VTEB vs. FMUN

Last updated Jun 24, 2026

VTEB (Vanguard Tax-Exempt Bond ETF) and FMUN (Fidelity Systematic Municipal Bond Index ETF) are both Municipal Bonds funds. VTEB is passively managed, while FMUN is actively managed. Over the past year, VTEB returned 6.65% vs 7.03% for FMUN. A 0.78 correlation means they provide meaningful diversification when combined. VTEB charges 0.03%/yr vs 0.05%/yr for FMUN.

Performance

VTEB vs. FMUN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Tax-Exempt Bond ETF (VTEB) and Fidelity Systematic Municipal Bond Index ETF (FMUN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTEB achieves a 1.70% return, which is significantly higher than FMUN's 1.55% return.

VTEB

• 1D: -0.02%
• 1M: 1.38%
• YTD: 1.70%
• 6M: 1.88%
• 1Y: 6.65%
• 3Y*: 3.38%
• 5Y*: 0.95%
• 10Y*: 1.97%

FMUN

• 1D: 0.11%
• 1M: 1.40%
• YTD: 1.55%
• 6M: 1.55%
• 1Y: 7.03%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VTEB vs. FMUN - Yearly Performance Comparison

	2026 (YTD)	2025
VTEB Vanguard Tax-Exempt Bond ETF	1.70%	3.46%
FMUN Fidelity Systematic Municipal Bond Index ETF	1.55%	3.28%

Correlation

The correlation between VTEB and FMUN is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.76
Correlation (All Time) Calculated using the full available price history since Apr 7, 2025	0.78

The correlation between VTEB and FMUN has been stable across timeframes, ranging from 0.76 to 0.78 - a consistent structural relationship.

Return for Risk

VTEB vs. FMUN — Risk / Return Rank

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

VTEB

VTEB Risk / Return Rank: 72
VTEB Sharpe Ratio Rank: 81
VTEB Sortino Ratio Rank: 86
VTEB Omega Ratio Rank: 89
VTEB Calmar Ratio Rank: 51
VTEB Martin Ratio Rank: 52

FMUN

FMUN Risk / Return Rank: 67
FMUN Sharpe Ratio Rank: 76
FMUN Sortino Ratio Rank: 79
FMUN Omega Ratio Rank: 86
FMUN Calmar Ratio Rank: 47
FMUN Martin Ratio Rank: 46

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. FMUN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Fidelity Systematic Municipal Bond Index ETF (FMUN). 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	FMUN	Difference
Sharpe ratio: Return per unit of total volatility	2.49	2.28	+0.22
Sortino ratio: Return per unit of downside risk	3.69	3.29	+0.40
Omega ratio: Gain probability vs. loss probability	1.54	1.49	+0.05
Calmar ratio: Return relative to maximum drawdown	2.47	2.20	+0.26
Martin ratio: Return relative to average drawdown	8.69	7.13	+1.56

VTEB vs. FMUN - Sharpe Ratio Comparison

The current VTEB Sharpe Ratio is 2.49, which is comparable to the FMUN Sharpe Ratio of 2.28. The chart below compares the historical Sharpe Ratios of VTEB and FMUN, 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. FMUN - Drawdown Comparison

The maximum VTEB drawdown since its inception was -17.00%, which is greater than FMUN's maximum drawdown of -3.83%. Use the drawdown chart below to compare losses from any high point for VTEB and FMUN.

Drawdown Indicators

	VTEB	FMUN	Difference
Max Drawdown Largest peak-to-trough decline	-17.00%	-3.83%	-13.17%
Max Drawdown (1Y) Largest decline over 1 year	-2.71%	-3.21%	+0.50%
Max Drawdown (3Y) Largest decline over 3 years	-5.53%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-12.64%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-17.00%	—	—
Current Drawdown Current decline from peak	-0.28%	-0.80%	+0.52%
Average Drawdown Average peak-to-trough decline	-2.32%	-1.13%	-1.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.77%	0.99%	-0.22%

Volatility

VTEB vs. FMUN - Volatility Comparison

The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 0.72%, while Fidelity Systematic Municipal Bond Index ETF (FMUN) has a volatility of 0.98%. This indicates that VTEB experiences smaller price fluctuations and is considered to be less risky than FMUN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTEB	FMUN	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.72%	0.98%	-0.26%
Volatility (6M) Calculated over the trailing 6-month period	2.06%	2.38%	-0.32%
Volatility (1Y) Calculated over the trailing 1-year period	2.68%	3.10%	-0.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.90%	4.12%	-0.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.25%	4.12%	+1.13%

VTEB vs. FMUN - Expense Ratio Comparison

VTEB has a 0.03% expense ratio, which is lower than FMUN's 0.05% 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. FMUN - Dividend Comparison

VTEB's dividend yield for the trailing twelve months is around 3.35%, more than FMUN's 3.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FMUN Fidelity Systematic Municipal Bond Index ETF	3.29%	2.41%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VTEB Vanguard Tax-Exempt Bond ETF	3.35%	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 FMUN in my portfolio?

VTEB and FMUN have a correlation of 0.76, 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 FMUN?

FMUN has higher volatility (0.98%) compared to VTEB (0.72%). In terms of maximum drawdown, VTEB dropped -17.00% vs FMUN's -3.83%.

Which ETF is better, VTEB or FMUN?

On 1-year performance, FMUN leads with 7.03% vs 6.65% for VTEB. On fees, VTEB is cheaper at 0.03% per year. On volatility, VTEB has been the lower-risk option at 0.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTEB or FMUN?

Over the 1-year period, FMUN has performed better with a 7.03% return vs 6.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTEB or FMUN?

VTEB is cheaper with a 0.03% expense ratio, compared with 0.05% for FMUN.

Which ETF pays a higher dividend yield, VTEB or FMUN?

VTEB has the higher dividend yield at 3.35%, compared with 3.29% for FMUN.

What is the main difference between VTEB and FMUN?

They also come from different issuers: Vanguard and Fidelity. Their fees differ too: 0.03% for VTEB and 0.05% for FMUN.

Which has better risk-adjusted returns?

VTEB currently has the higher Sharpe Ratio (2.49 vs 2.28), 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.