VTEB vs. EDV
Compare and contrast key facts about Vanguard Tax-Exempt Bond ETF (VTEB) and Vanguard Extended Duration Treasury ETF (EDV).
VTEB and EDV are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VTEB is a passively managed fund by Vanguard that tracks the performance of the S&P National AMT-Free Municipal Bond Index. It was launched on Aug 21, 2015. EDV is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Treasury STRIPS 20-30 Year Equal Par Bond Index. It was launched on Dec 6, 2007. Both VTEB and EDV are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VTEB or EDV.
Key characteristics
| VTEB | EDV | |
|---|---|---|
| YTD Return | 1.58% | -9.89% |
| 1Y Return | 6.31% | 4.45% |
| 3Y Return (Ann) | -0.09% | -16.99% |
| 5Y Return (Ann) | 1.23% | -8.70% |
| Sharpe Ratio | 1.70 | 0.30 |
| Sortino Ratio | 2.48 | 0.56 |
| Omega Ratio | 1.33 | 1.06 |
| Calmar Ratio | 0.93 | 0.11 |
| Martin Ratio | 7.24 | 0.70 |
| Ulcer Index | 0.91% | 8.84% |
| Daily Std Dev | 3.90% | 20.65% |
| Max Drawdown | -17.00% | -59.96% |
| Current Drawdown | -1.22% | -53.04% |
Correlation
The correlation between VTEB and EDV is 0.64, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
VTEB vs. EDV - Performance Comparison
In the year-to-date period, VTEB achieves a 1.58% return, which is significantly higher than EDV's -9.89% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VTEB vs. EDV - Expense Ratio Comparison
VTEB has a 0.05% expense ratio, which is lower than EDV's 0.06% 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%.
Risk-Adjusted Performance
VTEB vs. EDV - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Vanguard Extended Duration Treasury ETF (EDV). 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.
Dividends
VTEB vs. EDV - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.09%, less than EDV's 4.31% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 3.09% | 2.79% | 2.09% | 1.65% | 1.99% | 2.30% | 2.25% | 1.96% | 1.66% | 0.58% | 0.00% | 0.00% |
EDV Vanguard Extended Duration Treasury ETF | 4.31% | 3.55% | 3.28% | 1.95% | 5.54% | 3.51% | 2.90% | 2.92% | 5.32% | 4.24% | 3.12% | 5.03% |
Drawdowns
VTEB vs. EDV - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, smaller than the maximum EDV drawdown of -59.96%. Use the drawdown chart below to compare losses from any high point for VTEB and EDV. For additional features, visit the drawdowns tool.
Volatility
VTEB vs. EDV - Volatility Comparison
The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 1.97%, while Vanguard Extended Duration Treasury ETF (EDV) has a volatility of 7.08%. This indicates that VTEB experiences smaller price fluctuations and is considered to be less risky than EDV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.