VTEB vs. MEAR
VTEB (Vanguard Tax-Exempt Bond ETF) and MEAR (iShares Short Maturity Municipal Bond ETF) are both Municipal Bonds funds. VTEB is passively managed, while MEAR is actively managed. Over the past 10 years, VTEB returned 2.09%/yr vs 1.78%/yr for MEAR. At a 0.22 correlation, their price movements are largely independent. VTEB charges 0.05%/yr vs 0.25%/yr for MEAR.
Performance
VTEB vs. MEAR - Performance Comparison
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Returns By Period
In the year-to-date period, VTEB achieves a 1.46% return, which is significantly higher than MEAR's 1.06% return. Over the past 10 years, VTEB has outperformed MEAR with an annualized return of 2.09%, while MEAR has yielded a comparatively lower 1.78% annualized return.
VTEB
- 1D
- -0.06%
- 1M
- 0.66%
- YTD
- 1.46%
- 6M
- 1.89%
- 1Y
- 7.14%
- 3Y*
- 3.57%
- 5Y*
- 0.88%
- 10Y*
- 2.09%
MEAR
- 1D
- 0.00%
- 1M
- 0.32%
- YTD
- 1.06%
- 6M
- 1.30%
- 1Y
- 3.29%
- 3Y*
- 3.58%
- 5Y*
- 2.43%
- 10Y*
- 1.78%
VTEB vs. MEAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 1.46% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
MEAR iShares Short Maturity Municipal Bond ETF | 1.06% | 3.76% | 3.40% | 3.93% | 0.10% | 0.05% | 1.18% | 1.91% | 1.63% | 1.12% |
Correlation
The correlation between VTEB and MEAR is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.27 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.32 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.23 |
Correlation (All Time) Calculated using the full available price history since Aug 26, 2015 | 0.22 |
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Return for Risk
VTEB vs. MEAR — Risk / Return Rank
VTEB
MEAR
VTEB vs. MEAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and iShares Short Maturity Municipal Bond ETF (MEAR). 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.
| VTEB | MEAR | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.64 | 3.86 | -1.22 |
Sortino ratioReturn per unit of downside risk | 3.92 | 6.19 | -2.27 |
Omega ratioGain probability vs. loss probability | 1.58 | 1.91 | -0.33 |
Calmar ratioReturn relative to maximum drawdown | 2.65 | 7.07 | -4.42 |
Martin ratioReturn relative to average drawdown | 9.41 | 28.99 | -19.58 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VTEB | MEAR | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.64 | 3.86 | -1.22 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.23 | 2.48 | -2.25 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.40 | 1.18 | -0.78 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.47 | 1.11 | -0.64 |
Drawdowns
VTEB vs. MEAR - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, which is greater than MEAR's maximum drawdown of -2.68%. Use the drawdown chart below to compare losses from any high point for VTEB and MEAR.
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Drawdown Indicators
| VTEB | MEAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -2.68% | -14.32% |
Max Drawdown (1Y)Largest decline over 1 year | -2.71% | -0.47% | -2.24% |
Max Drawdown (3Y)Largest decline over 3 years | -5.53% | -0.86% | -4.67% |
Max Drawdown (5Y)Largest decline over 5 years | -12.64% | -1.12% | -11.52% |
Max Drawdown (10Y)Largest decline over 10 years | -17.00% | -2.68% | -14.32% |
Current DrawdownCurrent decline from peak | -0.52% | 0.00% | -0.52% |
Average DrawdownAverage peak-to-trough decline | -2.33% | -0.19% | -2.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.76% | 0.11% | +0.65% |
Volatility
VTEB vs. MEAR - Volatility Comparison
Vanguard Tax-Exempt Bond ETF (VTEB) has a higher volatility of 0.89% compared to iShares Short Maturity Municipal Bond ETF (MEAR) at 0.24%. This indicates that VTEB's price experiences larger fluctuations and is considered to be riskier than MEAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTEB | MEAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.89% | 0.24% | +0.65% |
Volatility (6M)Calculated over the trailing 6-month period | 2.01% | 0.61% | +1.40% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.72% | 0.86% | +1.86% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.90% | 0.98% | +2.92% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.26% | 1.52% | +3.74% |
VTEB vs. MEAR - Expense Ratio Comparison
VTEB has a 0.05% expense ratio, which is lower than MEAR's 0.25% 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. MEAR - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.35%, more than MEAR's 2.84% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MEAR iShares Short Maturity Municipal Bond ETF | 2.84% | 2.95% | 3.44% | 3.30% | 0.88% | 0.30% | 0.90% | 1.57% | 1.36% | 1.01% | 0.81% | 0.53% |
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
VTEB and MEAR have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEB has higher volatility (0.89%) compared to MEAR (0.24%). In terms of maximum drawdown, VTEB dropped -17.00% vs MEAR's -2.68%.
On 10-year performance, VTEB leads with 2.09% vs 1.78% for MEAR. On fees, VTEB is cheaper at 0.05% per year. On volatility, MEAR has been the lower-risk option at 0.24%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VTEB has performed better with a 2.09% return vs 1.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTEB is cheaper with a 0.05% expense ratio, compared with 0.25% for MEAR.
VTEB has the higher dividend yield at 3.35%, compared with 2.84% for MEAR.
They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for VTEB and 0.25% for MEAR.
MEAR currently has the higher Sharpe Ratio (3.86 vs 2.64), 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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