VTEB vs. CALI
VTEB (Vanguard Tax-Exempt Bond ETF) and CALI (iShares Short-Term California Muni Active ETF) are both Municipal Bonds funds - VTEB tracks the S&P National AMT-Free Municipal Bond Index while CALI tracks the ICE AMT-Free California Municipal Index. Both are passively managed. Over the past 3 years, VTEB returned 3.19%/yr vs 3.07%/yr for CALI. Their 0.45 correlation means their historical movements had little consistent relationship. VTEB charges 0.03%/yr vs 0.08%/yr for CALI.
Performance
VTEB vs. CALI - Performance Comparison
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Returns By Period
In the year-to-date period, VTEB achieves a 0.43% return, which is significantly lower than CALI's 1.12% return.
VTEB
- 1D
- 0.12%
- 1M
- -1.72%
- 6M
- -0.22%
- YTD
- 0.43%
- 1Y
- 4.90%
- 3Y*
- 3.19%
- 5Y*
- 0.54%
- 10Y*
- 1.90%
- ALL TIME*
- 2.29%
CALI
- 1D
- 0.10%
- 1M
- -0.02%
- 6M
- 0.73%
- YTD
- 1.12%
- 1Y
- 2.30%
- 3Y*
- 3.07%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 3.01%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $5.40M | $5.45M | $5.34M | |
| $388.01M | $356.14M | $359.95M |
VTEB vs. CALI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 0.43% | 3.72% | 1.31% | 3.36% |
CALI iShares Short-Term California Muni Active ETF | 1.12% | 3.28% | 2.84% | 1.97% |
Correlation
The correlation between VTEB and CALI is 0.58, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.58 |
Correlation (3Y) Balances recent behavior with more history. | 0.46 |
Correlation (All Time) Calculated using the full available price history since Jul 13, 2023 | 0.45 |
The correlation between VTEB and CALI shifts across timeframes, from 0.45 (all time) to 0.58 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VTEB vs. CALI — Risk / Return Rank
VTEB
CALI
VTEB vs. CALI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and iShares Short-Term California Muni Active ETF (CALI). 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.
| VTEB | CALI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.41 | ||
| Sortino ratioReturn per unit of downside risk | -2.23 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.72 | -0.35 |
| Calmar ratioReturn relative to maximum drawdown | 1.82 | 3.46 | -1.64 |
| Martin ratioReturn relative to average drawdown | 5.96 | 17.46 | -11.50 |
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Drawdowns
VTEB vs. CALI - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, which is greater than CALI's maximum drawdown of -0.78%. Use the drawdown chart below to compare losses from any high point for VTEB and CALI.
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Drawdown Indicators
| VTEB | CALI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -0.78% | -16.22% |
Max Drawdown (1Y)Largest decline over 1 year | -2.71% | -0.67% | -2.04% |
Max Drawdown (3Y)Largest decline over 3 years | -4.76% | -0.78% | -3.98% |
Max Drawdown (5Y)Largest decline over 5 years | -12.56% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -17.00% | — | — |
Current DrawdownCurrent decline from peak | -1.74% | -0.03% | -1.71% |
Average DrawdownAverage peak-to-trough decline | -2.30% | -0.08% | -2.22% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.82% | 0.13% | +0.69% |
Volatility
VTEB vs. CALI - Volatility Comparison
Vanguard Tax-Exempt Bond ETF (VTEB) has a higher volatility of 0.88% compared to iShares Short-Term California Muni Active ETF (CALI) at 0.21%. This indicates that VTEB's price experiences larger fluctuations and is considered to be riskier than CALI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTEB | CALI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.88% | 0.21% | +0.67% |
Volatility (6M)Calculated over the trailing 6-month period | 2.22% | 0.54% | +1.68% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.73% | 0.72% | +2.01% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.92% | 1.09% | +2.83% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.25% | 1.09% | +4.16% |
VTEB vs. CALI - Expense Ratio Comparison
VTEB has a 0.03% expense ratio, which is lower than CALI's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VTEB vs. CALI - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.43%, more than CALI's 2.53% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CALI iShares Short-Term California Muni Active ETF | 2.53% | 2.62% | 3.14% | 1.37% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.43% | 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
VTEB and CALI have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEB has higher volatility (0.88%) compared to CALI (0.21%). In terms of maximum drawdown, VTEB dropped -17.00% vs CALI's -0.78%.
On 3-year performance, VTEB leads with 3.19% vs 3.07% for CALI. On fees, VTEB is cheaper at 0.03% per year. On volatility, CALI has been the lower-risk option at 0.21%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, VTEB has performed better with a 3.19% return vs 3.07%. 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 0.08% for CALI.
VTEB has the higher dividend yield at 3.43%, compared with 2.53% for CALI.
VTEB tracks S&P National AMT-Free Municipal Bond Index, while CALI tracks ICE AMT-Free California Municipal Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VTEB and 0.08% for CALI.
CALI currently has the higher Sharpe Ratio (3.22 vs 1.81), 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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