VTEB vs. SCMB
VTEB (Vanguard Tax-Exempt Bond ETF) and SCMB (Schwab Municipal Bond ETF) are both Municipal Bonds funds - VTEB tracks the S&P National AMT-Free Municipal Bond Index while SCMB tracks the ICE AMT-Free Core U.S. National Municipal Index. Both are passively managed. Over the past 3 years, VTEB returned 2.92%/yr vs 2.76%/yr for SCMB. Their correlation of 0.86 means they have usually moved in the same direction. Both charge a 0.03% expense ratio.
Performance
VTEB vs. SCMB - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VTEB achieves a 0.31% return, which is significantly higher than SCMB's 0.06% return.
VTEB
- 1D
- -0.10%
- 1M
- -1.84%
- 6M
- -0.23%
- YTD
- 0.31%
- 1Y
- 4.77%
- 3Y*
- 2.92%
- 5Y*
- 0.53%
- 10Y*
- 1.88%
- ALL TIME*
- 2.28%
SCMB
- 1D
- 0.00%
- 1M
- -1.78%
- 6M
- -0.52%
- YTD
- 0.06%
- 1Y
- 4.38%
- 3Y*
- 2.76%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 3.54%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $37.46M | $30.33M | $30.04M | |
| $377.87M | $352.76M | $360.69M |
VTEB vs. SCMB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 0.31% | 3.72% | 1.31% | 6.15% | 2.54% |
SCMB Schwab Municipal Bond ETF | 0.06% | 3.78% | 0.91% | 5.86% | 2.88% |
Correlation
The correlation between VTEB and SCMB is 0.83, 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. | 0.83 |
Correlation (3Y) Balances recent behavior with more history. | 0.85 |
Correlation (All Time) Calculated using the full available price history since Oct 12, 2022 | 0.86 |
The correlation between VTEB and SCMB has been stable across timeframes, ranging from 0.83 to 0.86 - a consistent structural relationship.
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. SCMB — Risk / Return Rank
VTEB
SCMB
VTEB vs. SCMB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Schwab Municipal Bond ETF (SCMB). 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 | SCMB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.22 | ||
| Sortino ratioReturn per unit of downside risk | +0.33 | ||
| Omega ratioGain probability vs. loss probability | 1.41 | 1.35 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 2.00 | 1.79 | +0.21 |
| Martin ratioReturn relative to average drawdown | 6.62 | 5.53 | +1.08 |
Loading charts...
Drawdowns
VTEB vs. SCMB - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, which is greater than SCMB's maximum drawdown of -6.13%. Use the drawdown chart below to compare losses from any high point for VTEB and SCMB.
Loading charts...
Drawdown Indicators
| VTEB | SCMB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -6.13% | -10.87% |
Max Drawdown (1Y)Largest decline over 1 year | -2.71% | -2.92% | +0.21% |
Max Drawdown (3Y)Largest decline over 3 years | -4.76% | -4.75% | -0.01% |
Max Drawdown (5Y)Largest decline over 5 years | -12.56% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -17.00% | — | — |
Current DrawdownCurrent decline from peak | -1.86% | -1.86% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -2.30% | -1.30% | -1.00% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.82% | 0.94% | -0.12% |
Volatility
VTEB vs. SCMB - Volatility Comparison
The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 0.88%, while Schwab Municipal Bond ETF (SCMB) has a volatility of 1.02%. This indicates that VTEB experiences smaller price fluctuations and is considered to be less risky than SCMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VTEB | SCMB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.88% | 1.02% | -0.14% |
Volatility (6M)Calculated over the trailing 6-month period | 2.22% | 2.35% | -0.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.79% | 3.01% | -0.22% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.92% | 4.12% | -0.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.25% | 4.12% | +1.13% |
VTEB vs. SCMB - Expense Ratio Comparison
Both VTEB and SCMB have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VTEB vs. SCMB - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.42%, less than SCMB's 3.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCMB Schwab Municipal Bond ETF | 3.26% | 3.36% | 3.34% | 3.10% | 0.59% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.14% | 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 SCMB have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCMB has higher volatility (1.02%) compared to VTEB (0.88%). In terms of maximum drawdown, VTEB dropped -17.00% vs SCMB's -6.13%.
On 3-year performance, VTEB leads with 2.92% vs 2.76% for SCMB. Both ETFs have the same 0.03% expense ratio. On volatility, VTEB has been the lower-risk option at 0.88%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, VTEB has performed better with a 2.92% return vs 2.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTEB and SCMB have the same expense ratio: 0.03% per year.
SCMB has the higher dividend yield at 3.26%, compared with 3.14% for VTEB.
VTEB tracks S&P National AMT-Free Municipal Bond Index, while SCMB tracks ICE AMT-Free Core U.S. National Municipal Index. They also come from different issuers: Vanguard and Charles Schwab.
VTEB currently has the higher Sharpe Ratio (1.95 vs 1.73), 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 SCMB
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