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VTEB vs. SCHD
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTEB vs. SCHD

Last updated Jun 7, 2026

VTEB (Vanguard Tax-Exempt Bond ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, VTEB returned 2.09%/yr vs 12.64%/yr for SCHD. At a correlation of -0.01, they often move in opposite directions. VTEB charges 0.03%/yr vs 0.06%/yr for SCHD.

Performance

VTEB vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Tax-Exempt Bond ETF (VTEB) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VTEB achieves a 1.44% return, which is significantly lower than SCHD's 18.75% return. Over the past 10 years, VTEB has underperformed SCHD with an annualized return of 2.09%, while SCHD has yielded a comparatively higher 12.64% annualized return.

VTEB

1D
-0.16%
1M
0.37%
YTD
1.44%
6M
1.85%
1Y
7.03%
3Y*
3.45%
5Y*
0.87%
10Y*
2.09%

SCHD

1D
-0.89%
1M
2.15%
YTD
18.75%
6M
18.75%
1Y
26.41%
3Y*
15.14%
5Y*
8.31%
10Y*
12.64%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTEB vs. SCHD - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VTEB
Vanguard Tax-Exempt Bond ETF		1.44%3.72%1.31%6.15%-7.99%1.14%5.19%7.35%1.04%4.87%
SCHD
Schwab U.S. Dividend Equity ETF		18.75%4.34%11.66%4.54%-3.26%29.87%15.03%27.29%-5.56%20.85%

Correlation

The correlation between VTEB and SCHD is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.11

Correlation (3Y)
Calculated over the trailing 3-year period

0.17

Correlation (5Y)
Calculated over the trailing 5-year period

0.13

Correlation (10Y)
Calculated over the trailing 10-year period

0.02

Correlation (All Time)
Calculated using the full available price history since Aug 26, 2015

-0.01

The correlation between VTEB and SCHD shifts across timeframes, from -0.01 (all time) to 0.17 (3 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Tax-Exempt Bond ETF

Schwab U.S. Dividend Equity ETF

Often compared with VTEB:
VTEB vs. MUBVTEB vs. VTESVTEB vs. BNDVTEB vs. VWIUXVTEB vs. VTEIVTEB vs. VWAHXVTEB vs. VTEAX
Often compared with SCHD:
SCHD vs. VOOSCHD vs. VYMSCHD vs. SPYSCHD vs. SCHGSCHD vs. JEPISCHD vs. FDVVSCHD vs. VIG

Return for Risk

VTEB vs. SCHD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTEB
VTEB Risk / Return Rank: 7171
Overall Rank
VTEB Sharpe Ratio Rank: 7979
Sharpe Ratio Rank
VTEB Sortino Ratio Rank: 8484
Sortino Ratio Rank
VTEB Omega Ratio Rank: 8888
Omega Ratio Rank
VTEB Calmar Ratio Rank: 5252
Calmar Ratio Rank
VTEB Martin Ratio Rank: 5353
Martin Ratio Rank
SCHD
SCHD Risk / Return Rank: 8383
Overall Rank
SCHD Sharpe Ratio Rank: 8080
Sharpe Ratio Rank
SCHD Sortino Ratio Rank: 8888
Sortino Ratio Rank
SCHD Omega Ratio Rank: 7878
Omega Ratio Rank
SCHD Calmar Ratio Rank: 9292
Calmar Ratio Rank
SCHD Martin Ratio Rank: 7878
Martin Ratio Rank
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. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Schwab U.S. Dividend Equity ETF (SCHD). 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.

VTEBSCHDDifference
Sharpe ratioReturn per unit of total volatility
2.50
2.55

-0.05

Sortino ratioReturn per unit of downside risk
3.71
3.94

-0.23

Omega ratioGain probability vs. loss probability

1.54

1.46

+0.08

Calmar ratioReturn relative to maximum drawdown

2.51

6.07

-3.57

Martin ratioReturn relative to average drawdown

8.91

14.90

-5.99

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTEB vs. SCHD - Sharpe Ratio Comparison

The current VTEB Sharpe Ratio is 2.50, which is comparable to the SCHD Sharpe Ratio of 2.55. The chart below compares the historical Sharpe Ratios of VTEB and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

VTEBSCHDDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.50

2.55

-0.05

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.22

0.58

-0.36

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.40

0.76

-0.36

Sharpe Ratio (All Time)

Calculated using the full available price history

0.47

0.86

-0.39

Drawdowns

VTEB vs. SCHD - Drawdown Comparison

The maximum VTEB drawdown since its inception was -17.00%, smaller than the maximum SCHD drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for VTEB and SCHD.

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Drawdown Indicators

VTEBSCHDDifference

Max Drawdown

Largest peak-to-trough decline

-17.00%

-33.37%

+16.37%

Max Drawdown (1Y)

Largest decline over 1 year

-2.71%

-4.61%

+1.90%

Max Drawdown (3Y)

Largest decline over 3 years

-5.53%

-16.13%

+10.60%

Max Drawdown (5Y)

Largest decline over 5 years

-12.64%

-16.85%

+4.21%

Max Drawdown (10Y)

Largest decline over 10 years

-17.00%

-33.37%

+16.37%

Current Drawdown

Current decline from peak

-0.54%

-1.61%

+1.07%

Average Drawdown

Average peak-to-trough decline

-2.32%

-3.32%

+1.00%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.76%

1.88%

-1.12%

Volatility

VTEB vs. SCHD - Volatility Comparison

The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 0.91%, while Schwab U.S. Dividend Equity ETF (SCHD) has a volatility of 2.87%. This indicates that VTEB experiences smaller price fluctuations and is considered to be less risky than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VTEBSCHDDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.91%

2.87%

-1.96%

Volatility (6M)

Calculated over the trailing 6-month period

2.02%

7.61%

-5.59%

Volatility (1Y)

Calculated over the trailing 1-year period

2.71%

10.98%

-8.27%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

3.90%

14.38%

-10.48%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.26%

16.72%

-11.46%

VTEB vs. SCHD - Expense Ratio Comparison

VTEB has a 0.03% expense ratio, which is lower than SCHD's 0.06% 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. SCHD - Dividend Comparison

VTEB's dividend yield for the trailing twelve months is around 3.36%, more than SCHD's 3.27% yield.

PositionTTM20252024202320222021202020192018201720162015
SCHD
Schwab U.S. Dividend Equity ETF		3.27%3.82%3.64%3.49%3.39%2.78%3.16%2.98%3.06%2.63%2.89%2.97%
VTEB
Vanguard Tax-Exempt Bond ETF		3.36%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 SCHD have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

SCHD has higher volatility (2.87%) compared to VTEB (0.91%). In terms of maximum drawdown, VTEB dropped -17.00% vs SCHD's -33.37%.

On 10-year performance, SCHD leads with 12.64% vs 2.09% for VTEB. On fees, VTEB is cheaper at 0.03% per year. On volatility, VTEB has been the lower-risk option at 0.91%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, SCHD has performed better with a 12.64% return vs 2.09%. 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 0.06% for SCHD.

VTEB has the higher dividend yield at 3.36%, compared with 3.27% for SCHD.

VTEB is categorized as Municipal Bonds, while SCHD is Dividend. VTEB tracks S&P National AMT-Free Municipal Bond Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.03% for VTEB and 0.06% for SCHD.

SCHD currently has the higher Sharpe Ratio (2.55 vs 2.50), 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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