VTEB vs. TAXS
VTEB (Vanguard Tax-Exempt Bond ETF) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds - VTEB tracks the S&P National AMT-Free Municipal Bond Index while TAXS tracks the ICE Short Term Focused Municipal Bond Index. Both are passively managed. A 0.66 correlation means they provide meaningful diversification when combined. VTEB charges 0.03%/yr vs 0.05%/yr for TAXS.
Performance
VTEB vs. TAXS - Performance Comparison
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Returns By Period
In the year-to-date period, VTEB achieves a 1.70% return, which is significantly higher than TAXS's 1.03% return.
VTEB
- 1D
- -0.02%
- 1M
- 1.38%
- YTD
- 1.70%
- 6M
- 1.88%
- 1Y
- 6.65%
- 3Y*
- 3.38%
- 5Y*
- 0.95%
- 10Y*
- 1.97%
TAXS
- 1D
- -0.02%
- 1M
- 0.62%
- YTD
- 1.03%
- 6M
- 1.18%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VTEB vs. TAXS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 1.70% | 4.32% |
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF | 1.03% | 1.22% |
Correlation
The correlation between VTEB and TAXS is 0.66, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025 | 0.66 |
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Return for Risk
VTEB vs. TAXS — Risk / Return Rank
VTEB
TAXS
Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.
VTEB vs. TAXS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). 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 | TAXS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | — | — | |
| Sortino ratioReturn per unit of downside risk | — | — | |
| Omega ratioGain probability vs. loss probability | 1.54 | — | — |
| Calmar ratioReturn relative to maximum drawdown | 2.47 | — | — |
| Martin ratioReturn relative to average drawdown | 8.69 | — | — |
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Drawdowns
VTEB vs. TAXS - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for VTEB and TAXS.
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Drawdown Indicators
| VTEB | TAXS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -0.84% | -16.16% |
Max Drawdown (1Y)Largest decline over 1 year | -2.71% | — | — |
Max Drawdown (3Y)Largest decline over 3 years | -5.53% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -12.64% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -17.00% | — | — |
Current DrawdownCurrent decline from peak | -0.28% | -0.04% | -0.24% |
Average DrawdownAverage peak-to-trough decline | -2.32% | -0.22% | -2.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.77% | — | — |
Volatility
VTEB vs. TAXS - Volatility Comparison
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Volatility by Period
| VTEB | TAXS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.72% | — | — |
Volatility (6M)Calculated over the trailing 6-month period | 2.06% | — | — |
Volatility (1Y)Calculated over the trailing 1-year period | 2.68% | 0.99% | +1.69% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.90% | 0.99% | +2.91% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.25% | 0.99% | +4.26% |
VTEB vs. TAXS - Expense Ratio Comparison
VTEB has a 0.03% expense ratio, which is lower than TAXS's 0.05% 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. TAXS - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.35%, more than TAXS's 1.82% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF | 1.82% | 0.74% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.35% | 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 TAXS have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, VTEB is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.
VTEB is cheaper with a 0.03% expense ratio, compared with 0.05% for TAXS.
VTEB has the higher dividend yield at 3.35%, compared with 1.82% for TAXS.
VTEB tracks S&P National AMT-Free Municipal Bond Index, while TAXS tracks ICE Short Term Focused Municipal Bond Index. They also come from different issuers: Vanguard and Northern Trust. Their fees differ too: 0.03% for VTEB and 0.05% for TAXS.
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