VTEB vs. FBND
VTEB (Vanguard Tax-Exempt Bond ETF) and FBND (Fidelity Total Bond ETF) are both exchange-traded funds - VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index, while FBND is a Intermediate Core-Plus Bond fund actively managed by Fidelity. VTEB is passively managed, while FBND is actively managed. Over the past 10 years, VTEB returned 1.90%/yr vs 2.28%/yr for FBND. Their 0.62 correlation means they have sometimes moved together and sometimes differently. VTEB charges 0.03%/yr vs 0.36%/yr for FBND.
Performance
VTEB vs. FBND - Performance Comparison
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Returns By Period
In the year-to-date period, VTEB achieves a 0.43% return, which is significantly higher than FBND's -0.08% return. Over the past 10 years, VTEB has underperformed FBND with an annualized return of 1.90%, while FBND has yielded a comparatively higher 2.28% annualized 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%
FBND
- 1D
- 0.25%
- 1M
- -1.01%
- 6M
- -0.18%
- YTD
- -0.08%
- 1Y
- 2.33%
- 3Y*
- 4.67%
- 5Y*
- 0.34%
- 10Y*
- 2.28%
- ALL TIME*
- 2.49%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $137.95M | $129.50M | $125.63M | |
| $388.01M | $356.14M | $359.95M |
VTEB vs. FBND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 0.43% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
FBND Fidelity Total Bond ETF | -0.08% | 7.57% | 2.13% | 6.81% | -12.54% | -0.43% | 9.41% | 9.82% | -0.57% | 3.52% |
Correlation
The correlation between VTEB and FBND is 0.70, 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. | 0.70 |
Correlation (3Y) Balances recent behavior with more history. | 0.77 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.73 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.65 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.62 |
The correlation between VTEB and FBND shifts across timeframes, from 0.62 (all time) to 0.77 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VTEB vs. FBND — Risk / Return Rank
VTEB
FBND
VTEB vs. FBND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Fidelity Total Bond ETF (FBND). 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 | FBND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.17 | ||
| Sortino ratioReturn per unit of downside risk | +1.62 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.11 | +0.26 |
| Calmar ratioReturn relative to maximum drawdown | 1.82 | 0.88 | +0.94 |
| Martin ratioReturn relative to average drawdown | 5.96 | 2.22 | +3.74 |
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Drawdowns
VTEB vs. FBND - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, roughly equal to the maximum FBND drawdown of -17.25%. Use the drawdown chart below to compare losses from any high point for VTEB and FBND.
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Drawdown Indicators
| VTEB | FBND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -17.25% | +0.25% |
Max Drawdown (1Y)Largest decline over 1 year | -2.71% | -2.66% | -0.05% |
Max Drawdown (3Y)Largest decline over 3 years | -4.76% | -4.95% | +0.19% |
Max Drawdown (5Y)Largest decline over 5 years | -12.56% | -17.25% | +4.69% |
Max Drawdown (10Y)Largest decline over 10 years | -17.00% | -17.25% | +0.25% |
Current DrawdownCurrent decline from peak | -1.74% | -2.00% | +0.26% |
Average DrawdownAverage peak-to-trough decline | -2.30% | -3.32% | +1.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.82% | 1.05% | -0.23% |
Volatility
VTEB vs. FBND - Volatility Comparison
The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 0.88%, while Fidelity Total Bond ETF (FBND) has a volatility of 0.97%. This indicates that VTEB experiences smaller price fluctuations and is considered to be less risky than FBND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTEB | FBND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.88% | 0.97% | -0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 2.22% | 2.95% | -0.73% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.73% | 3.71% | -0.98% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.92% | 5.93% | -2.01% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.25% | 6.10% | -0.85% |
VTEB vs. FBND - Expense Ratio Comparison
VTEB has a 0.03% expense ratio, which is lower than FBND's 0.36% expense ratio.
Dividends
VTEB vs. FBND - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.43%, less than FBND's 4.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FBND Fidelity Total Bond ETF | 4.76% | 4.70% | 4.73% | 4.26% | 3.07% | 1.86% | 4.25% | 2.90% | 2.93% | 2.56% | 2.84% | 3.26% |
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 FBND have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FBND has higher volatility (0.97%) compared to VTEB (0.88%). In terms of maximum drawdown, VTEB dropped -17.00% vs FBND's -17.25%.
On 10-year performance, FBND leads with 2.28% vs 1.90% for VTEB. On fees, VTEB is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FBND has performed better with a 2.28% return vs 1.90%. 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 0.36% for FBND.
FBND has the higher dividend yield at 4.76%, compared with 3.43% for VTEB.
VTEB is categorized as Municipal Bonds, while FBND is Intermediate Core-Plus Bond. They also come from different issuers: Vanguard and Fidelity. Their fees differ too: 0.03% for VTEB and 0.36% for FBND.
VTEB currently has the higher Sharpe Ratio (1.81 vs 0.63), 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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