlation

The correlation between VONE and VTEI is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (All Time) Calculated using the full available price history since Jan 31, 2024	0.19

Return for Risk

VONE vs. VTEI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VONE

VONE Risk / Return Rank: 67
VONE Sharpe Ratio Rank: 67
VONE Sortino Ratio Rank: 66
VONE Omega Ratio Rank: 66
VONE Calmar Ratio Rank: 61
VONE Martin Ratio Rank: 74

VTEI

VTEI Risk / Return Rank: 71
VTEI Sharpe Ratio Rank: 80
VTEI Sortino Ratio Rank: 87
VTEI Omega Ratio Rank: 92
VTEI Calmar Ratio Rank: 48
VTEI Martin Ratio Rank: 47

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VONE vs. VTEI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 1000 ETF (VONE) and Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI). 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.

	VONE	VTEI	Difference
Sharpe ratio: Return per unit of total volatility	2.27	2.65	-0.38
Sortino ratio: Return per unit of downside risk	3.13	4.02	-0.89
Omega ratio: Gain probability vs. loss probability	1.41	1.62	-0.21
Calmar ratio: Return relative to maximum drawdown	3.07	2.41	+0.66
Martin ratio: Return relative to average drawdown	14.15	7.90	+6.24
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VONE vs. VTEI - Sharpe Ratio Comparison

The current VONE Sharpe Ratio is 2.27, which is comparable to the VTEI Sharpe Ratio of 2.65. The chart below compares the historical Sharpe Ratios of VONE and VTEI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VONE	VTEI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.27	2.65	-0.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.77	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.85	1.02	-0.17

Drawdowns

VONE vs. VTEI - Drawdown Comparison

The maximum VONE drawdown since its inception was -34.66%, which is greater than VTEI's maximum drawdown of -3.64%. Use the drawdown chart below to compare losses from any high point for VONE and VTEI.

Drawdown Indicators

	VONE	VTEI	Difference
Max Drawdown Largest peak-to-trough decline	-34.66%	-3.64%	-31.02%
Max Drawdown (1Y) Largest decline over 1 year	-8.85%	-2.61%	-6.24%
Max Drawdown (3Y) Largest decline over 3 years	-19.06%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-25.12%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-34.66%	—	—
Current Drawdown Current decline from peak	-0.70%	-0.85%	+0.15%
Average Drawdown Average peak-to-trough decline	-3.91%	-0.78%	-3.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.92%	0.79%	+1.13%

Volatility

VONE vs. VTEI - Volatility Comparison

Vanguard Russell 1000 ETF (VONE) has a higher volatility of 2.82% compared to Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) at 0.77%. This indicates that VONE's price experiences larger fluctuations and is considered to be riskier than VTEI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VONE	VTEI	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.82%	0.77%	+2.05%
Volatility (6M) Calculated over the trailing 6-month period	8.99%	1.71%	+7.28%
Volatility (1Y) Calculated over the trailing 1-year period	11.97%	2.37%	+9.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.08%	3.04%	+14.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.25%	3.04%	+15.21%

VONE vs. VTEI - Expense Ratio Comparison

Both VONE and VTEI have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VONE vs. VTEI - Dividend Comparison

VONE's dividend yield for the trailing twelve months is around 0.99%, less than VTEI's 3.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VONE Vanguard Russell 1000 ETF	0.99%	1.07%	1.20%	1.40%	1.59%	1.16%	1.45%	1.65%	1.96%	1.69%	1.89%	1.89%
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF	3.05%	3.00%	2.65%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VONE and VTEI in my portfolio?

VONE and VTEI have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VONE or VTEI?

VONE has higher volatility (2.82%) compared to VTEI (0.77%). In terms of maximum drawdown, VONE dropped -34.66% vs VTEI's -3.64%.

Which ETF is better, VONE or VTEI?

On 1-year performance, VONE leads with 27.04% vs 6.26% for VTEI. Both ETFs have the same 0.08% expense ratio. On volatility, VTEI has been the lower-risk option at 0.77%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VONE or VTEI?

Over the 1-year period, VONE has performed better with a 27.04% return vs 6.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VONE or VTEI?

VONE and VTEI have the same expense ratio: 0.08% per year.

Which ETF pays a higher dividend yield, VONE or VTEI?

VTEI has the higher dividend yield at 3.05%, compared with 0.99% for VONE.

What is the main difference between VONE and VTEI?

VONE is categorized as Large Cap Blend Equities, while VTEI is Municipal Bonds. VONE tracks Russell 1000 Index, while VTEI tracks S&P Intermediate Term National AMT-Free Municipal Bond Index.

Which has better risk-adjusted returns?

VTEI currently has the higher Sharpe Ratio (2.65 vs 2.27), 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.