VTEB vs. DFUSX

Last updated Jun 14, 2026

VTEB (Vanguard Tax-Exempt Bond ETF) and DFUSX (DFA U.S. Large Company Portfolio) are both funds - VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index, while DFUSX is a Large Cap Blend Equities fund managed by Dimensional. Over the past 10 years, VTEB returned 2.03%/yr vs 15.30%/yr for DFUSX. At a 0.03 correlation, their price movements are largely independent. VTEB charges 0.03%/yr vs 0.08%/yr for DFUSX.

Performance

VTEB vs. DFUSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Tax-Exempt Bond ETF (VTEB) and DFA U.S. Large Company Portfolio (DFUSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTEB achieves a 1.44% return, which is significantly lower than DFUSX's 8.57% return. Over the past 10 years, VTEB has underperformed DFUSX with an annualized return of 2.03%, while DFUSX has yielded a comparatively higher 15.30% annualized return.

VTEB

• 1D: -0.08%
• 1M: 0.78%
• YTD: 1.44%
• 6M: 1.95%
• 1Y: 6.57%
• 3Y*: 3.44%
• 5Y*: 0.80%
• 10Y*: 2.03%

DFUSX

• 1D: 1.80%
• 1M: -0.12%
• YTD: 8.57%
• 6M: 8.90%
• 1Y: 25.09%
• 3Y*: 20.99%
• 5Y*: 13.26%
• 10Y*: 15.30%

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

VTEB vs. DFUSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
DFUSX DFA U.S. Large Company Portfolio	8.57%	17.76%	24.91%	26.28%	-18.14%	28.53%	18.41%	32.08%	-4.45%	21.04%

Correlation

The correlation between VTEB and DFUSX is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.26
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.19
Correlation (10Y) Calculated over the trailing 10-year period	0.06
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015	0.03

Over the past year, VTEB and DFUSX have become more correlated (0.26) than their long-term average of 0.03, meaning their price movements have been converging.

Return for Risk

VTEB vs. DFUSX — Risk / Return Rank

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

VTEB

VTEB Risk / Return Rank: 74
VTEB Sharpe Ratio Rank: 85
VTEB Sortino Ratio Rank: 88
VTEB Omega Ratio Rank: 90
VTEB Calmar Ratio Rank: 53
VTEB Martin Ratio Rank: 54

DFUSX

DFUSX Risk / Return Rank: 74
DFUSX Sharpe Ratio Rank: 74
DFUSX Sortino Ratio Rank: 71
DFUSX Omega Ratio Rank: 70
DFUSX Calmar Ratio Rank: 74
DFUSX Martin Ratio Rank: 84

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.

VTEB vs. DFUSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and DFA U.S. Large Company Portfolio (DFUSX). 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	DFUSX	Difference
Sharpe ratio: Return per unit of total volatility	2.38	2.03	+0.35
Sortino ratio: Return per unit of downside risk	3.50	2.79	+0.71
Omega ratio: Gain probability vs. loss probability	1.51	1.36	+0.15
Calmar ratio: Return relative to maximum drawdown	2.35	2.76	-0.41
Martin ratio: Return relative to average drawdown	8.30	12.54	-4.24

VTEB vs. DFUSX - Sharpe Ratio Comparison

The current VTEB Sharpe Ratio is 2.38, which is comparable to the DFUSX Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of VTEB and DFUSX, 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

VTEB vs. DFUSX - Drawdown Comparison

The maximum VTEB drawdown since its inception was -17.00%, smaller than the maximum DFUSX drawdown of -54.96%. Use the drawdown chart below to compare losses from any high point for VTEB and DFUSX.

Drawdown Indicators

	VTEB	DFUSX	Difference
Max Drawdown Largest peak-to-trough decline	-17.00%	-54.96%	+37.96%
Max Drawdown (1Y) Largest decline over 1 year	-2.71%	-8.88%	+6.17%
Max Drawdown (3Y) Largest decline over 3 years	-5.53%	-18.76%	+13.23%
Max Drawdown (5Y) Largest decline over 5 years	-12.64%	-24.58%	+11.94%
Max Drawdown (10Y) Largest decline over 10 years	-17.00%	-33.79%	+16.79%
Current Drawdown Current decline from peak	-0.54%	-2.81%	+2.27%
Average Drawdown Average peak-to-trough decline	-2.32%	-10.59%	+8.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.77%	1.94%	-1.17%

Volatility

VTEB vs. DFUSX - Volatility Comparison

The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 0.93%, while DFA U.S. Large Company Portfolio (DFUSX) has a volatility of 4.46%. This indicates that VTEB experiences smaller price fluctuations and is considered to be less risky than DFUSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTEB	DFUSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.93%	4.46%	-3.53%
Volatility (6M) Calculated over the trailing 6-month period	2.04%	9.73%	-7.69%
Volatility (1Y) Calculated over the trailing 1-year period	2.70%	12.09%	-9.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.90%	16.95%	-13.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.26%	18.10%	-12.84%

VTEB vs. DFUSX - Expense Ratio Comparison

VTEB has a 0.03% expense ratio, which is lower than DFUSX'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. DFUSX - Dividend Comparison

VTEB's dividend yield for the trailing twelve months is around 3.36%, more than DFUSX's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFUSX DFA U.S. Large Company Portfolio	0.98%	1.04%	1.24%	4.17%	6.24%	6.57%	3.82%	2.74%	2.64%	1.56%	1.95%	2.87%
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

Can I hold both VTEB and DFUSX in my portfolio?

VTEB and DFUSX have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTEB or DFUSX?

DFUSX has higher volatility (4.46%) compared to VTEB (0.93%). In terms of maximum drawdown, VTEB dropped -17.00% vs DFUSX's -54.96%.

Which has better risk-adjusted returns?

VTEB currently has the higher Sharpe Ratio (2.38 vs 2.03), 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.