VTEAX vs. VNJUX

Last updated Jun 5, 2026

VTEAX (Vanguard Tax-Exempt Bond Index Fund Admiral Shares) and VNJUX (Vanguard New Jersey Long-Term Tax-Exempt Fund Admiral Shares) are both Municipal Bonds funds from Vanguard. Over the past 10 years, VTEAX returned 2.13%/yr vs 3.12%/yr for VNJUX. Their correlation of 0.88 suggests significant overlap in exposure. Both charge a 0.09% expense ratio.

Performance

VTEAX vs. VNJUX - 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 New Jersey Long-Term Tax-Exempt Fund Admiral Shares (VNJUX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTEAX achieves a 1.45% return, which is significantly lower than VNJUX's 1.96% return. Over the past 10 years, VTEAX has underperformed VNJUX with an annualized return of 2.13%, while VNJUX has yielded a comparatively higher 3.12% annualized return.

VTEAX

• 1D: 0.00%
• 1M: 0.62%
• YTD: 1.45%
• 6M: 1.79%
• 1Y: 6.85%
• 3Y*: 3.62%
• 5Y*: 0.96%
• 10Y*: 2.13%

VNJUX

• 1D: 0.00%
• 1M: 0.74%
• YTD: 1.96%
• 6M: 2.28%
• 1Y: 8.60%
• 3Y*: 4.72%
• 5Y*: 1.44%
• 10Y*: 3.12%

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

VTEAX vs. VNJUX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTEAX Vanguard Tax-Exempt Bond Index Fund Admiral Shares	1.45%	3.67%	1.63%	6.39%	-8.21%	1.43%	4.97%	7.45%	0.99%	4.94%
VNJUX Vanguard New Jersey Long-Term Tax-Exempt Fund Admiral Shares	1.96%	4.96%	2.79%	7.76%	-10.24%	2.69%	6.11%	9.37%	1.61%	8.48%

Correlation

The correlation between VTEAX and VNJUX is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.88
Correlation (All Time) Calculated using the full available price history since Sep 1, 2015	0.88

The correlation between VTEAX and VNJUX has been stable across timeframes, ranging from 0.82 to 0.91 - a consistent structural relationship.

Return for Risk

VTEAX vs. VNJUX — Risk / Return Rank

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

VTEAX

VTEAX Risk / Return Rank: 73
VTEAX Sharpe Ratio Rank: 90
VTEAX Sortino Ratio Rank: 90
VTEAX Omega Ratio Rank: 94
VTEAX Calmar Ratio Rank: 49
VTEAX Martin Ratio Rank: 44

VNJUX

VNJUX Risk / Return Rank: 78
VNJUX Sharpe Ratio Rank: 88
VNJUX Sortino Ratio Rank: 92
VNJUX Omega Ratio Rank: 93
VNJUX Calmar Ratio Rank: 61
VNJUX Martin Ratio Rank: 54

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. VNJUX - 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 New Jersey Long-Term Tax-Exempt Fund Admiral Shares (VNJUX). 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.

	VTEAX	VNJUX	Difference
Sharpe ratio: Return per unit of total volatility	3.00	2.91	+0.09
Sortino ratio: Return per unit of downside risk	4.43	4.62	-0.19
Omega ratio: Gain probability vs. loss probability	1.76	1.72	+0.04
Calmar ratio: Return relative to maximum drawdown	2.68	3.01	-0.33
Martin ratio: Return relative to average drawdown	9.31	10.83	-1.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTEAX vs. VNJUX - Sharpe Ratio Comparison

The current VTEAX Sharpe Ratio is 3.00, which is comparable to the VNJUX Sharpe Ratio of 2.91. The chart below compares the historical Sharpe Ratios of VTEAX and VNJUX, 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

	VTEAX	VNJUX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.00	2.91	+0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.32	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.69	-0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.70	1.04	-0.34

Drawdowns

VTEAX vs. VNJUX - Drawdown Comparison

The maximum VTEAX drawdown since its inception was -12.75%, smaller than the maximum VNJUX drawdown of -15.62%. Use the drawdown chart below to compare losses from any high point for VTEAX and VNJUX.

Drawdown Indicators

	VTEAX	VNJUX	Difference
Max Drawdown Largest peak-to-trough decline	-12.75%	-15.62%	+2.87%
Max Drawdown (1Y) Largest decline over 1 year	-2.65%	-2.94%	+0.29%
Max Drawdown (3Y) Largest decline over 3 years	-5.46%	-6.87%	+1.41%
Max Drawdown (5Y) Largest decline over 5 years	-12.75%	-15.62%	+2.87%
Max Drawdown (10Y) Largest decline over 10 years	-12.75%	-15.62%	+2.87%
Current Drawdown Current decline from peak	-0.55%	-0.22%	-0.33%
Average Drawdown Average peak-to-trough decline	-2.26%	-2.05%	-0.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.76%	0.81%	-0.05%

Volatility

VTEAX vs. VNJUX - Volatility Comparison

The current volatility for Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX) is 0.98%, while Vanguard New Jersey Long-Term Tax-Exempt Fund Admiral Shares (VNJUX) has a volatility of 1.15%. This indicates that VTEAX experiences smaller price fluctuations and is considered to be less risky than VNJUX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTEAX	VNJUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.98%	1.15%	-0.17%
Volatility (6M) Calculated over the trailing 6-month period	1.84%	2.25%	-0.41%
Volatility (1Y) Calculated over the trailing 1-year period	2.37%	3.05%	-0.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.61%	4.55%	-0.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.67%	4.57%	-0.90%

VTEAX vs. VNJUX - Expense Ratio Comparison

Both VTEAX and VNJUX have an expense ratio of 0.09%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VTEAX vs. VNJUX - Dividend Comparison

VTEAX's dividend yield for the trailing twelve months is around 3.32%, less than VNJUX's 3.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VNJUX Vanguard New Jersey Long-Term Tax-Exempt Fund Admiral Shares	3.63%	4.49%	4.07%	3.03%	3.22%	2.91%	3.79%	4.15%	4.01%	4.13%	4.62%	3.78%
VTEAX Vanguard Tax-Exempt Bond Index Fund Admiral Shares	3.32%	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 VNJUX in my portfolio?

VTEAX and VNJUX have a correlation of 0.82, 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 VNJUX?

VNJUX has higher volatility (1.15%) compared to VTEAX (0.98%). In terms of maximum drawdown, VTEAX dropped -12.75% vs VNJUX's -15.62%.

Which has better risk-adjusted returns?

VTEAX currently has the higher Sharpe Ratio (3.00 vs 2.91), 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.