VTEB vs. MUNI
VTEB (Vanguard Tax-Exempt Bond ETF) and MUNI (PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund) are both Municipal Bonds funds. VTEB is passively managed, while MUNI is actively managed. Over the past 10 years, VTEB returned 1.90%/yr vs 1.97%/yr for MUNI. Their 0.71 correlation means they have sometimes moved together and sometimes differently. VTEB charges 0.03%/yr vs 0.35%/yr for MUNI.
Performance
VTEB vs. MUNI - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with VTEB having a 0.43% return and MUNI slightly higher at 0.45%. Both investments have delivered pretty close results over the past 10 years, with VTEB having a 1.90% annualized return and MUNI not far ahead at 1.97%.
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%
MUNI
- 1D
- 0.08%
- 1M
- -1.31%
- 6M
- -0.37%
- YTD
- 0.45%
- 1Y
- 4.21%
- 3Y*
- 3.59%
- 5Y*
- 0.97%
- 10Y*
- 1.97%
- ALL TIME*
- 2.67%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $17.68M | $16.13M | $16.68M | |
| $388.01M | $356.14M | $359.95M |
VTEB vs. MUNI - 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% |
MUNI PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund | 0.45% | 4.72% | 1.43% | 6.07% | -6.62% | 0.67% | 4.83% | 7.09% | 0.84% | 4.86% |
Correlation
The correlation between VTEB and MUNI is 0.85, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.85 |
Correlation (3Y) Balances recent behavior with more history. | 0.86 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.84 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.72 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.71 |
The correlation between VTEB and MUNI shifts across timeframes, from 0.71 (all time) to 0.86 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VTEB vs. MUNI — Risk / Return Rank
VTEB
MUNI
VTEB vs. MUNI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund (MUNI). 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 | MUNI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.03 | ||
| Sortino ratioReturn per unit of downside risk | -0.03 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.38 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.82 | 1.84 | -0.02 |
| Martin ratioReturn relative to average drawdown | 5.96 | 5.37 | +0.59 |
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Drawdowns
VTEB vs. MUNI - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, which is greater than MUNI's maximum drawdown of -11.15%. Use the drawdown chart below to compare losses from any high point for VTEB and MUNI.
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Drawdown Indicators
| VTEB | MUNI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -11.15% | -5.85% |
Max Drawdown (1Y)Largest decline over 1 year | -2.71% | -2.29% | -0.42% |
Max Drawdown (3Y)Largest decline over 3 years | -4.76% | -3.67% | -1.09% |
Max Drawdown (5Y)Largest decline over 5 years | -12.56% | -11.02% | -1.54% |
Max Drawdown (10Y)Largest decline over 10 years | -17.00% | -11.15% | -5.85% |
Current DrawdownCurrent decline from peak | -1.74% | -1.57% | -0.17% |
Average DrawdownAverage peak-to-trough decline | -2.30% | -1.72% | -0.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.82% | 0.78% | +0.04% |
Volatility
VTEB vs. MUNI - Volatility Comparison
Vanguard Tax-Exempt Bond ETF (VTEB) and PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund (MUNI) have volatilities of 0.88% and 0.86%, 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.
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Volatility by Period
| VTEB | MUNI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.88% | 0.86% | +0.02% |
Volatility (6M)Calculated over the trailing 6-month period | 2.22% | 1.83% | +0.39% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.73% | 2.31% | +0.42% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.92% | 3.33% | +0.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.25% | 3.85% | +1.40% |
VTEB vs. MUNI - Expense Ratio Comparison
VTEB has a 0.03% expense ratio, which is lower than MUNI's 0.35% expense ratio.
Dividends
VTEB vs. MUNI - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.43%, more than MUNI's 3.37% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MUNI PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund | 3.37% | 3.26% | 3.50% | 3.09% | 2.13% | 1.62% | 1.92% | 2.44% | 2.38% | 2.37% | 2.37% | 2.20% |
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 MUNI have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEB has higher volatility (0.88%) compared to MUNI (0.86%). In terms of maximum drawdown, VTEB dropped -17.00% vs MUNI's -11.15%.
On 10-year performance, MUNI leads with 1.97% 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, MUNI has performed better with a 1.97% 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 0.35% for MUNI.
VTEB has the higher dividend yield at 3.43%, compared with 3.37% for MUNI.
They also come from different issuers: Vanguard and PIMCO. Their fees differ too: 0.03% for VTEB and 0.35% for MUNI.
MUNI currently has the higher Sharpe Ratio (1.83 vs 1.81), 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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