VTEB vs. SCHY
VTEB (Vanguard Tax-Exempt Bond ETF) and SCHY (Schwab International 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 SCHY is a Dividend fund tracking the Dow Jones International Dividend 100 Index. Both are passively managed. Over the past 5 years, VTEB returned 0.80%/yr vs 8.28%/yr for SCHY. At a 0.26 correlation, their price movements are largely independent. VTEB charges 0.03%/yr vs 0.08%/yr for SCHY.
Performance
VTEB vs. SCHY - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VTEB achieves a 1.44% return, which is significantly lower than SCHY's 10.44% return.
VTEB
- 1D
- -0.08%
- 1M
- 0.68%
- YTD
- 1.44%
- 6M
- 1.95%
- 1Y
- 6.33%
- 3Y*
- 3.44%
- 5Y*
- 0.80%
- 10Y*
- 2.03%
SCHY
- 1D
- 0.24%
- 1M
- 1.24%
- YTD
- 10.44%
- 6M
- 11.90%
- 1Y
- 22.29%
- 3Y*
- 15.61%
- 5Y*
- 8.28%
- 10Y*
- —
VTEB vs. SCHY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 1.44% | 3.72% | 1.31% | 6.15% | -7.99% | 0.80% |
SCHY Schwab International Dividend Equity ETF | 10.44% | 33.98% | -1.79% | 14.27% | -9.43% | 3.42% |
Correlation
The correlation between VTEB and SCHY is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.32 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.33 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (All Time) Calculated using the full available price history since Apr 29, 2021 | 0.26 |
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VTEB vs. SCHY — Risk / Return Rank
VTEB
SCHY
VTEB vs. SCHY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Schwab International Dividend Equity ETF (SCHY). 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 | SCHY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.52 | ||
| Sortino ratioReturn per unit of downside risk | +0.94 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.33 | +0.18 |
| Calmar ratioReturn relative to maximum drawdown | 2.35 | 2.46 | -0.11 |
| Martin ratioReturn relative to average drawdown | 8.30 | 7.63 | +0.67 |
Loading charts...
Drawdowns
VTEB vs. SCHY - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, smaller than the maximum SCHY drawdown of -24.04%. Use the drawdown chart below to compare losses from any high point for VTEB and SCHY.
Loading charts...
Drawdown Indicators
| VTEB | SCHY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -24.04% | +7.04% |
Max Drawdown (1Y)Largest decline over 1 year | -2.71% | -9.11% | +6.40% |
Max Drawdown (3Y)Largest decline over 3 years | -5.53% | -12.16% | +6.63% |
Max Drawdown (5Y)Largest decline over 5 years | -12.64% | -24.04% | +11.40% |
Max Drawdown (10Y)Largest decline over 10 years | -17.00% | — | — |
Current DrawdownCurrent decline from peak | -0.54% | -2.94% | +2.40% |
Average DrawdownAverage peak-to-trough decline | -2.32% | -4.97% | +2.65% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.77% | 2.95% | -2.18% |
Volatility
VTEB vs. SCHY - Volatility Comparison
The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 0.93%, while Schwab International Dividend Equity ETF (SCHY) has a volatility of 3.37%. This indicates that VTEB experiences smaller price fluctuations and is considered to be less risky than SCHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VTEB | SCHY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.93% | 3.37% | -2.44% |
Volatility (6M)Calculated over the trailing 6-month period | 2.04% | 9.96% | -7.92% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.70% | 12.07% | -9.37% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.90% | 13.28% | -9.38% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.26% | 13.23% | -7.97% |
VTEB vs. SCHY - Expense Ratio Comparison
VTEB has a 0.03% expense ratio, which is lower than SCHY's 0.08% 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. SCHY - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.36%, which matches SCHY's 3.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHY Schwab International Dividend Equity ETF | 3.36% | 3.55% | 4.64% | 3.97% | 3.67% | 1.73% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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 SCHY have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHY has higher volatility (3.37%) compared to VTEB (0.93%). In terms of maximum drawdown, VTEB dropped -17.00% vs SCHY's -24.04%.
On 5-year performance, SCHY leads with 8.28% vs 0.80% for VTEB. On fees, VTEB is cheaper at 0.03% per year. On volatility, VTEB has been the lower-risk option at 0.93%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, SCHY has performed better with a 8.28% return vs 0.80%. 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 0.08% for SCHY.
VTEB and SCHY have nearly identical dividend yields, around 3.36%.
VTEB is categorized as Municipal Bonds, while SCHY is Dividend. VTEB tracks S&P National AMT-Free Municipal Bond Index, while SCHY tracks Dow Jones International Dividend 100 Index. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.03% for VTEB and 0.08% for SCHY.
VTEB currently has the higher Sharpe Ratio (2.38 vs 1.86), 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.
Find the right allocation for VTEB and SCHY
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer