VTEB vs. TAXT
VTEB (Vanguard Tax-Exempt Bond ETF) and TAXT (Northern Trust Tax-Exempt Bond ETF) are both Municipal Bonds funds - VTEB tracks the S&P National AMT-Free Municipal Bond Index while TAXT tracks the ICE Focused Municipal Bond Index. Both are passively managed. Their correlation of 0.86 suggests significant overlap in exposure. VTEB charges 0.03%/yr vs 0.05%/yr for TAXT.
Performance
VTEB vs. TAXT - 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 TAXT's 1.45% 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%
TAXT
- 1D
- -0.13%
- 1M
- 0.99%
- YTD
- 1.45%
- 6M
- 1.56%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VTEB vs. TAXT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 1.70% | 4.32% |
TAXT Northern Trust Tax-Exempt Bond ETF | 1.45% | 3.91% |
Correlation
The correlation between VTEB and TAXT is 0.86, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025 | 0.86 |
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Return for Risk
VTEB vs. TAXT — Risk / Return Rank
VTEB
TAXT
Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.
VTEB vs. TAXT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Northern Trust Tax-Exempt Bond ETF (TAXT). 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 | TAXT | 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. TAXT - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, which is greater than TAXT's maximum drawdown of -2.49%. Use the drawdown chart below to compare losses from any high point for VTEB and TAXT.
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Drawdown Indicators
| VTEB | TAXT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -2.49% | -14.51% |
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% | -0.62% | +0.34% |
Average DrawdownAverage peak-to-trough decline | -2.32% | -0.48% | -1.84% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.77% | — | — |
Volatility
VTEB vs. TAXT - Volatility Comparison
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Volatility by Period
| VTEB | TAXT | 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% | 2.53% | +0.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.90% | 2.53% | +1.37% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.25% | 2.53% | +2.72% |
VTEB vs. TAXT - Expense Ratio Comparison
VTEB has a 0.03% expense ratio, which is lower than TAXT'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. TAXT - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.35%, more than TAXT's 2.55% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TAXT Northern Trust Tax-Exempt Bond ETF | 2.55% | 1.23% | 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 TAXT have a correlation of 0.86, 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 TAXT.
VTEB has the higher dividend yield at 3.35%, compared with 2.55% for TAXT.
VTEB tracks S&P National AMT-Free Municipal Bond Index, while TAXT tracks ICE 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 TAXT.
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