VTEAX vs. VBTLX

Last updated Jun 23, 2026

VTEAX (Vanguard Tax-Exempt Bond Index Fund Admiral Shares) and VBTLX (Vanguard Total Bond Market Index Fund Admiral Shares) are both mutual funds - VTEAX is a Municipal Bonds fund managed by Vanguard, while VBTLX is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Over the past 10 years, VTEAX returned 2.09%/yr vs 1.57%/yr for VBTLX. A 0.52 correlation means they provide meaningful diversification when combined. VTEAX charges 0.09%/yr vs 0.04%/yr for VBTLX.

Performance

VTEAX vs. VBTLX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX) and Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTEAX achieves a 1.76% return, which is significantly higher than VBTLX's 0.42% return. Over the past 10 years, VTEAX has outperformed VBTLX with an annualized return of 2.09%, while VBTLX has yielded a comparatively lower 1.57% annualized return.

VTEAX

• 1D: 0.10%
• 1M: 1.63%
• YTD: 1.76%
• 6M: 1.96%
• 1Y: 6.78%
• 3Y*: 3.62%
• 5Y*: 0.98%
• 10Y*: 2.09%

VBTLX

• 1D: 0.31%
• 1M: 0.97%
• YTD: 0.42%
• 6M: 0.76%
• 1Y: 4.68%
• 3Y*: 4.08%
• 5Y*: 0.02%
• 10Y*: 1.57%

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

VTEAX vs. VBTLX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTEAX Vanguard Tax-Exempt Bond Index Fund Admiral Shares	1.76%	3.67%	1.63%	6.39%	-8.21%	1.43%	4.97%	7.45%	0.99%	4.94%
VBTLX Vanguard Total Bond Market Index Fund Admiral Shares	0.42%	7.17%	1.26%	5.74%	-13.16%	-1.81%	7.72%	8.73%	-0.25%	3.56%

Correlation

The correlation between VTEAX and VBTLX is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Aug 31, 2015	0.52

The correlation between VTEAX and VBTLX shifts across timeframes, from 0.51 (10 years) to 0.62 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

VTEAX vs. VBTLX — Risk / Return Rank

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

VTEAX

VTEAX Risk / Return Rank: 75
VTEAX Sharpe Ratio Rank: 93
VTEAX Sortino Ratio Rank: 92
VTEAX Omega Ratio Rank: 95
VTEAX Calmar Ratio Rank: 49
VTEAX Martin Ratio Rank: 44

VBTLX

VBTLX Risk / Return Rank: 21
VBTLX Sharpe Ratio Rank: 21
VBTLX Sortino Ratio Rank: 21
VBTLX Omega Ratio Rank: 19
VBTLX Calmar Ratio Rank: 22
VBTLX Martin Ratio Rank: 19

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.

VTEAX vs. VBTLX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX) and Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX). 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.

	VTEAX	VBTLX	Difference
Sharpe ratio: Return per unit of total volatility	2.89	1.21	+1.69
Sortino ratio: Return per unit of downside risk	4.26	1.81	+2.45
Omega ratio: Gain probability vs. loss probability	1.73	1.21	+0.51
Calmar ratio: Return relative to maximum drawdown	2.57	1.63	+0.94
Martin ratio: Return relative to average drawdown	8.85	4.63	+4.23

VTEAX vs. VBTLX - Sharpe Ratio Comparison

The current VTEAX Sharpe Ratio is 2.89, which is higher than the VBTLX Sharpe Ratio of 1.21. The chart below compares the historical Sharpe Ratios of VTEAX and VBTLX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VTEAX vs. VBTLX - Drawdown Comparison

The maximum VTEAX drawdown since its inception was -12.75%, smaller than the maximum VBTLX drawdown of -18.81%. Use the drawdown chart below to compare losses from any high point for VTEAX and VBTLX.

Drawdown Indicators

	VTEAX	VBTLX	Difference
Max Drawdown Largest peak-to-trough decline	-12.75%	-18.81%	+6.06%
Max Drawdown (1Y) Largest decline over 1 year	-2.65%	-2.89%	+0.24%
Max Drawdown (3Y) Largest decline over 3 years	-5.46%	-6.00%	+0.54%
Max Drawdown (5Y) Largest decline over 5 years	-12.75%	-18.14%	+5.39%
Max Drawdown (10Y) Largest decline over 10 years	-12.75%	-18.81%	+6.06%
Current Drawdown Current decline from peak	-0.26%	-2.18%	+1.92%
Average Drawdown Average peak-to-trough decline	-2.25%	-2.67%	+0.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.77%	1.01%	-0.24%

Volatility

VTEAX vs. VBTLX - Volatility Comparison

The current volatility for Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX) is 0.64%, while Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) has a volatility of 1.21%. This indicates that VTEAX experiences smaller price fluctuations and is considered to be less risky than VBTLX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTEAX	VBTLX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.64%	1.21%	-0.57%
Volatility (6M) Calculated over the trailing 6-month period	1.85%	2.86%	-1.01%
Volatility (1Y) Calculated over the trailing 1-year period	2.35%	3.90%	-1.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.61%	6.01%	-2.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.66%	4.99%	-1.33%

VTEAX vs. VBTLX - Expense Ratio Comparison

VTEAX has a 0.09% expense ratio, which is higher than VBTLX's 0.04% 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

VTEAX vs. VBTLX - Dividend Comparison

VTEAX's dividend yield for the trailing twelve months is around 3.31%, less than VBTLX's 3.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBTLX Vanguard Total Bond Market Index Fund Admiral Shares	3.98%	3.87%	3.69%	3.10%	2.59%	1.96%	2.39%	2.74%	2.57%	2.56%	2.53%	2.82%
VTEAX Vanguard Tax-Exempt Bond Index Fund Admiral Shares	3.31%	3.26%	3.36%	2.98%	2.05%	1.60%	1.97%	2.27%	2.24%	1.95%	1.67%	0.59%

Frequently Asked Questions

Can I hold both VTEAX and VBTLX in my portfolio?

VTEAX and VBTLX have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTEAX or VBTLX?

VBTLX has higher volatility (1.21%) compared to VTEAX (0.64%). In terms of maximum drawdown, VTEAX dropped -12.75% vs VBTLX's -18.81%.

Which has better risk-adjusted returns?

VTEAX currently has the higher Sharpe Ratio (2.89 vs 1.21), 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.