VTEB vs. MUB
Compare and contrast key facts about Vanguard Tax-Exempt Bond ETF (VTEB) and iShares National AMT-Free Muni Bond ETF (MUB).
VTEB and MUB 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. MUB is a passively managed fund by iShares that tracks the performance of the S&P National AMT-Free Municipal Bond Index. It was launched on Sep 7, 2007. Both VTEB and MUB 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 MUB.
Key characteristics
| VTEB | MUB | |
|---|---|---|
| YTD Return | 1.58% | 1.59% |
| 1Y Return | 6.31% | 5.64% |
| 3Y Return (Ann) | -0.09% | 0.00% |
| 5Y Return (Ann) | 1.23% | 1.22% |
| Sharpe Ratio | 1.70 | 1.55 |
| Sortino Ratio | 2.48 | 2.23 |
| Omega Ratio | 1.33 | 1.30 |
| Calmar Ratio | 0.93 | 0.93 |
| Martin Ratio | 7.24 | 6.44 |
| Ulcer Index | 0.91% | 0.94% |
| Daily Std Dev | 3.90% | 3.90% |
| Max Drawdown | -17.00% | -13.68% |
| Current Drawdown | -1.22% | -1.19% |
Correlation
The correlation between VTEB and MUB is 0.84, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VTEB vs. MUB - Performance Comparison
The year-to-date returns for both investments are quite close, with VTEB having a 1.58% return and MUB slightly higher at 1.59%. 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. MUB - Expense Ratio Comparison
VTEB has a 0.05% expense ratio, which is lower than MUB's 0.07% 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. MUB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and iShares National AMT-Free Muni Bond ETF (MUB). 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. MUB - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.09%, more than MUB's 2.95% 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% |
MUB iShares National AMT-Free Muni Bond ETF | 2.95% | 2.65% | 2.11% | 1.81% | 2.11% | 2.42% | 2.46% | 2.26% | 2.21% | 2.51% | 2.73% | 3.02% |
Drawdowns
VTEB vs. MUB - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, which is greater than MUB's maximum drawdown of -13.68%. Use the drawdown chart below to compare losses from any high point for VTEB and MUB. For additional features, visit the drawdowns tool.
Volatility
VTEB vs. MUB - Volatility Comparison
Vanguard Tax-Exempt Bond ETF (VTEB) and iShares National AMT-Free Muni Bond ETF (MUB) have volatilities of 1.97% and 1.95%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.